Poloniex was hacked (Security Breach Discussion)

[btc78]

Well, guys, I guess a lot of you already know this. Poloniex, aka Justin Sun's own Exchange, suffered a hack of 60M+ USD, and they are offering a 5% Bounty (if there are any white hat hackers here or do you know an interested one, here is the official announcement https://x.com/Poloniex/status/1722956238160536049?s=20).

This always happens to Justin Sun. His services get hacked, and he posts a "bounty" to try to convince the hackers to bring it back.

He's not seeing those coins again.

Are you talking about the one that happened last 2014?

it makes you think what kind of developments they have made since if even after 9 years later they got hacked again

i read that Poloniex didn’t have an exploit detection tool which could have helped them save over USD 45M
(https://cryptomaton.medium.com/poloniex-crypto-exchange-just-hacked-for-over-114-million-a-post-mortem-2484f8811b8a)

[jrrsparkles]

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Why would they give hacker anything after that? They would take the money and try to hand the hacker to police.

Yes, they are not bound by contract but its a grey area, and if the exchange use this offer as bait then surely it will backfire at them and assuming they got the hacker by tempting then surely someone from hacking community will do something for that and its known fact that hacking community can even break the most secured websites like intelligence and others to prove that they are not.

[livingfree]

Do you think that Exchanges and DeFI need more development and investments here or is this just something we have to lay down our heads and deal with?

They need to put it up at most times about these bounties for the possible security breach that a hacker may find on their system.

It's going to give the idea for that hacker that he can earn from that exploit and at the same time, he'll help the exchange. But this is all for the white and gray hat hackers.

We have to deal with these hacks and we also need to remember that every exchange can be hacked, that's why bounties like this should be like forever.

Because even known websites have a continuous bounty program for potential security breaches or holes.

[rhomelmabini]

Well, guys, I guess a lot of you already know this. Poloniex, aka Justin Sun's own Exchange, suffered a hack of 60M+ USD, and they are offering a 5% Bounty (if there are any white hat hackers here or do you know an interested one, here is the official announcement https://x.com/Poloniex/status/1722956238160536049?s=20).
On the other hand, TRX and USDD do not seem to suffer any backlash from this news.

Topic Security Breach and Protection Layers. Do you think that Exchanges and DeFI need more development and investments here or is this just something we have to lay down our heads and deal with?

I think it was still not clear if it's just $60M but potentially it could be even worse to $100M hack. I don't know if this is just for publicity stake but Poloniex has never made any headline recently but hoping that they'll get it. The whole crypto needs development and yes it's still in infancy stages so it really need one

[btcswimmer]

Getting hacked once is all right. Everyone does mistakes.
But twice? In less than 10 years?
I mean, it's a critical field, security should be the top priority. How come you be hacked twice in 10 years?

[Jating]

Topic Security Breach and Protection Layers. Do you think that Exchanges and DeFI need more development and investments here or is this just something we have to lay down our heads and deal with?

Yes and more professional ones. This happened due to a low security network of Poloniex. Probably they need to have more security protocols and not only them but a lot of exchange like Binance Kucoin, which is targeted by hackers. Obviously this is not new but considering the news it will have a great impact on market situation.

Right, the thing is that this is not the first time that they have been hack so obviously they didn't learn anything from the past and maybe they are just relaxed thinking that they could not be a target anymore. But there are a lot of groups even state sponsored hackers plying in the ecosystem. And one they case you, it will be just a matter of time before they hack the exchange in whichever means possible.

Not sure though what is the impact in the market situation. We didn't see any major downside on any top tier coins right now. So perhaps this is just a non factor and only Poloniex and it's customers and Justin are being affected. Hopefully the funds are SAFU so that those who lost their money can get it back at least.

[goldkingcoiner]

I am not surprised. This is ultimately the never-ending weakness of centralized exchanges. Of course, DeFi can be hacked as well, but leaving your wallet in the hands of a single entity is not really a better alternative. This time, Poloniex will pay the victims back, or so they say. But one day, a big enough hack could happen and nobody from Poloniex is getting their money back.

Keep your coins in your own wallets. Thats really the best option to minimize the risks.

[goaldigger]

I am not surprised. This is ultimately the never-ending weakness of centralized exchanges. Of course, DeFi can be hacked as well, but leaving your wallet in the hands of a single entity is not really a better alternative. This time, Poloniex will pay the victims back, or so they say. But one day, a big enough hack could happen and nobody from Poloniex is getting their money back.

Keep your coins in your own wallets. Thats really the best option to minimize the risks.

This is not the first time that this exchanged was hacked if I’m not mistaken and I’m really curious how much the security of this exchange because they become a victim again of the hackers. Most probably there’s an inside job here and that exchange should do their best to prevent this from happening again and assure their users that the site is still safe. Well, its not advisable to store your crypto on any exchanges at all, learn from this hacking incidents and save your crypto.

