Business

Hacker behind record crypto heist to return loot

Culprit dubbed ‘Mr White Hat’ to give back US$613 mil of stolen digital currency

Updated 5 years ago · Published on 13 Aug 2021 7:30AM

Hacker behind record crypto heist to return loot
A person claiming responsibility for the largest ever cryptocurrency theft says he hopes the transferring firm in question, Poly Network, fixes the flaws he exposed– Pixabay pic, August 13, 2021

SAN FRANCISCO – A firm specialising in transferring cryptocurrency said yesterday that a hacker they are calling “Mr White Hat” was giving back all US$613 million (RM2.59 billion) in digital loot from a record haul.

Poly Network had put out word previously that nearly half of the digital assets swiped early this week had been returned.

“As our communication with Mr White Hat is going on, the remaining user assets on Ethereum are gradually transferred,” Poly Network said in a tweet.

“We look forward to Mr White returning all the remaining user assets, as stated by him.”

Polygon had urged the thief to return the stolen fortune.

A person claiming to be the hacker told their side of the story in a question-and-answer style post on Twitter.

The hacker said the heist was pulled “for fun” to expose a flaw that could have cost Poly Network dearly and undermined faith in cryptocurrencies.

“I would say figuring out the blind spot in the architecture of Poly Network would be one of the best moments in my life,” the post read.

“To be honest, I did have some selfish motives to do something cool but not harmful... then I realised being the moral leader would be the coolest hack I could ever achieve.”

The return of the digital loot came as the thief was tracked by “white hat” hackers who use their software skills for good.

Their nefarious counterparts are referred to as “black hat” hackers in the cybersecurity world.

The heist had sparked debate about whether it would be fair to let the hacker keep some of the loot as reward for uncovering a Poly Network security weakness.

Open source developers alliance BinomialPool in a tweeted exchange proposed a bounty of 5% to 10% for pulling off such crypto-hacks.

“This could be a win-win,” tweeted @BinomialPool.

“Hackers don’t go into jail. The community faces acceptable losses. Code gets better.”

In an exchange on Twitter, Poly Network promised to pay a US$500,000 bug bounty after the stolen assets are returned.

Poly Network also assured the hacker they would not be held accountable.

“We think this behavior is white hat behavior, therefore this US$500,000 will be seen as a completely legal bounty reward,” Poly Network said in the exchange.

Paying hackers bounties for uncovering and reporting bugs in software is common practice in the tech world.

Early on, Poly Network threatened police involvement, but also offered the hacker a chance to “work out a solution.”

The purported hacker said in the post that returning the digital haul was always the plan.

“I know it hurts when people are attacked, but shouldn’t they learn something from those hacks,” the post maintained.

The US Justice Departmentand FBI did not respond to requests for comment. – AFP, August 13, 2021

Related News

Malaysia / 1y

Malaysia to sign convention on cybercrime this October – Saifuddin Nasution

Malaysia / 2y

Inspector nabbed in connection with RM1.25 million extortion case

World / 2y

Rise of three-nation partnership to fight menace of cyber threats in region

Malaysia / 2y

What more must the authorities do to combat online scams?

Education / 2y

Kings and CSM set to drive cybersecurity education and research in the country

Malaysia / 2y

Padu security breach: Pikom urges govt to engage ‘crucial’ external expertise

Spotlight

Trump’s North Korea gamble deepens Asia’s doubts over US alliances

Malaysia

Rayer denies involvement in 'Maha Kali Red Rally', claims name and photo misused

Malaysia

E-Hailing driver charged with attempted murder after allegedly setting worker on fire

Business

Nation’s economic outlook strengthens as leading index signals continued growth

Malaysia

‘No parent wants her child to be remembered this way,’ says mother of 14-year-old Keziah

Malaysia

RM1.96m Penang land probe: Two ‘Datuks’ remain in custody

Business

K8 cargo: Businessman seeks clarification from MOF, Customs, Petronas

Malaysia

PH leaders hold talks as Melaka election plans take shape

Malaysia

Bersama rejects political alliances, vows to go solo in Melaka state election

You may be interested

Business

Oil prices pull back after rally as markets brace for tougher Iran sanctions

Business

Govt rules out RM7.5b Datasonic takeover amid identity security concerns

Business

Matrix Concepts records RM416.7m in 1Q27 sales as geographic diversification gains traction

Business

Nation’s economic outlook strengthens as leading index signals continued growth

Business

K8 cargo: Businessman seeks clarification from MOF, Customs, Petronas