A recent report by popular blockchain investigator PeckShieldAlert revealed that the notorious Poloniex hacker transferred 501 BTC, worth approximately $32 million, to three new wallet addresses in an attempt to conceal the origin of the stolen funds. The largest Bitcoin transaction involved the transfer of 486.62 BTC, while two smaller amounts of 10 BTC and 5 BTC were also moved to new addresses. The incident traces back to a hot-wallet hack on the Poloniex exchange in November, resulting in a loss of over $33 million. PeckShieldAlert had initially reported the hack and informed the exchange, leading to further insights from other analysts regarding the thief’s actions and the stolen assets, including ETH and LINK coins.
Subsequently, Lookonchain analysts disclosed that the Poloniex hacker attempted to launder the stolen funds by exchanging them for ETH and TRX. By November 18, 2023, PeckShieldAlert reported that Poloniex was aware of the hacker’s identity and was collaborating with law enforcement agencies in China, Russia, and the US. In an effort to recover the stolen funds, a white hat bounty of $10 million was offered to the perpetrator. Despite these efforts, Poloniex has been unsuccessful in recovering the funds, with the recent BTC transfer by the hacker raising concerns about attempts to conceal transaction trails and possibly liquidate the funds in the future.
In a separate development, a recent report by blockchain security firm Immunefi highlighted that the cryptocurrency industry lost over $200 million to 32 hacks and rug pull incidents in the first two months of 2024. This represented a 15.4% increase compared to the same period in the previous year. However, there was a 23% decline in losses associated with hacking and scams in the first quarter of 2024 compared to 2023, with approximately $336.3 million lost to hacking and fraud incidents in Q1 2024, down from $437.5 million in the same quarter of 2023. The report identified 46 hacking incidents and 15 fraudulent activities, with major projects such as Orbit Bridge and Munchables suffering the largest losses.
Immunefi further emphasized that decentralized finance (DeFi) platforms were the target of all exploits identified in Q1 due to their significant total value locked in Web3 protocols, making them lucrative targets for bad actors. The increase in hacking incidents and the significant losses suffered by projects in the cryptocurrency industry underscore the importance of robust security measures and continued vigilance to protect assets and prevent fraudulent activities. As the industry continues to evolve and grow, it is crucial for companies and individuals to prioritize security and implement best practices to mitigate the risks associated with potential hacks and fraud in the digital asset space.
