Poloniex’s Recovery Post-Hack
Cryptocurrency exchange Poloniex is set to resume withdrawal and deposit services starting November 30, following a major hack on November 10 that led to an estimated $100 million loss. This marks a significant step in the platform’s recovery efforts.
Initial Restoration with TRX
Poloniex announced that it will first re-enable deposits and withdrawals for TRX, the native token of the Tron blockchain. This initial step, scheduled to start at 2 AM UTC on November 30, will be followed by the phased reintroduction of other major cryptocurrencies like Bitcoin, Ether, and Tether over the next two weeks.
Safety Measures and New Wallets
In light of the hack, Poloniex has advised users to deposit funds only to the newly updated wallet addresses. This precautionary measure aims to enhance security and prevent further loss of funds.
Upcoming Airdrop for Users
To regain user trust, Poloniex revealed plans for an upcoming airdrop, in collaboration with HTX DAO. The airdrop will calculate user balances on December 1st, with distribution expected in December. Details about the “premium project” tokens to be airdropped remain undisclosed.
Tron Transactions Prioritized
Given Poloniex’s close relationship with Tron founder Justin Sun, the decision to prioritize Tron transactions is not unexpected. Sun played a crucial role in Poloniex’s acquisition from Circle in 2019 and continues to be a significant investor in the exchange.
Repeated Hacks Affecting Sun’s Ventures
Justin Sun’s crypto ventures, including Poloniex and HTX, have experienced multiple hacks recently, totaling nearly $240 million in losses. Despite these setbacks, Sun has committed to reimbursing affected users across the platforms.
Industry-Wide Impact of Poloniex Hack
The Poloniex hack has had far-reaching effects on the crypto industry, influencing the prices of several assets. Notably, the hacker’s purchase of $20 million worth of Tron led to a temporary 25% spike in TRX prices.
Persistent Threat of Crypto Exchange Hacks
Despite advancements in security, cryptocurrency exchanges remain vulnerable to hacking. A report from The Money Mongers indicates that the total number of cryptocurrency hacks in 2023 has reached 330, with losses amounting to $2.1 billion. This highlights the urgent need for exchanges to strengthen their security frameworks and internal controls.