Poloniex to restore services following $114 million hack

abdelaziz Fathi

Cryptocurrency exchange Poloniex, owned by entrepreneur Justin Sun, has unveiled plans to restore operations after a major hack that drained its hot wallets on November 10.

Justin Sun

According to an official announcement, the platform has made progress in its recovery efforts and is now running smoothly.

The breach, causing an estimated loss of around $114 million, prompted Poloniex to initiate different restoration procedures. The latest update indicates advancements in service restoration, with a focus on reinstating deposit and withdrawal services for users.

Poloniex has engaged a top-tier security auditing firm to bolster its security measures, adding that efforts are actively underway to strengthen the platform’s security before reactivating withdrawals. Though the evaluation process is ongoing, completion is expected in the imminent days.

Assuring users of progress in restoration, Poloniex said it’s working to fortify its platform’s resilience and security measures against future breaches.

The breach resulted in the draining of Poloniex’s hot wallets, with more $100 million worth of tokens sent from the exchange’s Ethereum and Tron wallets across various transactions, according to on-chain data.

Poloniex, established in 2013 and later acquired by Circle in 2018, had several investors including Justin Sun in 2019. Despite the breach, Poloniex maintains its position as a top exchange, having facilitated $616 million worth of trading volume over the last 24 hours, according to CoinMarketCap data.

Cryptocurrency exchanges, frequently targeted by hackers, have witnessed similar incidents in recent months, including hacks on HTX, Bitrue, Gdac, and Deribit, resulting in massive losses.

Justin Sun, also the founder of Tron, offered the hackers a 5% ‘white hat bounty’ with a seven-day deadline to return the stolen funds before involving law enforcement. He provided crypto wallet addresses for the hackers to return the stolen coins.

Earlier this year, the US affiliate of Poloniex paid $7.59 million to settle its civil liability for violations of US sanctions on certain countries. OFAC’s investigation found that Poloniex LLC conducted roughly 66,000 transactions valued at more than $15 million. Between January 2014 and November 2019, the crypto trading platform violated multiple regulations, including those prohibiting US companies from doing business with individuals operating in Iran, Sudan, Syria, Cuba and the Crimea region of Ukraine.

Justin Sun was also charged by the US Securities and Exchange Commission with market manipulation, fraud, and other offenses. Additionally, eight celebrities, including actress Lindsay Lohan and rapper Soulja Boy, have been accused of unlawfully promoting Sun’s crypto assets.

Read this next


Top Crypto Highlights for Q2 2024: BlockDAG’s Astonishing 1120% Growth Compared to Solana’s Surge and Toncoin’s Market Triumph

Explore the latest highlights in cryptocurrency: Solana’s recovery, Toncoin’s record levels, and the rise of BlockDAG’s innovative technology.

Digital Assets

Ripple seeks $10 million penalty citing Terraform fine in SEC case

Ripple Labs wants to reduce the financial penalties proposed by the U.S. Securities and Exchange Commission (SEC) by leveraging recent fines imposed on Terraform Labs.

Digital Assets

Swiss regulator shuts down CoinShares’ partially-owned FlowBank

Switzerland’s financial regulator, FINMA, has closed FlowBank SA and placed it into bankruptcy due to severe breaches of capital requirements and other supervisory laws. This follows a series of enforcement actions against the bank that began in October 2021.


Presale Power Players: 5 Crypto Presales Primed for Success in 2024 According to Experts

Unlock the potential of the best presale cryptos available now. See why experts recommend BlockDAG, Bitbot, eTukTuk, 99Bitcoins Token, and ButtChain.

Executive Moves

Paxos axes 65 jobs, cuts headcount to below 300

Stablecoin issuer Paxos has laid off 65 employees, equating to 20% of its staff, despite maintaining a robust financial standing.

Institutional FX

US sanctions trigger major shifts in Russian FX market, says Sergey Romanchuk

The U.S. sanctions imposed on June 12 against the Moscow Exchange and its clearing entity, the National Clearing Center (NCC), are set to cause massive disruptions in the Russian currency market, according to FX industry veteran Sergey Romanchuk.


BlockDAG’s X1 Miner App Beta Sparks $49.2M Presale Rise; Uniswap & XRP Whales Getting Involved?

Experience BlockDAG’s meteoric 1120% presale rise, Uniswap’s UNI climbing 18%, and Ripple’s XRP anticipating ETF approval. Explore their latest breakthroughs!

Market News, Tech and Fundamental, Technical Analysis

GBPUSD Technical Analysis Report 13 June, 2024

GBPUSD currency pair can be expected to fall further toward the next support level 1.2700, which has been reversing the price from last month.

Institutional FX

U.S. sanctions halt dollar and euro trading on Moscow Exchange

New U.S. sanctions against Russia have led to the immediate suspension of trading in dollars and euros on the Moscow Exchange (MOEX), the country’s largest exchange group.