Defi Interoperability protocol Suffers $610 Million loss in Largest Defi Hack – Defi Interoperability protocol Poly Network suffered a major hack across Binance Binance Smart Chain (BSC), Ethereum (ETH), and Polygon. A total of $610 million worth of assets were transferred to three different addresses on mentioned blockchains. This could be potentially the largest defi hack in history. The previous largest crypto hack came in the form of Coincheck exchange’s $530 million loss.
We are sorry to announce that #PolyNetwork was attacked on @BinanceChain @ethereum and @0xPolygon Assets had been transferred to hacker's following addresses:
— Poly Network (@PolyNetwork2) August 10, 2021
The attack surfaced when the largest cross-chain defi protocol O3 had difficulty in processing $150 million worth of transactions. Wu Blockchain first reported the potential hack when the O3 protocol had issues processing funds worth hundreds of millions of dollars.
The Chinese community believes that this may be the largest DeFi attack in history. https://t.co/VoCt8SQsZL
— Wu Blockchain (@WuBlockchain) August 10, 2021
As per the latest update, the BSC address starting with 0x0D6e2 exceeded received $250 million, Ethernet Square address starting with 0xC8a65 saw $ 270 million transfer while the Polygon address received $ 85 million.
Both Poly Network and O3 protocol have suspended cross-chain functionalities in the wake of the hack. Poly Network has alerted exchange services to blacklist transactions originating from the hacked accounts. It also appealed to the hackers to return the fund while assuring they would take legal actions.
O3 Swap cross-chain function is currently suspended due to the Poly Network was hacked. We are in contact with the team. Please be patient to back to full functionality.
The non-cross-chain function is available and can be used normally. https://t.co/rpl9lMjaS9
— O3 Labs | We're building a cross-chain DEX! (@O3_Labs) August 10, 2021
The Hack Can Spill to Other Protocols?
The fact that hackers used O3 cross-chain protocol for transfer of funds, and Poly Network being an interoperability protocol, the hack could potentially affect other defi projects as well.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Financial Watch. Every investment and trading move involves risk. You should conduct your own research when making a decision.
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