PolyNetwork Hackers Crushed $34 Billion in Tokens
Date: 2023-07-03 Author: Karina Ziganova Categories: IN WORLD
Attackers can't withdraw tokens due to Metis' lack of liquidity
Although hackers have minted billions of dollars worth of tokens, the amount they can cash out is likely much less. After details about the exploit appeared on the network, Metis DAO reported that Metis did not have enough liquidity to sell BNB and BUSD minted by the attackers.
Despite the scale of the event, the DAO has assured users that their funds on Metis Andromeda are safe. The organization also revealed that all minted METIS tokens are locked on BNBChain PolyNetwork and have limited liquidity.
Binance CEO Changpeng Zhao also commented on the incident. He stated that the exchange's security team is assisting Poly in the investigation.
While PolyNetwork, Metis and other affected projects are trying to freeze the created assets, hackers are quickly selling everything they can. LookOnChain reported that the attackers have already exchanged some of the tokens for ETH in an attempt to preserve liquidity.
This is not the first time PolyNetwork has been attacked
Today's attack is not the first in PolyNetwork's history. A similar exploit occurred in August 2021. Then hackers used the protocol to move tokens worth $610 million.
The Poly team asked users to help them track and freeze stolen assets. Several key participants in the crypto market came to the aid of the project: Tether, for example, froze USDT worth $33 million.
Six days after the attack, the hackers announced that they had been planning to return the tokens all this time. They argued that the purpose of the theft was to identify vulnerabilities and improve the security of PolyNetwork.
