Poloniex Crypto Exchange Reinstates Withdrawals Following $100M Hack

In the aftermath of a security breach on 10 November, Poloniex, the cryptocurrency exchange under the leadership of Justin Sun, is poised to recommence operations.

As per the official company announcement on 15 November, the platform has made significant strides in completing the restoration efforts following the $100 million hack.

In its latest update on deposit and withdrawal services, Poloniex reported the platform’s smooth operation.

To bolster the security of user funds, the exchange has engaged a top-tier security auditing firm, with plans to resume withdrawals in the near future.

The firm explained:

“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.”

The ongoing evaluation process, however, is expected to extend over the coming days.

The security breach prompted swift action from the Poloniex team, who promptly disabled the wallet upon detecting suspicious outflows during the attack.

According to CertiK, a blockchain security firm, the incident likely involved a “private key compromise” and updated that the Poloniex hack was the second largest private key compromise in 2023 thus far.

Justin Sun, the owner of Poloniex since 2019, reassured users of an ongoing investigation and pledged full reimbursement for those affected.

Justin, via X (formerly known as Twitter), emphasised Poloniex’s robust financial position and expressed a commitment to collaborate with other exchanges to recover the lost funds.

It is noteworthy that earlier in 2023, Poloniex reached a settlement of $7.6 million with the United States Treasury Department’s Office of Foreign Asset Control.

This settlement addressed over 65,000 apparent violations across multiple sanctions programmes.

Poloniex is currently ranked number 19 on CoinMarketCap.

Source: CoinMarketCap

Earlier this year, Justin Sun consolidated the operations of the Huobi and Poloniex exchanges under the unified brand of Huobi.

This information has been revealed through an internal communication, as conveyed in a letter addressed to the company’s staff and subsequently shared with the media.

* Original content written by Coinlive. Coinbold is licensed to distribute this content by Coinlive.