Poloniex Hit by $114 Million Hot Wallet Heist; Justin Sun Pledges to Recover Funds

Poloniex Hit by $114 Million Hot Wallet Heist; Justin Sun Pledges to Recover Funds

Onchain data and reports have highlighted unusual outflows from cryptocurrency exchange Poloniex, prompting concerns of a possible hot wallet breach worth approximately $114 million. Justin Sun, the exchange’s proprietor and Tron’s creator, has stated that the incident is under investigation.

Poloniex’s Hot Wallets Breached in $114M Hack

The breach at the centralized digital currency platform Poloniex, which occurred on Friday, November 10, 2023, involved a suspected loss of $114 million, as noted by onchain analysts. Cyvers, a team that provides real-time blockchain security alerts, issued a warning: “Red Code: Hey Poloniex [and] Poloniex Support, you better contact us as soon as possible,” they alerted.

In response to the event, Poloniex announced on the social media platform X that it had temporarily disabled its wallet system. “Our wallet has been disabled for maintenance,” Poloniex stated. “We will update this thread once the wallet has been re-enabled.”

While the estimated losses currently stand at $114 million, the impact on a considerable number of hot wallets suggests that the total could be higher. Justin Sun informed the crypto community through the social media platform X about the breach, assuring them of Poloniex’s commitment to rectify the situation.

“We are currently investigating the Poloniex hack incident,” Sun wrote. “Poloniex maintains a healthy financial position and will fully reimburse the affected funds. Additionally, we are exploring opportunities for collaboration with other exchanges to facilitate the recovery of these funds.” Sun further added that a bounty was created, stating:

We are offering a 5% white hat bounty to the Poloniex hacker. Please return the funds to the following ETH/TRX/BTC wallets. We will give you 7 days to consider this offer before we engage law enforcement.

What are your views on the Poloniex hack and the estimated $114 million in losses? Post your comments and share your perspective on this matter below.

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