In a major blow to the cryptocurrency industry, Poloniex, a leading exchange platform founded by Tron’s Justin Sun, has suffered a massive security breach that resulted in the loss of over $100 million worth of digital assets. The hack, which occurred on November 14, 2023, was confirmed by Poloniex in an official statement posted on its website and social media channels.
According to the statement, the hackers exploited a vulnerability in the exchange’s hot wallet system, which stores a small portion of the funds online for faster transactions. The hackers were able to access and transfer out over 20,000 bitcoins (BTC), 10,000 Ethereum (ETH), 5,000 Tron (TRX), and other tokens from the hot wallet to various unknown addresses. The exchange said that it has notified the relevant authorities and is working with them to track down the perpetrators and recover the stolen funds.
Poloniex also assured its customers that their funds are safe and that the exchange will cover the losses from its own reserves. The exchange said that it has temporarily suspended all deposits and withdrawals until further notice, and that it is conducting a thorough security audit to prevent any similar incidents in the future. Poloniex apologized for the inconvenience and urged its users to remain calm and patient.
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The hack is one of the largest and most devastating in the history of cryptocurrency exchanges, surpassing the infamous Mt. Gox hack of 2014, which resulted in the loss of 850,000 bitcoins (worth about $450 million at the time). The hack also raises serious questions about the security and reliability of centralized exchanges, which have been repeatedly targeted by hackers and cybercriminals over the years.
The hack also casts a shadow over Tron founder Justin Sun, who acquired Poloniex in October 2019 from Circle, a US-based fintech company. Sun, who is known for his controversial and flamboyant marketing tactics, has been promoting Poloniex as a flagship platform for his own cryptocurrency, TRX, as well as other projects under his umbrella, such as BitTorrent and Steemit. Sun has not yet commented on the hack publicly, but some critics have accused him of negligence and mismanagement.
Justin Sun is one of the most prominent figures in the cryptocurrency industry. He is the founder of Tron, a blockchain platform that aims to create a decentralized internet and entertainment system. Tron has a native token called TRX, which is used to power various applications and transactions on the network.
But before Tron, Sun was involved in another crypto project that had a significant impact on the industry. He was the chief representative of Ripple in China, a company that provides cross-border payment solutions using its own cryptocurrency, XRP. Sun joined Ripple in 2014 and helped establish partnerships with major Chinese banks and financial institutions. He also promoted Ripple’s vision of creating an internet of value, where money can move as fast and cheaply as information.
Sun left Ripple in 2016 to launch his own project, Tron. He claimed that Tron would be a better version of Ethereum, the leading smart contract platform in the crypto space. He also said that Tron would surpass Bitcoin in terms of scalability, security, and efficiency. Sun raised $70 million in an initial coin offering (ICO) in 2017, attracting thousands of investors and supporters.
However, Sun’s previous crypto precedence also brought him some controversies and criticisms. Some accused him of plagiarizing the whitepapers of other projects, such as Filecoin and IPFS. Others questioned his marketing tactics and hype strategies, which often involved making bold claims and announcements without delivering on them. Sun also faced legal issues, such as being sued by former employees for harassment and violence and being investigated by Chinese authorities for illegal fundraising and money laundering.
Despite these challenges, Sun has managed to keep Tron relevant and competitive in the crypto market. He has acquired several platforms and companies, such as BitTorrent, Steemit, and Poloniex, to expand Tron’s ecosystem and user base.
He has also launched several initiatives and programs, such as the Tron Foundation, the Tron Accelerator, and the Sun Network, to support developers and entrepreneurs who want to build on Tron. He has also engaged with influential figures and celebrities, such as Warren Buffett, Kobe Bryant, and Lindsay Lohan, to promote Tron and crypto adoption.
Sun’s previous crypto precedence shows that he is a visionary and ambitious leader who wants to make a difference in the world. He is also a controversial and polarizing figure who faces many challenges and criticisms. Whether he can achieve his goals and overcome his obstacles remains to be seen.
The hack is likely to have a negative impact on the cryptocurrency market as a whole, as it erodes investor confidence and trust in the industry. The prices of major cryptocurrencies, including BTC, ETH, and TRX, have dropped sharply following the news of the hack, wiping out billions of dollars in market capitalization. The hack also highlights the need for more regulation and oversight in the cryptocurrency space, as well as the adoption of more secure and decentralized alternatives to centralized exchanges.