Cryptocurrency platform Poly Network hack steals $600 million [u]

AppleInsider

Poly Network, the cryptocurrency interoperability protocol, says that it has been hacked and more than $600 million in assorted cryptocurrency was stolen.

While individuals have attempted various cryptocurrency related scams, now the Poly Network has taken to Twitter to announced it has been robbed. The service is calling on cryptocurrency users to blacklist the alleged hackers.

Important Notice:
We are sorry to announce that #PolyNetwork was attacked on @BinanceChain @ethereum and @0xPolygon Assets had been transferred to hacker's following addresses:
ETH: 0xC8a65Fadf0e0dDAf421F28FEAb69Bf6E2E589963
BSC: 0x0D6e286A7cfD25E0c01fEe9756765D8033B32C71

-- Poly Network (@PolyNetwork2)

August 10, 2021

"We call on miners of affected blockchain and crypto exchanges to blacklist tokens coming from [these] addresses," it continues.

The hack is being reported as the largest DeFi (decentralized finance) hack ever, though this is not confirmed.

According to Crypto News, Poly Network lists its stolen assets as being from Binance Smart Chain, Ethereum, and Polygon.

"We will take legal actions," continues the company, "and we urge the hackers to return the assets."

The urging may even be working. Crypto News is now separately reporting that some $1 million has been returned.

Update: The hacker or hackers behind the heist have returned nearly all of the funds as of Friday, Aug. 13.

Read on AppleInsider

georgebmac

So criminals stole criminal's money.   Isn't that illegal?

Maybe they should go to the police.  But what police?  Which country?  

Does anybody care?

People like crypto currencies because they are free of government and corporate oversight.

There are advantages to that.   There are also disadvantages.

verne arase

Ah, crypto.

How can I lose? ... let me count the ways ...

rayz2016

By the time thief converted it back into something he can buy beer with, he’ll have lost most of it in fees. 

jwsc

We’re in early days.  Nine out of 10 cryptocurrencies won’t survive adolescence due to insufficient security and verification processes.  With every breach like this they will lose public trust.  The few that can get it right will flourish.

rcfa

Great way to up the budget for BlackOps and counter the erosion of trust in the dollar in one fell swoop…
…there are agencies with the means and the motivation to do something like that outside what’s traditionally considered criminal circles.

georgebmac

JWSC said:

We’re in early days.  Nine out of 10 cryptocurrencies won’t survive adolescence due to insufficient security and verification processes.  With every breach like this they will lose public trust.  The few that can get it right will flourish.

But what is "it" that they need to get right?

What does crypto offer (aside from anonymity -- but governments will squash that -- there's already a bill to enhance tax enforcement of it).

'They' sing it's praises as currency where anybody can send money to anybody instantly.

But I do that now with AppleCash for my unbanked grandson.   i don't need no stinkin crypto for that!

edited August 2021

sflocal

I know people that are making serious bank in Crypto, but it's stories like these that make me hesitant to dip my toes into crypto.  I still don't quite understand the allure of it and the constant stories of crypto thefts turns me off.

georgebmac

sflocal said:

I know people that are making serious bank in Crypto, but it's stories like these that make me hesitant to dip my toes into crypto.  I still don't quite understand the allure of it and the constant stories of crypto thefts turns me off.

Warren Buffet says "Never invest in something you don't understand".

I'm not even sure if the crypto advocates understand it:  they can't decide if its an investment or a currency.

jwsc

GeorgeBMac said:

JWSC said:

We’re in early days.  Nine out of 10 cryptocurrencies won’t survive adolescence due to insufficient security and verification processes.  With every breach like this they will lose public trust.  The few that can get it right will flourish.

But what is "it" that they need to get right?

What does crypto offer (aside from anonymity -- but governments will squash that -- there's already a bill to enhance tax enforcement of it).

'They' sing it's praises as currency where anybody can send money to anybody instantly.

But I do that now with AppleCash for my unbanked grandson.   i don't need no stinkin crypto for that!

“It.”  Ask 10 people and get 10 different answers.

My view is that a worthy cryptocurrency will not be tied to any nation state but will be considered a trustworthy currency with which one can exchange goods and services in any country.  The key benefit here is that transactions will be direct between two parties bypassing the loathsome bank and exchange rate tax.

A cryptocurrency should be secure and it is the blockchain that is the truly revolutionary component of cryptocurrencies.  It will revolutionize finance in general.

