- With the advancement of technology, the way we transact has also changed. You must be aware of transactions made in cash, coins, or gold. You must also be aware of virtual money which has become increasingly popular as a tool of transaction in recent years. As with other currencies, cryptocurrencies are also vulnerable to attacks by criminals, in this case, cybercriminals. The internet is filled with hackers who literally cash in on the vulnerabilities in the system.
- If you are a cryptocurrency enthusiast, you should read on as we explain the latest and the most horrendous Bitcoin cryptocurrency heist of all time.
- In this post, we will cover the latest bitcoin cryptocurrency heist, the company that was the victim of the cyberattack, how hackers stole the digital currency, what happened to the money that was stolen, who the hacker was, and how you can be safe from such attacks.
How did the biggest Bitcoin heist happen?
The most dreadful Bitcoin heist happened this Tuesday when hackers robbed $613 million dollars’ worth of digital money from Poly Network, a cryptocurrency platform. Although there is a twist and that is, the hackers went ahead and returned $260 million dollar worth of digital money within a day of the heist. In this post, we have covered every detail related to the heist.
Who was the victim of the biggest Bitcoin heist?
If you already transact in bitcoins and are aware of peer-to-peer transactions, you must have heard of Poly Network, a decentralized cryptocurrency platform that allows customers to transfer tokens between various blockchains.
Let us explain how Poly Network works by taking an example. For example, if you wish to transfer Bitcoins from the blockchain named Ethereum to another blockchain named Binance Smart Chain, you could use the platform, Poly Network.
Although it is difficult to know where Poly Network is based or who heads it from their website, the digital money website Coindesk, says that Poly Network was established by the founders of Neo, a Chinese blockchain project.
How was the heist carried out?
Poly Network allows the transfer of tokens between Ethereum, Binance Smart chain, and Polygon blockchains with the help of a smart contract that lists instructions on when and how to let go of assets to the co-contractors.
CypherTrace, a crypto intelligence firm throws light on one smart contract that facilitates the seamless transfer of tokens owing to its high liquidity.
Hackers had pinpointed a vulnerability in this contract, as per Poly Network’s initial investigation.
An Ethereum programmer has come up with an analysis explaining that the hackers went on to overrule the instructions given in the three blockchains, as mentioned above, and siphoned off the funds to three digital storage units or wallets addresses. Poly Network, however, could trace these wallets and they published the same.
Chainalysis, a blockchain forensics company reports that the hackers carried out the heist in not one or two but over 12 cryptocurrencies that included ether and a type of bitcoin.
As per some digital messages circulated on the Ethereum Network, a person claiming to be the hacker said that they had seen a “bug” and wanted to make use of the vulnerability before anyone else could.
What happened to the stolen digital currency?
By late Wednesday, the hackers are said to have returned back $260 million dollars’ worth of digital tokens. But the remaining tokens are yet to be recovered from the hackers with no one knowing what has been done to them.
You might ask, “Where was the money siphoned off?” Well, the hackers had tried to transfer digital tokens from one wallet to the liquidity pool, Curve.fi. What happened to the digital money stored in the other wallets? As per Coindesk, digital money worth $100 million has been taken from one more wallet and stored in the liquidity pool, Ellipsis Finance.
Who carried out the heist?
No one knows who exactly carried out the heist. However, Slowmist, a digital money security firm said that the attacker’s IP address, mailbox, and fingerprints have been recognized.
It is hard to believe the hacker, who claims to be an ethical hacker wanting to pick out the vulnerability for Poly Network. What more? They claim they had always wanted to return the money.
Experts don’t believe the above narrative as it is very unlikely of an ethical hacker to rob such a whopping amount. However, they believe the difficulty to liquidate the cryptocurrency to be one of the major reasons for returning back the money.
How to be safe?
If you are a cryptocurrency enthusiast or a Bitcoin enthusiast, you should go through the following points to ensure your safety:
1) Any firm that guarantees the doubling of money is a scam.
2) Free money is a myth.
3) Transactions should be carried on with a registered digital money exchange firm.
4) Conduct research on the firm before investing by reading the reviews.
5) Use a two-factor recognition process to keep your account safe.
User safety should be the No.1 priority!
Cryptocurrencies, including Bitcoin, are vulnerable to attacks because there is a lack of regulation when it comes to cryptocurrencies. However, to make sure cryptocurrency heists do not take place, companies should fix their bugs and work on the vulnerabilities so that hackers find it difficult to crack the code. After all, user safety should be the N0.1 priority for digital money exchange firms.