Poly Network, the cryptocurrency exchange that was hacked earlier this week and lost $610 million (approximately Rs. 4,530 crores), revealed on Friday that it has awarded the hacker or hackers a $500,000 (about Rs. 3.7 crores) “bug bounty.”
It praised the hacker, whom it termed a “white hat,” for “helping us improve Poly Network’s security,” in a statement. “White hat” is industry lingo for an ethical hacker who typically tries to disclose cyber weaknesses.
The network also expressed its hope that “Mr. White Hat” would help to the continuing growth of the blockchain industry by accepting the $500,000 (approximately Rs. 3.7 crores) incentive it had given as part of the digital currencies’ repatriation discussions.
The payment method for the $500,000 was not specified in the announcement (roughly Rs. 3.7 crores). The hacker had reacted to the offer, but it was unclear if it had been accepted.
On Thursday, Tom Robinson, chief scientist and co-founder of crypto monitoring business Elliptic, posted digital communications on Twitter showing a person claiming to have carried out the breach had stated Poly Network had given him the bounty to restore the stolen funds.
Poly Network is a decentralized finance (DeFi) network that allows peer-to-peer payments with an emphasis on allowing users to move or trade tokens across several blockchains.
According to blockchain forensics firm Chainalysis, the as-yet-unnamed hacker or hackers appear to have exploited a weakness in the digital contracts Poly Network utilizes to shift assets across multiple blockchains.
According to a statement released on Friday, the hacker has returned $340 million (approximately Rs. 2,520 crores) in assets and transferred the majority of the remaining funds to a digital wallet shared by them and Poly Network.
The remaining, held in tether, was frozen by the stablecoin’s cryptocurrency backers. “After communicating with Mr. White Hat, we have also come to a more complete understanding regarding how the situation unfolded as well as Mr. White Hat’s original intention,” the statement stated, without going into detail.
On Tuesday, Poly Network confirmed the attack, but the next day, the hackers stated they had begun restoring the digital currencies they had seized.
In digital communications supplied by Elliptic, the hackers stated they carried out the assault for fun and that returning the tokens was always the goal.
However, other blockchain experts believe it would have been too difficult to launder stolen bitcoins on such a high level.