Poloniex, the cryptocurrency exchange owned by Justin Sun, is poised to resume its operations following a major security breach in November, as announced by the company on November 15th.
In its official statement, Poloniex revealed that it has made significant progress in restoring its platform after the devastating $100 million hack.
The exchange reported that its operations are now running smoothly and has even engaged the services of a reputable security auditing firm to bolster the safety of users’ funds on the platform.
Furthermore, Poloniex is actively preparing to restart its deposit and withdrawal services.
Poloniex’s official statement read, “Currently, they are in the final stages of the security audit and verification processes for Poloniex.
Upon completion of the audit, we will promptly resume deposit and withdrawal services on our platform.” While this evaluation process is ongoing, it is anticipated to conclude within the coming days.
The security breach occurred on November 10th, resulting in cybercriminals stealing over $100 million worth of cryptocurrency from Poloniex.
In response, Poloniex took immediate action by disabling its wallet after detecting suspicious transactions. CertiK, a blockchain security firm, indicated that the incident was likely due to a “private key compromise.”
Justin Sun, the owner of Poloniex who acquired the exchange in 2019, swiftly addressed the situation on social media, assuring users that the company was actively investigating the hack.
Sun also committed to fully reimbursing affected users, emphasizing that Poloniex maintains a robust financial position and is exploring potential collaborations with other exchanges to recover the lost funds.
This unfortunate event follows another recent setback for Poloniex in 2023 when the exchange agreed to a $7.6 million settlement with the United States Treasury Department’s Office of Foreign Asset Control.
This settlement was related to more than 65,000 apparent violations of multiple sanctions programs, demonstrating the challenges and regulatory scrutiny faced by cryptocurrency exchanges.
As Poloniex progresses towards the completion of its security audit and the resumption of its services, the crypto community watches closely, hoping for a successful recovery and a strengthened commitment to safeguarding user assets in the future.
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