Cryptocurrency exchange Poloniex was attacked by a corrupt actor, resulting in the loss of more than $60 million of its customers’ funds. Justin Sun led the exchange and began an investigation, which is still ongoing, to determine the identity of the attackers.

Poloniex makes an offer to attackers

Nansen cryptocurrency analytics platform Data It indicates that more than $68 million worth of tokens left Poloniex over the past day. The image below shows that the attacker stole assets in ETH, BADGER, REN, OKB, NEXO, and 170 other tokens.

Nansen also confirmed that the largest losses were suffered by major assets, such as Ethereum and USDT, at around $11 million each. Other tokens such as ELON, USDC, SHIB, and GLM saw smaller but still multi-million dollar losses.

A few hours ago, as we reported, the exchange launched an investigation and Justin assured its users that the platform maintains a “healthy financial position.” In this sense, Sun, who is also the founder of the TRON blockchain, claimed that users will be compensated for their losses.

The platform is currently exploring partnerships with other cryptocurrency exchanges for refunds. sun advertiser:

We offer a 5% white hat bonus to Poloniex hacker. Please return funds to the following ETH/TRX/BTC wallets. We will give you 7 days to consider this offer before we intervene to enforce the law.

In the cryptocurrency community, some users praised these efforts to recover funds and encouraged the attacker or attackers to take the bounty in exchange for “pointing out weaknesses” in the platform’s security. However, other users criticized this action. One community member stated:

(…) A white hat doesn’t steal money and then ask for a reward, whatever you promise, law enforcement will be involved. It’s like saying you can beat someone to death, but if you take them to the hospital you will be safe (…).

Who is behind the Poloniex attack?

It remains to be seen whether the striker will accept the offer. In the cryptocurrency space, many cyberattacks have been carried out by state-sponsored hacking groups, such as the notorious Lazarus Group, which allegedly works for the North Korean government.

According to a report from our sister site Bitcoinist, this group has stolen billions of dollars from the nascent industry in the past two years. The terrorist group is alleged to be a key component of the country’s nuclear programme. Jason Bartlett, a researcher at the Center for a New American Security (CNAS), said:

Cryptocurrency offers Pyongyang a new type of currency that is less regulated and understood by national governments, financial institutions and international organizations.

However, cryptocurrencies also serve as an important tool for law enforcement agencies to track down and reduce funding for rogue entities. Due to the transparency of blockchain technology, some criminals are turning away from digital assets and cryptocurrency exchanges.

As of this writing, Ethereum (ETH) is trading at $2,077 with a 7% gain over the past 24 hours.

Cover image from Unsplash, chart from Tradingview