Poly Network, the cryptocurrency platform that lost $610 million (approximately Rs. 4,530 crores) in a hack earlier this week, confirmed Friday that it had offered the hacker or hackers a $500,000 (approximately Rs. 3.7 crores) “bug bounty”. .
In a statement, it thanked the hacker — calling it a “white hat,” industry slang for an ethical hacker who generally exposes cyber vulnerabilities — who had returned most of the money for “helping us improve Poly Network’s security.” .
The network also said it hoped “Mr. White Hat” would contribute to the further development of the blockchain sector in accepting the $500,000 (approximately Rs. 3.7 crores) reward it had offered as part of negotiations on the return of digital currencies.
The statement did not specify the form in which it would pay the $500,000 (approximately Rs. 3.7 crores). It said the hacker had responded to the offer, but did not say whether it was accepted.
On Thursday, digital posts shared on Twitter by Tom Robinson, chief scientist and co-founder of crypto-tracking company Elliptic, showed that a person who claimed to have committed the hack had said that Poly Network had offered him the bounty to recover the stolen return assets.
A lesser known name in the world of crypto, Poly Network is a decentralized finance (DeFi) platform that enables peer-to-peer transactions with a focus on allowing users to transfer or trade tokens across different blockchains. .
The as-yet-unidentified hacker or hackers appear to have exploited a vulnerability in the digital contracts Poly Network uses to move assets between different blockchains, according to blockchain forensics firm Chainalysis.
According to Friday’s statement, the hacker returned $340 million (approximately Rs. 2,520 crores) in assets and transferred most of the rest to a digital wallet jointly operated by them and Poly Network.
The rest, held down, were frozen by the cryptocurrency company behind the stablecoin.
“Following communication with Mr. White Hat, we have also come to a more complete understanding of how the situation has evolved and of Mr. White Hat’s original intent,” the statement said, without providing further details.
Poly Network announced the hack on Tuesday, but said the next day that the hackers had started returning the digital coins they had stolen.
The hackers said in digital messages shared by Elliptic that they committed the attack for fun and that the plan was always to return the tokens.
However, some blockchain analysts have speculated that they may have found it too difficult to launder stolen cryptocurrency on such a scale.
© Thomson Reuters 2021