Poloniex To Resume Services After Devastating $100M Hack

Poloniex To Resume Services After Devastating $100M Hack

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Cryptocurrency exchange Poloniex is set to resume withdrawal services after a crippling hack that saw $100 million stolen from the platform. 

The exchange also stated that it is enhancing security features on the platform and plans to initiate an airdrop campaign in partnership with the HTX DAO. 

Poloniex To Resume Services 

Poloniex has announced that it is set to resume withdrawal and deposit services following a major security breach, a major positive development for the crypto space. The breach led to Poloniex losing $100 million on the 10th of November, disrupting operations and leading to considerable concern among users and the larger crypto community. The Poloniex hack also highlighted the constant threat of hackers in the crypto ecosystem. 

The exchange announced in a post on X (formerly Twitter) that Poloniex would gradually begin withdrawal and deposit services beginning on the 30th of November. The move is a crucial step in the cryptocurrency exchange’s recovery efforts and also signals its commitment to resume normal operations and ensure the security of user funds moving forward. 

A Phased Resumption 

Poloniex stated that the resumption of services will be executed in a phased manner, with the initial focus being on user safety. The process will begin with re-enabling deposits and withdrawals for Tron (TRX), the native token of the Justin Sun-founded Tron blockchain. Support for Tron will go live at 2 AM UTC on the 30th of November. Over the next couple of weeks, deposit and withdrawal services for Bitcoin (BTC), Ether (ETH), and other major cryptocurrencies will also be reintroduced. The phased schedule, according to Poloniex, ensures the maximum safety of user funds. 

“Our deposit and withdrawal services will gradually resume from the 30th of November, 2023, at 02:00 (UTC). We’ll implement a phased approach starting with enabled TRX deposits and withdrawals, followed by BTC, ETH, USDT, and more within the next two weeks.”

The decision to reintroduce TRX services first highlights Tron’s importance in the Poloniex ecosystem. Apart from restoring deposit and withdrawal functionality, the exchange is also planning to introduce new cryptocurrency listings. The listings are designed to help diversify Poloniex’s offerings and give users more options when it comes to their trades and investments. 

The exchange has also urged users to use newly updated deposit addresses once they are available. It stated that if users don’t use the updated addresses, it could lead to deposits not being credited to the account. This highlights the importance of adopting new security protocols in the aftermath of the hack. 

Airdrop Campaign 

Poloniex has also announced an airdrop campaign in partnership with HTX DAO. The move is scheduled to begin in December, with the asset balance circulation set to commence from the 1st of December. Sun had initially announced the airdrop plan on the 24th of December, with the tokens for the airdrop to be sourced from a premium project yet to be listed on the Poloniex exchange. Further details about the project will also be revealed in December. 

Poloniex hopes to use the airdrop as a gesture of goodwill and to rebuild trust and loyalty within the Poloniex user base. It also highlights Poloniex’s efforts to maintain engagement and activity as it goes through its recovery phase. 

Hacks Still A Major Threat 

Despite several security improvements, hacks and exploits are a constant headache for cryptocurrency exchanges. A recent report has revealed that there have been around 330 crypto hacks in 2023, with one more month still to go. These security incidents have led to the loss of around $2.1 billion so far. Most of these hacks occur due to technical vulnerabilities or compromised private keys. Users have urged exchanges to adopt better security measures to secure funds. 

Justin Sun’s own crypto ventures have fallen victim to four hacks in the past two months, leading to around $240 million worth of losses. This includes both Poloniex and HTX losing significant funds. Despite the repeated hacks, Sun has assured users that they will be reimbursed for their losses across all platforms.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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