Tuesday, June 18, 2024
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Poloniex Loses 577 Billion SHIB To Security Breach

In a shocking incident that has sent shockwaves through the cryptocurrency community, Poloniex, one of the leading cryptocurrency exchanges, has fallen victim to a major security breach.

The audacious cybercriminals behind the attack managed to make off with a jaw-dropping $114 million worth of various cryptocurrencies, dealing a severe blow to the exchange and its users. Among the stolen assets are a staggering 577 billion SHIB, 32.7 million USDT, 443 Bitcoin, and 6,103 ETH.

Read Also: Hackers Infiltrate Poly Network, Mints Over 999 Trillion Shiba Inu (SHIB) Tokens: Details

Swift Conversion Raises Concerns

The swift conversion of the stolen tokens into ETH has raised concerns about the extent of the attackers’ knowledge and expertise. Their ability to quickly swap the pilfered tokens suggests a deep understanding of the exchange’s intricate systems or the existence of a critical vulnerability within Poloniex’s security infrastructure.

Justin Sun Offers Bounty for Return of Funds

Justin Sun, the CEO of Poloniex, who is also the founder of Tron (TRX), has publicly announced a 5% bounty to the cybercriminals, urging them to return the stolen funds. This unprecedented gesture highlights the seriousness of the situation and the determination of Poloniex to recover the assets.

Sun has given the attackers a seven-day window to accept the offer, after which he plans to collaborate with law enforcement agencies to bring them to justice.

The Poloniex security breach serves as a stark reminder of the inherent risks associated with centralized cryptocurrency exchanges.

While these exchanges offer convenience and liquidity, they also present a single point of failure. If malicious actors manage to breach the security systems of a centralized exchange, the potential for substantial financial losses is significant.

Crypto users are urged to take proactive measures to protect their assets in light of this incident.

One approach is to explore decentralized exchanges (DEXes), which operate on a peer-to-peer basis, eliminating the need for users to deposit their funds into a centralized custodial wallet.

By decentralizing the exchange process, DEXes mitigate the risks associated with potential security breaches.

Read Also: Shiba Inu Team Announces Shibarium Hackathon with $5,000 Grand Prize. Here’s How to Qualify

Another crucial security measure is the use of hardware wallets, physical devices designed to store cryptocurrencies offline. By keeping digital assets offline and out of the reach of hackers, hardware wallets provide an additional layer of protection that is highly resilient against hacking attempts.

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The Poloniex security breach serves as a resounding wake-up call for the entire crypto industry. It underscores the need for robust security practices and heightened awareness of the risks involved in centralized exchanges.

Crypto users must remain vigilant and take proactive steps to safeguard their assets by embracing decentralized exchanges and leveraging the added security provided by hardware wallets.


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Adedoyin Aka
Adedoyin Aka
Adedoyin is a graduate of Law and a Crypto & Blockchain expert who strongly believes that Blockchain is the future. At TimesTabloid, she focuses on crypto and blockchain educational content.
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