PolyNetwork has been breached once again
In a recent crypto hack, the attackers exploited a smart contract function in PolyNetwork’s bridge tool, a cross-chain protocol, resulting in the issuance of billions worth of various tokens. The attackers manipulated the bridge to create tokens that didn’t actually exist on certain networks.
The attackers minted large quantities of tokens, including 24 billion BUSD and BNB on the Metis blockchain, 999 trillion SHIB on the Heco blockchain, and millions of other tokens on different networks like Avalanche and Polygon. This initially gave the attackers’ wallet a value of over $42 billion in tokens. However, these assets are considered “worthless” as they lack liquidity, according to SlowMist, the founder of a Web3 security company.
The lack of liquidity prevented the attackers from monetizing most of the tokens. Confirmation was received from developers that there was no liquidity for selling BNB and BUSD tokens, and the METIS tokens that were generated unlawfully were locked within the PolyNetwork bridge.
Nevertheless, the attackers managed to find liquidity for some of the tokens and exchanged 94 billion SHIB tokens for 360 ETH, 495 million COOK for 16 ETH, and 15 million RFuel for 27 ETH, as reported by analytics firm Lookonchain.
Lookonchain also observed the hackers transferring assets and ETH to new wallets, presumably for the purpose of selling them.
The lack of liquidity prevented the attackers from monetizing most of the tokens. Confirmation was received from developers that there was no liquidity for selling BNB and BUSD tokens, and the METIS tokens that were generated unlawfully were locked within the PolyNetwork bridge.
Nevertheless, the attackers managed to find liquidity for some of the tokens and exchanged 94 billion SHIB tokens for 360 ETH, 495 million COOK for 16 ETH, and 15 million RFuel for 27 ETH, as reported by analytics firm Lookonchain.
Lookonchain also observed the hackers transferring assets and ETH to new wallets, presumably for the purpose of selling them.
