Justin Sun’s Poloniex Suffers $126 Million Exploit

News shared by a Korean media outlet reveals another Justin Sun-affiliated crypto platform suffered a breach with a hundred-million-dollar loss. The unfortunate incident prompted an industry-wide response with Sun indicating that Poloniex would team up with other crypto exchanges to recover the stolen funds.

Poloniex, a Justin Sun-owned crypto exchange, has lost crypto assets worth more than $126M following a ‘hack incident’ in one of its wallets. Peckshield, a blockchain security company, was the first to flag the transfers. 

MetaMask Swapping Feature Utilized to Channel Loot From Poloniex

Additionally, Etherscan, a blockchain explorer, indicates a pattern of transfers from the ‘Poloniex 4’ wallet to the hacker’s wallet, including TRON, ETH, TUSD and USDT stablecoins, and FLOKI, PEPE, and SHIB meme coins.

The case is not exclusive to Ethereum. More blockchain information gathered by Arkham Intelligence reveals the theft of more than 288 million in TRX, Tron’s native token, and 865 Bitcoin. This brought the total to more than $126M. 

A closer look at the hacker’s activity shows that after sending assets to one of the attacker’s wallets, they are later transferred to another one prior to the assets being exchanged for mainly USDC using Metamask’s swapping feature.

Nevertheless, there is an instance involving the hacker appearing to have made an error in at least one transaction. In this case, they sent stolen Golem (GLM) tokens worth $2.5M to the token contract instead of the secondary addresses. Recovering this sum will be impossible.

An earlier tweet from the crypto exchange’s client support account claimed its wallet’s disabling was due to maintenance. The threat would be revised after the wallet’s re-enabling.’

Poloniex Crypto Exchange Assures to Return Stolen Funds

After the incident, a Twitter post indicated that the exchange was ‘presently probing the hack occurrence.’ It added that the exchange would leverage its strong financial position to refund all affected funds.’’

Besides, the tweet revealed that the exchange was partnering with other exchanges to ‘’ensure the appropriated funds recovery.’’ Officer Notes, a security researcher, informed a local media outlet and claimed the hack could be associated with malware, private keys, or social engineering. 

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