News15 August 2021

Another DeFi Attack: Neko Network Hacked As Poly Network Pays $500K Bounty to Hacker

Hackers Target Neko in a Brazen Attack

Summary

  • Neko Network becomes the latest victim in a series of DeFi attacks
  • More than $2 million stolen
  • Hacker returns part of the stolen tokens
  • Hacker wins $500,000 bounty for exposing Poly Network system vulnerabilities

Just as the dust is about to settle on the Poly Network hack, the DeFi network is once again counting losses after a subsequent attack on the Neko Network, forcing the network to freeze its assets pool. More than $2 million has been compromised as the hacking address received 2 million USDT, 1 BTCB, and 390,000 BUSD.

After successfully transferring the tokens, the hacker exchanged them for BNB using Binance Smart Chain’s PancakeSwap and returned only 2,872 BNBs of the stolen 6,390.

This hack is different from the recent Poly Network hack because the Neko hacker shows no intention of returning the stolen tokens, at least not in full.

Since the hack, the attacker has been making 100 BNB transfers to tornado cash at a time to mix the coins. By Friday, 13 August, there were only 2020 BNB left on the hacker’s address from the 3,519 he was yet to return.

The Neko Network hack was successful due to a loophole on Neko’s BSC lending protocol. The hacker was able to mortgage assets using users’ names and later transferred the borrowed funds to their address.

Still, on DeFi hack attacks news, the Poly Network hacker has returned all the stolen assets to the network, earning him a $500,000 bounty and ‘white hat’ title for exposing system vulnerabilities and returning the stolen tokens. The network expressed gratitude to the hacker for helping them improve their network security.

While the return and reward was a welcome move, experts weighing in on the Poly Network hack believe that the return was only due to convenience issues the hacker would face when laundering the stolen tokens, which would require more effort than explaining a $500,000 bounty win.

Kibet Elikana
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