Recently, the Polygon Network, a cross-bridge platform, experienced a security breach. According to Dedaub, the blockchain security firm, this breach occurred due to compromised private keys, allowing hackers to obtain billions of tokens for personal gain.
Polygon Network acknowledged this incident via Twitter on July 2 and confirmed the manipulation of the smart chain function on their cross-chain bridge protocol. As a result, they temporarily suspended their services.
In a recent update by the Polygon Network team, it was revealed that this security breach affected 57 different cryptocurrencies across 10 blockchains, including BNB Chain, Polygon, Avalanche, Heco, OKx, Metis, and Ethereum.
The exact amount of stolen cryptocurrencies was not specified, but according to an earlier report by Peckshield, attackers had already transferred more than $5 million worth of cryptocurrencies.
According to DeFi security analysts at Arhat, this security breach in the Polygon Network occurred due to a vulnerability in the smart contract. Hackers took advantage of this vulnerability by creating a malicious parameter containing a fake validator signature and block header.
This malicious parameter was easily accessed by the smart contract, bypassing the verification process. Consequently, the hacker was able to transfer billions of tokens from Poly Network’s Ethereum pool to their own addresses on other chains, such as Metis, BNB Chain, and Polygon.
The hackers repeated this process across multiple chains, accumulating a large stash of tokens. According to Dedaub, the attack on Poly Network wasn’t too complex as it didn’t exploit any logic bugs. However, Poly Network’s response was slow, taking seven hours to address the situation. As a result, the platform suffered a loss of at least $5 million in stolen cryptocurrencies. The impact could have been worse, but the lack of liquidity in many of the tokens involved prevented further losses.
This isn’t the first time these hackers have targeted the Polygon Network. On August 10, 2021, they exploited the network and stole around $600 million from Binance Chain, Ethereum, and Polygon. The attack targeted various tokens and revealed vulnerabilities in the cross-chain protocol.
These incidents have undermined investor confidence and hindered market growth. Consequently, many countries are now passing crypto regulation bills to instill confidence and protect individuals across the country as they engage with financial services.
On January 7, Global payments giant Mastercard collaborated with Polygon, a leading blockchain platform, to explore the potential of the Web3 music market. As part of their joint efforts, Mastercard is launching the “Mastercard Artist Accelerator” program, connecting five emerging musicians with mentors in the music industry. Leveraging the capabilities of the Polygon network, these artists will have access to unique opportunities such as concerts and special events.