Poloniex, one of the leading cryptocurrency exchanges, has declared its imminent resumption of operations after a recent hacking incident that resulted in gigantic outflows of funds from the platform. The information was confirmed in an official announcement by the exchange’s owner, Justin Sun.
The battered Poloniex is back in business
After several days of intensive repair work, the company announced that most of the reconstruction activities have been successfully completed. In the latest of its official updates, Poloniex noted that the platform is now operating smoothly.
“Currently, our platform is running smoothly,” the exchange announced, pointing to the involvement of top-tier auditing firms in enhancing the security level of funds placed on Poloniex. On this occasion, there was also information about plans to resume the withdrawal service, which has been suspended until now. Its launch, however, will depend on the duration of security audits. These, in turn, may take a few more days.
The incident, which took place on November 10, was a painful blow to Poloniex. Attackers managed to steal a minimum of $100 million from the exchange, in various cryptocurrencies. Immediately after detecting the disturbing activity, the Poloniex team shut down the wallet to minimize losses. An expert from blockchain security firm CertiK suggested that the incident may have resulted from a so-called “private key compromise.”
A series of problems for Poloniex
Justin Sun, the current owner of Poloniex, came out in support of the exchange’s agitated users, reporting on the steps being taken and assuring that Poloniex is working to fully return the funds affected by the attack. Sun also stressed the exchange’s financial stability and the efforts being made in cooperation with other platforms to recover lost funds.
Poloniex’s bad streak continues. The previous time the platform was in the limelight was when it came under the spotlight of regulators. The result was that in 2023 the exchange agreed to pay $7.6 million as a settlement for more than 65,000 violations of multiple sanctions programs. Although Poloniex decided to bear responsibility for its actions, its good image was badly damaged.
Who attacked Poloniex?
Recent events related to Poloniex have fueled voices suggesting regulation of the cryptocurrency market. However, it is not clear whether new regulations would be able to ensure the safety of funds placed on exchanges. This becomes especially difficult when hackers act in an organized manner. We are talking about a group of attackers here, as once again the traces left behind suggest that the North Korean Lazarus group may be behind this attack. If you want to learn more about it, we encourage you to read one of our recent articles, under the title: “Government-backed North Korean hacking group amasses millions in cryptocurrencies.”