Ethereum

DeFi

Tornado Cash

Fantom

Tornado

<p>Crypto lending and trading firm Polter Finance, which runs on the Fantom blockchain, said it lost more than $7 million due to a <a href="https://coinpedia.org/blockchain-developers/how-to-build-smart-contracts-step-by-step-for-blockchain-applications/" target="_blank" rel="noreferrer noopener">smart contract</a> hack. It unveiled total future security threats operating within the DeFi space, particularly those involved in cross-chain operations, as reported by Cyvers Alerts.</p>   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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   https://twitter.com/CyversAlerts/status/1858388202102685892 
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<h2 class="wp-block-heading" id="h-details-of-the-exploit"><strong>Details of the Exploit</strong></h2>   
<p>The exploit was launched once the attacker got financed via Tornado Cash, an Ethereum privacy-preserving platform. They then transferred the funds to the <a href="https://coinpedia.org/price-prediction/fantom-ftm-price-prediction/" target="_blank" rel="noreferrer noopener">Fantom network</a> using the anonymity and interoperability of the chain to launch the attack. The malicious transaction which was recorded in FTMScan, identified loopholes in the Polter Finance system, to drain a considerable amount of funds out.</p>   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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   https://twitter.com/polterfinance/status/1857971122043551898 
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<h2 class="wp-block-heading" id="h-measures-amp-responses"><strong>Measures &amp; Responses</strong></h2>   
<p>In an immediate response to the incident, Polter Finance took decisive steps to mitigate further losses and begin recovery efforts:</p>   
<p><strong>Platform Freeze: </strong>The trading activities on Polter Finance were temporarily suspended in order to stop identity theft.</p>   
<p><strong>Bridge Notifications:</strong> Several <a href="https://coinpedia.org/beginners-guide/what-are-blockchain-bridges/" target="_blank" rel="noreferrer noopener">blockchain bridges</a> known to regulate the transfer of stolen assets received a notification to prevent its transfer.</p>   
<p><strong>Wallet Tracing:</strong> Law enforcement also managed to find some wallets that have participated in the scam and some of them were linked to Binance.</p>   [post_titles_links postid="381032"]   
<p>The team has also initiated a proactive search, in cooperation with exchanges and security companies, for the attacker and the assets.</p>   
<p>This hack has created fresh worries within the DeFi area concerning the protection flaws, particularly those related to cross-chain operations. Since such mechanisms ensure anonymity and ease of transfer, platforms using privacy tools such as Tornado Cash and cross-chain bridges appear to be the next targets for such attacks.</p>   
<p>Though the team’s response seems operational, the industry needs to develop enhanced threat identification and counteractions that would win people’s trust in <a href="https://coinpedia.org/glossary/defi/" target="_blank" rel="noreferrer noopener">decentralized finance</a>.</p>

Polter Finance Hack: $7 Million Stolen via Cross-Chain Exploit on Fantom Network

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