PolyNetwork Hack: The Largest Defi Hack Saga Sees a Happy Ending

By Prashant Jha
August 23, 2021 Updated August 23, 2021
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PolyNetwork, the cross-chain Defi protocol that became the victim of the largest Defi hack resulting in funds worth $610 million being stolen has finally received the private key to the remaining fund amounting to near $200 million. PolyNetwork thanked the hacker for returning the remaining funds claiming they are ready for a new “journey.” The protocol had addressed the hacker as “White Hat” and even offered him a job as their chief security officer.

Source: EtherScan

The hacker also released a note along with the final private key mentioning the “Happy Ending.”

The protocol was hacked on 10th August, where the hacker managed to override permission from the “bookkeepers.” These bookkeepers were responsible for approving cross-chain transactions. The hacker behind the attack managed to move away from funds to three different blockchain wallets of Ethereum, Binance, and Polygon.

The developers of the cross-chain defi project requested hackers to return the fund while threatening legal consequences. A majority of the funds were converted to stablecoins USDC, USDT, and BUSD. Early reports indicated that the hacker tried laundering the money first on Curve protocol but initial transactions failed as Tether blocked USDT transactions from the hacker’s wallet.

The hacker later agreed to return the funds while claiming he could have taken in billions had he decided to transfer other shitcoins. The communication between PolyNetwork and the hacker went on for nearly two weeks where he first returned nearly $400 million worth of assets, while the remaining $200 million were returned today.

PolyNetwork Resumes Cross-Chain Support

The largest Defi Hack that could have proven to be a soar thumb of the highly popular and successful industry has met a happy ending after the hacker returned all the funds. PolyNetwork got into action to get the platform’s functionality back to normal. It resumed cross-chain functionality for a number of tokens after it was shut due to the exploit.

Source: PolyNetwork

The project now aims for a fresh beginning and promised to enhance its safety measures. The protocol has also unlocked the USDT frozen by Tether and completed the USDC fund recovery. It is to be seen whether the hacker accepts PolyNetwork’s request to join as the chief security advisor.

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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