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<\/p>\nPoloniex, a well-established centralized cryptocurrency exchange, has seemingly suffered a security breach affecting one of its primary wallets, tagged by Ethereum blockchain explorer Etherscan as \u201cPoloniex 4.\u201d The theft is marked by suspicious outflows of over $60 million.<\/p>\n
According to data from the Ethereum blockchain, Poloniex\u2019s wallet has seen a massive outflow in various cryptocurrencies to an address now tagged as \u201cPoloniex Hacker 1.\u201d Data from that wallet suggests the hacker siphoned over $63 million from Poloniex onto their wallets, but new outflows are being monitored.<\/p>\n
Poloniex has moved to temporarily disable the compromised wallet and started to conduct maintenance in a bid to prevent further unauthorized transactions. The cryptocurrency trading platform has said it will update users on the situation in the near future.<\/p>\n
The security breach was seemingly first spotted by crypto security firm Peckshield, which on social media asked the exchange to look into outflows from its Poloniex 4 wallet.<\/p>\n
Poloniex has been a key player in the crypto exchange market since its inception in 2014. The platform underwent a significant change in ownership over time, first being sold to Circle in 2018 for a reported $400 million, before it was in 2019 when acquired by Justin Sun, the founder of the cryptocurrency platform Tron.<\/p>\n
On the microblogging platform X (formerly known as Twitter), Sun noted that the incident is being investigated and added that Poloniex \u201cmaintains a healthy financial position and will fully reimburse the affected funds.\u201d<\/p>\n
Sun added that Poloniex is \u201cexploring opportunities for collaboration with other exchanges to facilitate the recovery of these funds.\u201d<\/p>\n
Notably, the price of TRON\u2019s native token TRX surged over 8% after the cryptocurrency exchange hack was revealed.<\/p>\n
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The hacker, according to various users on social media, has started using some of the hacked funds to create a short squeeze on the price of TRX, leading to the price surge. The hacker still has millions worth of TRX.<\/p>\n
UPDATE: Sun has since offered the hacker a bug bounty reward of 5% of the stolen funds, giving them seven days to consider the offer before engaging with law enforcement.<\/p>\n