According to a blog post from the DeFi project, the Poly Network drama appears to be over, as the hacker has returned the remaining $141 million.
The ‘Full Asset Restoration’ Process Begins
According to the announcement, Mr. White Hat gave his private key to the 3/4 multi-signature wallet in an embedded message at 8:39 AM UTC, retrieving the remaining 28,853 ETH and 1,032 WBTC (Wrapped BTC) and giving Poly Network the green light to return full asset control to users.
The team had to check to see if the private key was genuine, which it was. As a result, the 610 million USDT stolen on August 10th have been fully restored to the network (this does not include the frozen 33 million USDT, which the protocol is attempting to resolve by contacting Tether directly).
“The team has verified that the private key is genuine and operational. Poly Network has now reclaimed control of the $610 million (excluding the frozen $33 million USDT) in assets that were affected by this attack. We would like to thank Mr. White Hat once more for keeping his promise, as well as the community, partners, and various security agencies for their assistance.”
The Poly Network Drama Comes to an End
The hacker discovered a flaw in Poly Network’s smart contract and proceeded to exploit the protocol on Binance Smart Chain, Ethereum, and Polygon, stealing over 600 million in BNB, ETH, USDC, and a few other coins such as DAI, UNI, and SHIB.
This is technically the largest heist in DeFi history. The strange twist is that the attacker turned out to be a white-hat hacker – or so it appears – and returned the funds.
Other hacks were relatively minor, such as Meerkat Finance, which rug-pulled its investors and stole $30 million on March 4th.
How to Defend Yourself Against DeFi Attacks
It is difficult to be completely secure when discussing decentralized finance, which is regarded as the wild west of crypto. When compared to antiquated traditional banking and financial systems, DeFi undoubtedly provides numerous advantages. However, there are numerous obstacles that prevent it from becoming a trusted global financial ecosystem open to all.
Hacks, rug pulls, and scams are likely to continue (and even increase in frequency) in the future, so the best team to do is DYOR (Do Your Own Research) to protect yourself from losing money.