Poloniex Close to Restoring Full Operations After $125M Hack

The Poloniex exchange will complete final security checks before resuming normal operations.

Two accomplices working on taking digital money.
  • Poloniex will resume normal operations shortly.
  • The exchange is waiting for the completion of final security checks.
  • Some Poloniex customers have voiced frustration over delays.  

Cryptocurrency hacks continue to hinder mainstream adoption and trust in the nascent asset class. The pseudonymous and digital nature of crypto has left exchanges vulnerable to cybercriminals, with billions lost in heists over the years. The Poloniex exchange is the latest victim, which saw an estimated $125 million stolen in an attack on November 10.  

The exchange locked down its operations, including suspending deposits and withdrawals, in response to the security breach. However, in an update shared with the community on Wednesday, the exchange stated that it is close to resuming normal operations.

Poloniex to Resume Normal Business Soon

In an update posted on Wednesday, Poloniex assured users that restoration efforts are nearing completion following the security breach last week. However, the exchange intends to complete a security audit before resuming normal operations, including the re-opening of deposits and withdrawals.

Sponsored

Currently, they are in the final stages of the security audit and verification processes for Poloniex. Upon completion of the audit, we will promptly resume deposit and withdrawal services on our platform,” stated Poloniex.

The suspension of withdrawals following the attack has been a nerve-wracking situation for Poloniex customers, with multiple instances on social media of users voicing frustrations over having funds stuck on the platform. Although the Wednesday update did not give a specific date for re-opening withdrawals, it did give an estimation of “several more days” until full service is resumed.   

For now, Poloniex customers remain unable to access their funds as the investigation and security overhaul continue after the $125 million crypto heist.

Unspecific Amount in Stolen Funds Recovered

Last week’s security breach at Poloniex resulted in an estimated loss of $125 million across multiple blockchain networks, according to security firm PeckShield. Initial estimates at the time of the hack pegged the loss at $100 million. However, the exchange has yet to confirm the exact amount stolen, leaving the community to speculate on the true figure.

Shortly after the incident, Poloniex owner Justin Sun stated on Twitter that affected users would be fully reimbursed by the exchange, which maintains adequate financial capacity to cover the losses. He also mentioned that Poloniex had reached out to other exchanges in a bid to recover the stolen funds.

Sun later announced that the Poloniex team had successfully identified and frozen some of the stolen assets, reiterating that the losses were within “manageable limits” and could be covered by Poloniex’s operating revenue, though the exact amount frozen was not specified.

On the Flipside

  • Poloniex has not been forthcoming with official disclosures, such as the vulnerability that enabled the breach and the amount stolen.
  • Multi-million dollar hacks are so frequent in crypto they have become normalized and expected.
  • While Poloniex’s $125 million loss stands as a significant breach, it pales in comparison to the staggering $625 million stolen from the Ronin bridgeAxie Infinity heist.

Why This Matters

The recent Poloniex breach serves as a stark reminder of the challenges facing widespread cryptocurrency adoption. Rebuilding trust after a security incident is no easy task, and the damage to a platform’s reputation can be lasting. 

In the ever-evolving landscape of online security, hackers constantly refine their methods, playing a perpetual game of cat and mouse. As a result, achieving complete safety in the crypto world remains an elusive goal.

Learn more about the Poloniex hack and subsequent exchange lockdown here:
Justin Sun’s Poloniex Disables Wallets to Tackle $100M Attack

Find out about friend.tech’s dwindling on-chain metrics here:
Friend.tech Hype Fizzles to Crawl, Daily Transactions Vanish

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Samuel Wan

Samuel Wan is a finance professional turned crypto journalist, known for his insightful reporting on market trends, regulatory changes, and technological developments within the digital asset industry. His ability to simplify complex concepts and report the facts has made him a trusted source in the crypto community. Beyond his writing, Samuel is an active mountain biker and gamer.