Each transaction should be fully transparent to government entities so that they are not used to avoid taxes or law enforcement agencies.  Not everyone will be pleased with this, but in my view it is a requirement for a long-term viable non-national currency that nation states can tolerate.  And really, that’s the best you can hope for because governments see cryptocurrencies as a potential threat to their power and sovereignty.

At the same time, governments should not be able to limit exchanges on private transactions that are otherwise legal.  They can observe and levy taxes where appropriate, but they should not be able to interfere.  That’s a tall order I know.

A cryptocurrency can be a great hedge against inflation driven by government spending (we’re seeing a lot of that right now).  If cryptocurrency‘s become dominant then at some point governments will not be able to run deficits anymore because they won’t be able to sell debt.  In my view that is a very good thing.

alex_v

The problem (with my limited understanding) is that crypto can’t make up its mind—is it currency or is it an investment? If the value of a crypto is stable it can be used as currency. If it keeps rising like Bitcoin does, you can’t use it for exchange because everyone holds on to theirs in the hopes of getting rich. In that case it’s tulips—a bubble. 

rayz2016

GeorgeBMac said:

JWSC said:

We’re in early days.  Nine out of 10 cryptocurrencies won’t survive adolescence due to insufficient security and verification processes.  With every breach like this they will lose public trust.  The few that can get it right will flourish.

But what is "it" that they need to get right?

What does crypto offer (aside from anonymity -- but governments will squash that -- there's already a bill to enhance tax enforcement of it).

'They' sing it's praises as currency where anybody can send money to anybody instantly.

But I do that now with AppleCash for my unbanked grandson.   i don't need no stinkin crypto for that!

You need to buy beer with it. Once you can buy beer with it, folk will take notice. No one has the time to go through exchanges, get robbed in transaction fees converting it one currency, then getting robbed again to convert it into their home currency.

You need to be able to exchange it for goods and services everywhere, and before anyone does that the market needs to shake out to just a handful of currencies that don't rise and fall like a canoe in a storm, every hour.  No one wants to buy a pint which can change in price while the bartender is pulling it.

So it needs stability, and it needs to be free of hefty conversion and transfer fees.

georgebmac

JWSC said:

GeorgeBMac said:

JWSC said:

We’re in early days.  Nine out of 10 cryptocurrencies won’t survive adolescence due to insufficient security and verification processes.  With every breach like this they will lose public trust.  The few that can get it right will flourish.

But what is "it" that they need to get right?

What does crypto offer (aside from anonymity -- but governments will squash that -- there's already a bill to enhance tax enforcement of it).

'They' sing it's praises as currency where anybody can send money to anybody instantly.

But I do that now with AppleCash for my unbanked grandson.   i don't need no stinkin crypto for that!

“It.”  Ask 10 people and get 10 different answers.

My view is that a worthy cryptocurrency will not be tied to any nation state but will be considered a trustworthy currency with which one can exchange goods and services in any country.  The key benefit here is that transactions will be direct between two parties bypassing the loathsome bank and exchange rate tax.

A cryptocurrency should be secure and it is the blockchain that is the truly revolutionary component of cryptocurrencies.  It will revolutionize finance in general.

Each transaction should be fully transparent to government entities so that they are not used to avoid taxes or law enforcement agencies.  Not everyone will be pleased with this, but in my view it is a requirement for a long-term viable non-national currency that nation states can tolerate.  And really, that’s the best you can hope for because governments see cryptocurrencies as a potential threat to their power and sovereignty.

At the same time, governments should not be able to limit exchanges on private transactions that are otherwise legal.  They can observe and levy taxes where appropriate, but they should not be able to interfere.  That’s a tall order I know.

A cryptocurrency can be a great hedge against inflation driven by government spending (we’re seeing a lot of that right now).  If cryptocurrency‘s become dominant then at some point governments will not be able to run deficits anymore because they won’t be able to sell debt.  In my view that is a very good thing.

That's all true -- or would be / will be if done right.

BUT:

That would largely challenge and eliminate the banksters.  And, aside from the fact that they would not be pleased, those banksters do provide a service and, along with the federal bank(sters), provide a cushion against financial disasters.  In the 19th century the country was plagued with wild, devastating financial swings while banks operated independently without regulation.  Financial stability was (mostly) accomplished when the banksters were more closely regulated and a head bankster was created:   The Fed.  The truth is:   without the banksters, we never would have recovered from either the Great Recession much less the last COVID recession.