[dunfida]

Well, guys, I guess a lot of you already know this. Poloniex, aka Justin Sun's own Exchange, suffered a hack of 60M+ USD, and they are offering a 5% Bounty (if there are any white hat hackers here or do you know an interested one, here is the official announcement https://x.com/Poloniex/status/1722956238160536049?s=20).
On the other hand, TRX and USDD do not seem to suffer any backlash from this news.

Topic Security Breach and Protection Layers. Do you think that Exchanges and DeFI need more development and investments here or is this just something we have to lay down our heads and deal with?

It's a new hack right? And they hacked in the past too but I don't think they ever recovered anything from the hackers and the same goes to this as well. I want to clarify that they are offering 5% of the total hacked funds to the one who hacked as a gesture in case hacker decides to return the hacked funds but it seems they are living in a different universe to think and offer such bounty.

Not really new on which this isnt really just that limited on Poloniex when it comes to exchange hacks on which it could really be possibly to happen knowing that these place or platforms are
just like honeyspots for hackers knowing that this one involved millions of USD once they would really be able to breach out. If they've been able to experience hack in the past and now we are seeing  the same thing
then this solidly indicates that their security is simply shit. People who do make use or make those considerations are really that too dumb on trusting them again.
Remembering the days where Poloniex is indeed the best exchange platform out there before Binance come out.

Security breach kind issues in exchange platforms turns out to be not that shocking. They should really be putting that emphasis or focus that much when it comes to security
because you dont know on when those hackers would really be trying out to attack. COmpensation or 5% bounty? thats hell of a lot thing
but of course they would really be willing on giving out such amount just for that trace up.

[Altcoiner007]

Well, guys, I guess a lot of you already know this. Poloniex, aka Justin Sun's own Exchange, suffered a hack of 60M+ USD, and they are offering a 5% Bounty (if there are any white hat hackers here or do you know an interested one, here is the official announcement https://x.com/Poloniex/status/1722956238160536049?s=20).
On the other hand, TRX and USDD do not seem to suffer any backlash from this news.

Topic Security Breach and Protection Layers. Do you think that Exchanges and DeFI need more development and investments here or is this just something we have to lay down our heads and deal with?

It was HTX last time and now another exchange has now been hit. I have always ask this question; tho, not on this platform, that " what are some exchanges doing right (Bitget, Kraken, MEXC and a few others) to stay free of these security exploit incidence? can't other exchanges collaborate with some of these exchanges to strengthen there security?

Despite the fact that I also feel collaboration and more investment in security could be the way forward,  white hat bonus payment should also be discouraged cos it's one of the reasons hacking have become a tradition in this crypto space.

It appears that some cryptocurrency exchanges are viewing each other as competitors rather than business partners. This could make it difficult for them to work together to protect each other's interests in terms of security. For example, Bitget you mentioned above once partnered with COBO Superloop, an off-exchange digital asset custody provider, to ensure that their users' funds are safely stored offline. This could be an effective security measure that other exchanges could adopt, but it is unclear how they choose to operate differently.

[BitMaxz]

Why did they looking for whitehat hackers? They don't have any white hat hackers before?
It's pretty bad they already hacked in the past and now they still haven't hired any expert to protect their exchange?

What I see here is another inside job they already get enough funds to hold for the next block halving and make a profit and they are going to wait again until the price of BTC massively drops below $20k.

I had funds on Poloniex before they never sent my coins back to my wallet accessing my account again with zero balance. I never trust them because I know they are going to do this again and now it happens again just like what other exchanges or other businesses do they come back and run again(hit and run).

[wxa7115]

It appears that some cryptocurrency exchanges are viewing each other as competitors rather than business partners. This could make it difficult for them to work together to protect each other's interests in terms of security. For example, Bitget you mentioned above once partnered with COBO Superloop, an off-exchange digital asset custody provider, to ensure that their users' funds are safely stored offline. This could be an effective security measure that other exchanges could adopt, but it is unclear how they choose to operate differently.

Exchanges treat each other as competitors as that is exactly what they are, while an exchange getting hacked is bad for the credibility of this market as a whole, and it is not something we want to see, for a competitor exchange hearing about a rival exchange getting hacked is in fact a good news.

Since on the short term people will decide to avoid that exchange and they will have the chance to gain those clients, so exchanges do not have too much of a reason to support each other on their efforts to improve their security as a whole.

[Altcoiner007]

It appears that some cryptocurrency exchanges are viewing each other as competitors rather than business partners. This could make it difficult for them to work together to protect each other's interests in terms of security. For example, Bitget you mentioned above once partnered with COBO Superloop, an off-exchange digital asset custody provider, to ensure that their users' funds are safely stored offline. This could be an effective security measure that other exchanges could adopt, but it is unclear how they choose to operate differently.

