Poloniex Hack: Tron Founder Justin Sun’s Crypto Exchange Loses $100M+ in Elaborate Scheme

Poloniex, a cryptocurrency exchange owned by Tron founder Justin Sun, was hacked for over $100 million. (On November 10, 2023 ) The hack was first reported by on-chain data provider PeckShield, which revealed that over $65 million worth of assets had been stolen from Poloniex’s hot wallets.

The stolen assets included a variety of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Tron (TRX). According to PeckShield, the hackers used a variety of techniques to carry out the attack, including phishing, social engineering, and exploiting vulnerabilities in Poloniex’s security systems.

Poloniex confirmed the hack in a statement shortly after the attack was first reported. The exchange said that it was working with law enforcement and cybersecurity experts to investigate the hack and recover the stolen assets. Poloniex also said that it would be reimbursing all affected users.

In a tweet, Sun said that the exchange would be offering a 5% white hat bounty to the hacker if they returned the stolen assets. He also said that Poloniex would be taking steps to improve its security systems to prevent future attacks.

The hack of Poloniex is the latest in a series of high-profile hacks of cryptocurrency exchanges in recent years. In 2022, hackers stole over $1 billion worth of crypto assets from exchanges such as Bitmart, KuCoin, and Crypto.com.

The hack of Poloniex is a reminder of the risks associated with investing in cryptocurrencies. Cryptocurrency investors should take steps to protect their assets by using strong passwords, enabling two-factor authentication, and storing their assets in cold wallets.

Impact of the hack

The hack of Poloniex is a significant blow to the cryptocurrency industry. It is a reminder of the security risks associated with cryptocurrency exchanges and the importance of users taking steps to protect their assets.

The hack is also likely to have a negative impact on the price of Tron (TRX), the cryptocurrency of which Sun is the founder. TRX has already fallen by over 10% since the hack was reported.

It is still too early to say what the long-term impact of the hack will be. However, it is clear that the cryptocurrency industry needs to take steps to improve its security systems and protect its users from hackers.

About The Author