By Hajira Khota
13:08:2021

While hundreds of thousands of investors were trying to figure out what happened to their money after investing in the failed crypto scam Mirror Trading International, a much larger crypto vanishing act was going on with almost no one paying attention.

In what is believed to be one of the largest cryptocurrency thefts ever, hackers have returned roughly half of the $230 million they took. The hackers took advantage of a flaw in Poly Network, a technology that allows users to trade tokens between multiple blockchains. They said it had been hacked and demanded that the stolen cash be returned, threatening legal action if they did not. As a result, investors won’t simply transfer their tokens to another blockchain to trade or use as security for another investment.

In an interview with Radio Islam International, Bitcoin Ambassador for South Africa, Lorien Gamaroff, a blockchain is a digital record that serves as the foundation for numerous cryptocurrencies. Each digital coin has its blockchain, which is distinct from the rest. Poly Network promises to be able to connect all of these different blockchains.

The Poly Network assault comes as decentralised finance (DeFi) losses have reached new heights due to theft, hacking, and fraud. The crimes highlighted the hazards of the largely unregulated industry and may attract authorities’ attention. PolyNetwork announced the news with tweets, urging crypto networks to prohibit the attackers and begging the hackers to restore the funds.

Defi systems allow parties to make transactions directly without traditional gatekeepers such as banks or exchanges, generally in Bitcoin. Over the last year, the industry has exploded, with platforms currently processing more than $80 billion in digital currencies. Defi proponents claim that it provides free access to financial services to individuals and companies, claiming that the technology would reduce costs and promote economic activity. However, technological faults and holes in their computer programming may expose them to hacking.

According to Chainalysis, a blockchain forensics firm, the hackers took advantage of a flaw in PolyNetwork’s digital contracts to shift assets across blockchains.

The crimes highlighted the hazards of the largely unregulated industry and may attract authorities’ attention. Given that the attractiveness of cryptocurrencies is anonymity and lack of regulation, more attention will now be paid to what happens with the stolen funds.

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