2024

DeFi

Million

Flash

Security

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 Polter Finance, a lending and borrowing DeFi protocol, has joined forces with DeFi security group Security Alliance Information Sharing and Analysis Center (SEAL-ISAC) to trace and recover $12 million stolen in a recent flash loan attack.
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The platform <a style="color: #0000ff;" href="https://x.com/polterfinance/status/1858374281417404619?t=X8VNuC7hbd_P6BB9n9ZoDg&amp;s=19" rel="noopener noreferrer nofollow">announced</a> the partnership as part of its ongoing efforts to identify the attacker, recover the funds, and restore confidence among its users.
<blockquote class="twitter-tweet">
 We have reached out and are in touch with the <a href="https://twitter.com/_SEAL_Org?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@_SEAL_Org</a> in regards to the <a href="https://twitter.com/search?q=%24POLTER&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$POLTER</a> exploit
 — polterfinance<img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f4a5.png" alt="💥" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@polterfinance) <a href="https://twitter.com/polterfinance/status/1858374281417404619?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 18, 2024</a>
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The <a style="color: #0000ff;" href="https://x.com/polterfinance/status/1857971122043551898" rel="noopener noreferrer nofollow">incident</a>, which occurred on November 17, led the platform to pause operations, involve law enforcement, and trace the stolen funds to wallets on Binance.
According to the protocol, the attack exploited vulnerabilities in a newly deployed smart contract, specifically a faulty oracle price in Polter’s BOO token market.
&nbsp;The breach resulted in significant losses as it drained the platform’s total value locked (TVL), which <a style="color: #0000ff;" href="https://x.com/lilbagscientist/status/1857872498362028536?t=IVZWcaBpGWsLbDeqT3Jl2A&amp;s=19" rel="noopener noreferrer nofollow">reportedly</a> included $223,219 in personal funds from the protocol’s pseudonymous founder, “Whichghost.”&nbsp;
<blockquote class="twitter-tweet">
 The platform was paused soon after the exploit was identified. Bridges were notified. We identified wallets involved and traced it to Binance. We are still investigating the nature of the exploit. We are in the processing of contacting the Authorities.
 — polterfinance<img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f4a5.png" alt="💥" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@polterfinance) <a href="https://twitter.com/polterfinance/status/1857971122043551898?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 17, 2024</a>
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To address the breach, Polter paused platform operations, reported the incident to Singaporean law enforcement, and began tracing stolen funds, which were found in wallets on Binance. “Whichghost” also <a href="https://x.com/whichghost/status/1858134916632080648" rel="noopener noreferrer nofollow">filed </a>a police report and confirmed that the attack did not result from compromised private keys.
<blockquote class="twitter-tweet">
 the following is the police report filed regarding <a href="https://twitter.com/polterfinance?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@polterfinance</a> exploit <a href="https://twitter.com/search?q=%24POLTER&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$POLTER</a> <a href="https://t.co/1PycJIrbZV" rel="noopener noreferrer nofollow">pic.twitter.com/1PycJIrbZV</a>
 — whichghost <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f4a5.png" alt="💥" class="wp-smiley" style="height: 1em; max-height: 1em;"> | Polter Finance (@whichghost) <a href="https://twitter.com/whichghost/status/1858134916632080648?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 17, 2024</a>
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Notably, the BOO market at the centre of the attack was valued at only $3,000, raising questions among the community. Critics on X <a style="color: #0000ff;" href="https://x.com/HashShroom/status/1857973454680502377?t=43IOR3NQWJjSu6z7vNX6kw&amp;s=19" rel="noopener noreferrer nofollow">speculated</a> about possible insider involvement, with some suggesting that the police report could be an attempt to shift attention away from internal failings.
Polter has <a href="https://x.com/polterfinance/status/1858158065264324769?t=70RRf7b8MtdQi5niBGQZPg&amp;s=19" rel="noopener noreferrer nofollow">attempted </a>to contact the hacker through an on-chain message, offering to negotiate and ensure impunity if the funds are returned. However, the hacker has not responded as of this report.
The breach mirrors a broader trend in the DeFi space, where platforms are grappling with similar challenges. Just days earlier, DeltaPrime, another lending protocol,<a href="https://defi-planet.com/2024/11/deltaprime-defi-protocol-issues-ultimatum-to-hacker-after-4-8m-attack/" rel="noopener noreferrer nofollow"> faced a $4.8 million hack</a>. On November 13, the protocol’s co-founder Gavin Hasselbaink issued an ultimatum to the attacker via X, threatening legal action if the stolen funds were not returned.
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The post <a href="https://defi-planet.com/2024/11/polter-finance-partners-with-seal-isac-to-recover-12-million-stolen-in-flash-loan-hack/" rel="noopener noreferrer nofollow">Polter Finance Partners with SEAL-ISAC to Recover $12 Million Stolen in Flash Loan Hack</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

Polter Finance Partners with SEAL-ISAC to Recover $12 Million Stolen in Flash Loan Hack

DeFi Planet

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