Polygon Network Shaken by Alleged Hack: Shockwaves Ripple Through Crypto Community

July 2, 2023 10:13 AM
Cryptocurrency enthusiasts were taken aback by recent reports claiming that the popular Polygon network had fallen victim to a hacking incident. According to a Chinese crypto blogger, who first broke the news, unknown hackers managed to exploit the network and minted billions of dollars' worth of crypto assets on Polygon's side network.
Polygon, renowned for its layer-2 scaling support for the Ethereum blockchain, operates as a prominent Proof-of-Stake (PoS) blockchain network. Currently, its native token, Matic, stands as the 13th largest cryptocurrency in terms of trade volume.
The alleged breach on July 2, 2023, prompted crypto security platform Peckshield to advise the Polygon network team to investigate the sudden surge in token supply on their network. The security firm raised concerns about multiple crypto network tokens.
Peckshield took to Twitter to issue the warning, urging Polygon to take immediate action. Chinese crypto blogger Colin Wu, known for his insightful coverage of crypto-related news, further supported the claims of the hack. Wu reported that an anonymous hacker had successfully compromised the Polygon network, minting over $10 billion worth of BUSD stablecoin, along with several other crypto assets valued at millions of dollars.
In a recent tweet, Wu detailed the alleged attack, mentioning that an astounding 99,999,184 BNB and 10 billion BUSD were issued on Metis, while 999.8127T SHIB was issued on Heco. Additionally, 87,579,118 COW, 999,998,434 OOE, 636,643,868 STACK, and 88,640,563 GM were also created.
This unfortunate incident marks the second time the Polygon network has faced a significant security breach. Earlier this year, hackers successfully made off with nearly $600 million worth of crypto assets. However, in a surprising turn of events, the hacker eventually returned all the stolen funds.
Despite the shocking nature of the alleged hack, it appears that the negative news has not significantly impacted the trade price of Matic, Polygon's native coin. At the time of writing, Matic is trading at $0.66, reflecting a marginal increase of 1.7% over the past 24 hours.
It is worth noting that the situation is still developing, and it is crucial for individuals involved in the crypto space to exercise caution. Digital asset prices are inherently volatile, and incidents like these underscore the importance of conducting thorough research and staying informed. As always, we encourage readers to verify information from multiple sources and formulate their own opinions.
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