At the same time, the U.S. gains enormous leverage over the world by operating the world's reserve currency and financial systems.  It enables us to do things that no other nation can get away with -- such as sanctions, printing money and a total disregard for deficit spending.

I fear that the single largest challenger to U.S. power in the world is not China -- but crypto.

But then that's potentially why other nations (like China) are beginning to experiment with central bank issued crypto:   They want to even out that playing field.

georgebmac

Rayz2016 said:

GeorgeBMac said:

JWSC said:

We’re in early days.  Nine out of 10 cryptocurrencies won’t survive adolescence due to insufficient security and verification processes.  With every breach like this they will lose public trust.  The few that can get it right will flourish.

But what is "it" that they need to get right?

What does crypto offer (aside from anonymity -- but governments will squash that -- there's already a bill to enhance tax enforcement of it).

'They' sing it's praises as currency where anybody can send money to anybody instantly.

But I do that now with AppleCash for my unbanked grandson.   i don't need no stinkin crypto for that!

You need to buy beer with it. Once you can buy beer with it, folk will take notice. No one has the time to go through exchanges, get robbed in transaction fees converting it one currency, then getting robbed again to convert it into their home currency.

You need to be able to exchange it for goods and services everywhere, and before anyone does that the market needs to shake out to just a handful of currencies that don't rise and fall like a canoe in a storm, every hour.  No one wants to buy a pint which can change in price while the bartender is pulling it.

So it needs stability, and it needs to be free of hefty conversion and transfer fees.

I did buy wine with it (Apple Cash) the other day.

But it sounds like you're advocating for a CBDC (Central Bank Digital Cash):

Central bank digital cash will complement cryptos: analysts

"Around 90% of the world’s central banks are now working on their own digital currencies, some of which may be issued in the next three years, a January survey from the Bank for International Settlements showed. ...  Countries with less mature financial systems will be able to use CBDCs as more efficient payment and storage mechanisms, said Georgia Quinn, general counsel of digital asset bank and custodian Anchorage Digital.

...

"Could the United States government create its own U.S. digital currency and say we believe in crypto, but only this crypto? Sure, I think that could absolutely happen," said Todd Cipperman, managing principal at Cipperman Compliance Services.
...

Some central banks, including the Reserve Bank of Australia, are exploring the development of tokenised forms of CBDCs on an Ethereum-based platform."

https://www.reuters.com/business/finance/central-bank-digital-cash-will-complement-cryptos-analysts-2021-06-16/

fonso

Why is this on an Apple news site?  It's totally irrelevant to Apple.

I like crypto news but this doesn't belong here.  If this article was written to generate clicks or to impart clueless, uninformed bad impressions towards crypto, the author should include an update that more than 200M USD has been returned by the hacker, who has been in contact with the Poly Network team, with more to come. The hacker literally couldn't launder the money given extreme traceability and every single relevant authority and entity observing his or her every move.

Once again, this kind of news doesn't belong in a site like Appleinsider.

sconosciuto

GeorgeBMac said:

The truth is:   without the banksters, we never would have recovered from either the Great Recession much less the last COVID recession.

At the same time, the U.S. gains enormous leverage over the world by operating the world's reserve currency and financial systems.  It enables us to do things that no other nation can get away with -- such as sanctions, printing money and a total disregard for deficit spending

and that's why the US government will never allow any non-governmental cryptocurrency to supplant the USD's status. Banksters also have a huge interest in not losing their juicy cuts of transactions. That's just the way the world works, fight it if you want but you're gonna lose at the end of the day.

edited August 2021

sconosciuto

JWSC said:

“It.”  Ask 10 people and get 10 different answers.

My view is that a worthy cryptocurrency will not be tied to any nation state but will be considered a trustworthy currency with which one can exchange goods and services in any country.  The key benefit here is that transactions will be direct between two parties bypassing the loathsome bank and exchange rate tax.

A cryptocurrency should be secure and it is the blockchain that is the truly revolutionary component of cryptocurrencies.  It will revolutionize finance in general.

Each transaction should be fully transparent to government entities so that they are not used to avoid taxes or law enforcement agencies.  Not everyone will be pleased with this, but in my view it is a requirement for a long-term viable non-national currency that nation states can tolerate.  And really, that’s the best you can hope for because governments see cryptocurrencies as a potential threat to their power and sovereignty.

At the same time, governments should not be able to limit exchanges on private transactions that are otherwise legal.  They can observe and levy taxes where appropriate, but they should not be able to interfere.  That’s a tall order I know.

