It is not clear on the PolyNetwork website who runs the protocol, which governs the transactions that run in the application. The DeFi world has gained popularity in recent years in the wake of a boom in the development of applications that allow people to trade, borrow, and lend funds to each other without intermediaries.
Security researcher SlowMist said it found the email, IP address and fingerprints of the attacker’s device, the team reported on Twitter. He added that “this is likely to be a long-planned, organized and prepared attack.” Crypto exchanges, including Binance, are involved in helping PolyNetwork, Binance CEO Changeng Zhao said on Twitter.
“The hacker has started using decentralized exchanges to convert stolen assets into other assets, including stablecoins,” Ellitic co-founder Tom Robinson said in an email. “In theory, issuers can confiscate tokens like stablecoins, also known as ‘stablecoins,’ which could lead to them being returned to their rightful owners. However, this is not possible for stolen ether, although it is possible to seize these funds if they are sent to a centralized exchange for collection ”.
DeFi applications that attract billions in investor funds have also become frequent targets of attack. This year, DeFi-related attacks accounted for more than 60% of total crypto attack and theft volume, up from 20% in 2020, according to crypto security company CipherTrace. At $ 156 million, the net number of DeFi-related attacks in the first five months of 2021 already exceeds the $ 129 million stolen throughout 2020, CipherTrace said.
Roughly $ 80 billion is locked into DeFi apps, making them an attractive target, according to tracker DeFi Pulse.