PolyNetwork, the cross-chain defi protocol, became the victim of the largest defi hack in crypto history last week with $610 million in stolen funds. The hacker later returned nearly $400 million worth of funds claiming to be a White hat after the protocol pleaded with him and also threatened with legal actions. Still, there is more than $200 million worth of funds that needed to be returned.
The firm has now offered the hacker the role of network’s chief security advisor.
PolyNetwork had earlier offered half a million bounty to the hacker, and now it has offered him the role of network’s chief security advisor while assuring they have no intention of taking any further legal actions. The defi protocol in an official tweet also noted that it would transfer the promised $500,000 very soon as it continues to maintain communication with him. The hacker who identified himself as Whitehat still has keys to $200 million worth of funds that belong to investors.
#PolyNetwork has no intention of holding #mrwhitehat legally responsible and cordially invites him to be our Chief Security Advisor. $500,000 bounty is on the way. Whatever #mrwhitehat chooses to do with the bounty in the end, we have no objections. https://t.co/4IaZvyWRGz
— Poly Network (@PolyNetwork2) August 17, 2021
The hacker had managed to exploit a loophole in the cross-chain protocol.
In an official blog post, PolyNetwork noted that it had completed the second phase of Mainnet Upgrade to make the security of the protocol more robust post hack. The hacker had managed to exploit a loophole in the cross-chain protocol, allowing him to bypass transaction custodians that approve any network transactions. This allowed Whitehat to transfer such a significant amount of funds in a matter of a couple of hours which he transferred to three different blockchain addresses. The hacker had also claimed that the heist could have been in billions had he decided to drain other “shitcoins.”