A cryptocurrency can be a great hedge against inflation driven by government spending (we’re seeing a lot of that right now).  If cryptocurrency‘s become dominant then at some point governments will not be able to run deficits anymore because they won’t be able to sell debt.  In my view that is a very good thing.

reading this caused me to imagine a libertarian furiously masturbating onto a copy of Atlas Shrugged.

crowley

JWSC said:

At the same time, governments should not be able to limit exchanges on private transactions that are otherwise legal.  They can observe and levy taxes where appropriate, but they should not be able to interfere.  That’s a tall order I know.

The logical inference of that is that if government cannot observe and/or cannot levy taxes where appropriate, then they should be able to interfere.

And my subsequent inference from that is that all of these fuckers should be shut down because it's all a con.

davgreg

Crypto seems to be little other than a Fool’s Errand.

It is not “digital gold”, it is not secure and it will not be free from the reach of governments and their regulators.

So what is to like?

jwsc

GeorgeBMac said:

JWSC said:

GeorgeBMac said:

JWSC said:

We’re in early days.  Nine out of 10 cryptocurrencies won’t survive adolescence due to insufficient security and verification processes.  With every breach like this they will lose public trust.  The few that can get it right will flourish.

But what is "it" that they need to get right?

What does crypto offer (aside from anonymity -- but governments will squash that -- there's already a bill to enhance tax enforcement of it).

'They' sing it's praises as currency where anybody can send money to anybody instantly.

But I do that now with AppleCash for my unbanked grandson.   i don't need no stinkin crypto for that!

“It.”  Ask 10 people and get 10 different answers.

My view is that a worthy cryptocurrency will not be tied to any nation state but will be considered a trustworthy currency with which one can exchange goods and services in any country.  The key benefit here is that transactions will be direct between two parties bypassing the loathsome bank and exchange rate tax.

A cryptocurrency should be secure and it is the blockchain that is the truly revolutionary component of cryptocurrencies.  It will revolutionize finance in general.

Each transaction should be fully transparent to government entities so that they are not used to avoid taxes or law enforcement agencies.  Not everyone will be pleased with this, but in my view it is a requirement for a long-term viable non-national currency that nation states can tolerate.  And really, that’s the best you can hope for because governments see cryptocurrencies as a potential threat to their power and sovereignty.

At the same time, governments should not be able to limit exchanges on private transactions that are otherwise legal.  They can observe and levy taxes where appropriate, but they should not be able to interfere.  That’s a tall order I know.

A cryptocurrency can be a great hedge against inflation driven by government spending (we’re seeing a lot of that right now).  If cryptocurrency‘s become dominant then at some point governments will not be able to run deficits anymore because they won’t be able to sell debt.  In my view that is a very good thing.

At the same time, the U.S. gains enormous leverage over the world by operating the world's reserve currency and financial systems.  It enables us to do things that no other nation can get away with -- such as sanctions, printing money and a total disregard for deficit spending.

That’s a keen observation about the US currency and its unique and hegemonic role in the international monetary system.  Most people outside the financial industry are unaware of this unique advantage.  It sure is unfair to everyone else but as a US citizen I suppose I shouldn’t complain.  It’s PAX Americana financial style.

As you pointed out, the downside is that our Government can run deficits and do all sorts of irresponsible things no self-respecting financier would otherwise ponder.

Interesting article on CBDC.  I shudder to think what the US Government would do with it, although I do have a hard time seeing how they could implement it.  What would it mean to expand or contract M1 money supply of this currency?  Would it increase transparency with what the Fed does or make more opaque?  Would the behavior of the US Government change?  Rhetorical question - don’t answer that.  With Congress showing little to no restraint on spending, would a CBDC enhanced the Fed’s one lever arm of financial control or diminish it?  So many questions.

edited August 2021

jwsc

crowley said:

JWSC said:

At the same time, governments should not be able to limit exchanges on private transactions that are otherwise legal.  They can observe and levy taxes where appropriate, but they should not be able to interfere.  That’s a tall order I know.

The logical inference of that is that if government cannot observe and/or cannot levy taxes where appropriate, then they should be able to interfere.

And my subsequent inference from that is that all of these fuckers should be shut down because it's all a con.

Well, my unwritten underlying assumption was that a court order would be necessary for the Government to intervene.  They couldn’t just do it arbitrarily at the whim of a Government bureaucracy.