Poloniex, the cryptocurrency exchange compromised
for $100 million on November 10, has provided an update on its recovery
efforts. The company said that the steps to restore its operations were almost
done and that the platform was operating smoothly.

Poloniex’s team has engaged a security auditing firm
to fortify the platform’s defense. Once the audit is complete, the company will
resume deposits and withdrawals.

Poloniex’s owner, Justin Sun, has been actively
involved in addressing the aftermath of the hack. Immediately after the
security breach, Sun assured users that they would receive a full reimbursement.
He emphasized that Poliniex’s financial position had not been affected by the
hack and initiated collaborations with other exchanges to recover the lost
funds.

The security violation of Poliniex was identified by
blockchain security firms PeckShield and Cyvers. The red flags raised by
blockchain security firms forced Poloniex to disable its wallets. Sun,
Poloniex’s investor and Tron’s Founder acknowledged the breach and offered a
“white hat bounty.” to the hackers if they returned the loot.

On-chain data revealed coordinated efforts by the
culprits across various blockchains. The “Poloniex hacker” targeted
an Ethereum wallet and executed a series of transactions that drained $114
million in tokens. Simultaneously, a wallet on the Tron blockchain sent approximately
$42 million to various destinations.

Poloniex Regulatory Woes Deepen

The security incident added to Poloniex’s challenges
following a settlement of $7.6 million imposed against the crypto exchange by
the United States Treasury Department’s Office of Foreign Asset Control early
this year.

The settlement involved allegations of sanction
violations by Poloniex. The firm is accused of allowing customers from
sanctioned regions, including Crimea, Cuba, Iran, Sudan, and Syria, to engage
in digital asset trading between January 2014 and November 2019.

Poloniex, launched in January 2014, implemented
compliance measures in May 2015. However, the exchange continued to allow
existing customers from sanctioned regions to trade, even after completing
their KYC requirements.

This settlement is not Poloniex’s first encounter
with regulatory challenges. In 2021, the platform paid over $10 million to
settle charges of operating an unregistered digital asset exchange with the US
securities market regulator. The ownership of Poloniex has undergone changes,
with its current ownership structure involving a consortium of entities backed
by Justin Sun.

Poloniex, the cryptocurrency exchange compromised
for $100 million on November 10, has provided an update on its recovery
efforts. The company said that the steps to restore its operations were almost
done and that the platform was operating smoothly.

Poloniex’s team has engaged a security auditing firm
to fortify the platform’s defense. Once the audit is complete, the company will
resume deposits and withdrawals.

Poloniex’s owner, Justin Sun, has been actively
involved in addressing the aftermath of the hack. Immediately after the
security breach, Sun assured users that they would receive a full reimbursement.
He emphasized that Poliniex’s financial position had not been affected by the
hack and initiated collaborations with other exchanges to recover the lost
funds.

The security violation of Poliniex was identified by
blockchain security firms PeckShield and Cyvers. The red flags raised by
blockchain security firms forced Poloniex to disable its wallets. Sun,
Poloniex’s investor and Tron’s Founder acknowledged the breach and offered a
“white hat bounty.” to the hackers if they returned the loot.

On-chain data revealed coordinated efforts by the
culprits across various blockchains. The “Poloniex hacker” targeted
an Ethereum wallet and executed a series of transactions that drained $114
million in tokens. Simultaneously, a wallet on the Tron blockchain sent approximately
$42 million to various destinations.

Poloniex Regulatory Woes Deepen

The security incident added to Poloniex’s challenges
following a settlement of $7.6 million imposed against the crypto exchange by
the United States Treasury Department’s Office of Foreign Asset Control early
this year.

The settlement involved allegations of sanction
violations by Poloniex. The firm is accused of allowing customers from
sanctioned regions, including Crimea, Cuba, Iran, Sudan, and Syria, to engage
in digital asset trading between January 2014 and November 2019.

Poloniex, launched in January 2014, implemented
compliance measures in May 2015. However, the exchange continued to allow
existing customers from sanctioned regions to trade, even after completing
their KYC requirements.

This settlement is not Poloniex’s first encounter
with regulatory challenges. In 2021, the platform paid over $10 million to
settle charges of operating an unregistered digital asset exchange with the US
securities market regulator. The ownership of Poloniex has undergone changes,
with its current ownership structure involving a consortium of entities backed
by Justin Sun.

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