Poly Network Losses Billions of Dollars In Crypto Assets To Hack Exploitation

DeFi protocol Poly Network has suffered another hack attack, losing billions in crypto assets, including 10 billion BUSD and over 999 trillion Shiba Inu tokens.

A July 1 tweet by on-chain sleuth Wu Blockchain confirmed a breach in the protocols cross-bridge leading to illegal token minting. This incident comes nearly two years after Poly Network lost $600 million to a hack attack.

Hackers Drain Millions Of Dollars in Crypto Assets Across Multiple Blockchains From Poly Network

According to Wu Blockchain, the hacker manipulated Poly Network's cross-bridge function, PolyBridge, to mint chunks of tokens across different networks.

The hacker issued 10 billion BUSD and 99,999,184 BNB on Metis, 999.8 trillion Shiba Inu tokens on the Huobi ECO (HECO) chain.

Other tokens illegally minted by the exploiters include 87.6 million COW, 999.998 million OOE, 636.64 million STACK, 88.64 million GM, and 2.17 million O3 on Polygon.

The hackers also issued over 378 million STACK, 82.85 XTM, 11+ million SPAY, and 89.38 million GM tokens on Avalanche. They also minted millions of other crypto assets on Binance Smart Chain (BSC).

Furthermore, blockchain security firm CertiK confirms the news of the exploitation. According to a CertiK Alert tweet on July 2, Poly Network lost $42 billion in assets issued across multiple blockchains in the latest attack.

Of the $42 billion, BUSD and BNB minted by the hackers on Metis blockchain accounted for $34.5 billion.

However, Metis reassured users that there is no need to panic, noting that Poly Network lacks the liquidity to execute a sell function for the illegally minted assets.

Moreover, the protocol has locked all minted METIS tokens on the BNB chain. However, blockchain analytics firm Lookonchain disclosed that the exploiters found liquidity and exchanged 94 billion SHIB for 360 ETH.

The hackers also sold 459 million COOK and 15 million RFuel tokens for 43 ETH. On-chain tracking protocol, MistTrack, outlined a detailed breakdown of the hackers' cash out, which amounted to $4.39 million.

According to MistTrack, the hackers used Tornado Cash, Uniswap, Pancakeswap, ChangeNOW, KuCoin, and other platforms to carry out transactions.

The Aftermath of The Hack Incident

Responding to the incident, the Poly Network team said they have temporarily halted services, soliciting support from cybersecurity experts to resolve the issue. It also urged people with relevant information to contact them.

The Poly Network team also stated it involved relevant authorities and law enforcement agencies to investigate the incident. The protocol is hopeful that the hackers would return the stolen funds to avoid the wrath of the law.

According to the protocol, the hack exploitation affected 57 crypto assets across ten blockchain protocols. It released a spreadsheet detailing the affected tokens and respective blockchains.

The team asked relevant parties to withdraw liquidity from decentralized protocols to prevent the hackers from selling the stolen tokens.

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