Poloniex Announces Resumption of Operations After $100 Million Hack
Cryptocurrency exchange Poloniex recently revealed its plans to recommence operations after falling victim to a major hack that resulted in over $100 million in losses. Following the restoration efforts post-hack, the exchange will begin deposits and withdrawal services, assuring users of safety through the implementation of new security measures.
In response to users’ concerns, Poloniex announced that the wallet restoration efforts have been mostly completed, and the trading system is now operating smoothly. The exchange is also fortifying security by undergoing a top-tier audit that is nearing completion. After the audit, a full restoration of deposit and withdrawal services will be initiated.
The exchange addressed security concerns by hiring a top security audit firm to assess the level of safety before resuming operations and to prevent further incidents. The security audit and verification processes are still ongoing and are expected to take several days, after which the team will promptly resume deposit and withdrawal services and notify users of any new developments.
Crypto users across social media spaces commended the prompt reaction of the team following the hack but advised exercising caution before the platform’s relaunch to avoid a subsequent attack. Justin Sun, who acquired the exchange in 2019, reassured users that all lost funds would be recovered and pledged to carry out a full investigation with transparency.
About the $100 Million Hack
On November 10, blockchain security firm PeckShield flagged multiple transactions out of the exchange’s wallet, resulting in losses estimated to be above $100 million. The main cause of the hack remains relatively unknown, although several firms point to a compromise of private keys. The hackers deployed several accounts and swapped the stolen assets through various transactions.
In response, Poloniex deactivated the wallet and announced a pause on major activities while the investigation commenced. Justin Sun insisted that the firm maintains a healthy financial position and would reimburse every affected user, having already begun the recovery process in partnership with other digital asset exchanges.
While the incident sparked negative reactions in the industry, crypto users called for more scrutiny across exchanges, decentralized applications, and networks. Additionally, Justin Sun announced a 5% white hat bounty to the hacker, offering a seven-day window to return the stolen assets before law enforcement is engaged.
In conclusion, Poloniex is making significant strides to restore confidence after the major hack by implementing new security measures and undergoing a thorough audit process. The exchange remains committed to reimbursing affected users and maintaining transparency throughout the recovery process.