Exchanges treat each other as competitors as that is exactly what they are, while an exchange getting hacked is bad for the credibility of this market as a whole, and it is not something we want to see, for a competitor exchange hearing about a rival exchange getting hacked is in fact a good news.

Since on the short term people will decide to avoid that exchange and they will have the chance to gain those clients, so exchanges do not have too much of a reason to support each other on their efforts to improve their security as a whole.

This is well explained. So all Exchanges mind their own business and if they care enough for the user's safety on their Platform, they'll on their own look for ways to boost their Exchange security. So I would say it's not wise waiting to be hacked before looking for white hackers to help see to getting funds back. Why not bankroll a number of them, as well as implement other optimized security techniques.

[ShinyStarPrincess]

It appears that some cryptocurrency exchanges are viewing each other as competitors rather than business partners. This could make it difficult for them to work together to protect each other's interests in terms of security. For example, Bitget you mentioned above once partnered with COBO Superloop, an off-exchange digital asset custody provider, to ensure that their users' funds are safely stored offline. This could be an effective security measure that other exchanges could adopt, but it is unclear how they choose to operate differently.

Exchanges treat each other as competitors as that is exactly what they are, while an exchange getting hacked is bad for the credibility of this market as a whole, and it is not something we want to see, for a competitor exchange hearing about a rival exchange getting hacked is in fact a good news.

Since on the short term people will decide to avoid that exchange and they will have the chance to gain those clients, so exchanges do not have too much of a reason to support each other on their efforts to improve their security as a whole.

Indeed competition, but I guess the exchanges in come way know that if others keep falling is not good for them in the long term. On the other hand, CEX as DeFI should look at what types of attacks and hacking happened to keep an eye on how to avoid it in the past. Hacking will happen always it will never fade.

PD: Again a white ethical hacking is mandatory for any project as well as a good Lawyer one for any financial company

[nelson4lov]

The fact that two of Justin Sun's products — poloniex and Houbi exchange have had security breaches which isn't pleasant to hear. If I was a user of any of these exchanges, I doubt that I would want to try out any of Justin powered operations in the near future as these hacks that all occurred in the same year is a testament of how serious their security game — I know the security game is hard and no system is 100% safe from hack but still, if it's too easy, that's a problem for users. They might refund affected users but there's a point they can't refund if it becomes a normal occurrence.

[el kaka22]

This is a huge one, but it also begs the question, how did 60 million dollars was at a place that was easily accessible by a hacker. I mean there shouldn't be that much money in the hot wallet, which means that its going to be a tough pill to swallow for them but something they could learn from.

A 5% return would be 3 million dollars, and the yare not like asking it to people, they are asking the person who stole the money to bring it back. So, you either get 3 million clean money, or you get 60 million dirty money.

Anyone who has gone enough far to just hack it on an exchange and steal 60 million dollars would be a black hat hacker anyway and I do not see them giving that much money away to clear their name and give 57 back. That should be a priority of them to offer a bounty like that before any of this happens, so people could show them what's wrong, if you do not do that then you are going to get attacked by people. At least they learned a very expensive lesson, if they survive this then they should be able to protect their money better.

[devil-soul]

It is not the first time this has happened, fortunately poloniex will compensate the users involved, they should invest more in security measures, no exchange is 100% safe

[The Cryptovator]

Hacking cryptocurrency exchanges isn't something new; even top security exchange Binance gets hacked sometimes. No doubt, Exchange should focus on finding a security solution to prevent scams. But the problem is that hackers always try to break exchange security. When exchanges improve their security, hackers will find something to break it. So it's better to implement our own security system, I mean secure our funds. I am talking about don't store cryptocurrency in exchange. When you buy something, just move it into a non-custodial or hardware wallet. So it doesn't affect us when centralised exchanges get hacked.

[MarvieJ]

Topic Security Breach and Protection Layers. Do you think that Exchanges and DeFI need more development and investments here or is this just something we have to lay down our heads and deal with?

Yes and more professional ones. This happened due to a low security network of Poloniex. Probably they need to have more security protocols and not only them but a lot of exchange like Binance Kucoin, which is targeted by hackers. Obviously this is not new but considering the news it will have a great impact on market situation.

As you have said truly no exchange is beyond hack but in the past I think I have heard about poloniex hack , happening again means they’ve got a weak security. Handling our assets they should tighten security am sure hackers will be targeting other cex like binance or even Bitget but seems unsuccessful coz they have tight security

[Lambaz]

Please is this a new hack? I thought they were recently hacked and the hacker agreed to the 5%bounty. This hacking is just getting too much