Poloniex Crypto Exchange Gears Up for Resumption After $100M Hack

Poloniex, the cryptocurrency exchange owned by Justin Sun, is on the verge of resuming operations following a significant hack on November 10, according to an official announcement posted on November 15. The platform, which suffered a $100 million security breach, stated that it has “mostly completed” restoration efforts and is now operating smoothly.

In its latest update on the resumption of deposit and withdrawal services, Poloniex revealed that it has engaged a “top-tier security auditing firm” to bolster fund security. The exchange is currently in the final stages of security audit and verification processes. Once these are successfully completed, Poloniex plans to promptly resume deposit and withdrawal services on its platform.

The evaluation process is still ongoing, with the firm estimating that it will take several more days before completion. Poloniex emphasized its commitment to ensuring a secure environment for its users and addressing the aftermath of the security breach.

Poloniex faced a major security incident on November 10, during which attackers managed to steal at least $100 million in cryptocurrency. In response, the Poloniex team disabled the wallet after detecting suspicious outflows. Blockchain security firm CertiK suggested that the incident was likely a result of a “private key compromise.”

Justin Sun, the owner of Poloniex, took to social media shortly after the incident, assuring users that investigations were already underway. Sun pledged to fully reimburse affected users, asserting that Poloniex maintains a healthy financial position. He also expressed intentions to collaborate with other exchanges to recover the lost funds.

This recent hacking incident adds to Poloniex’s history of regulatory challenges. In early 2023, the exchange agreed to a $7.6 million settlement with the United States Treasury Department’s Office of Foreign Asset Control, resolving over 65,000 apparent violations of multiple sanctions programs. As Poloniex works towards restoring its services and implementing enhanced security measures, the crypto community remains vigilant amid the ongoing challenges faced by cryptocurrency exchanges.

By Urik

My professional background is in public relations and I am the founder of Cryptochating. My journey into blockchain technology started four years ago, and I haven't looked back since then. The future of decentralized technology is incredibly fascinating to me, and I am passionate about communicating how it will change the world.

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