Cryptocurrency Scam

Hackers returning money stolen in massive cryptocurrency scams

*Experts say crypto fraud perpetrators may be refunding their stolen assets because laundering large amounts of stolen cryptocurrency is challenging

Isola Moses | ConsumerConnect

In sort of a volte-face, a group of hackers Wednesday, August 11, 2021, began returning some of the cryptocurrency funds they stole via exploiting a vulnerability in Poly Network, a cryptocurrency platform that facilitates peer-to-peer transactions.

The hackers, agency report said, recently stole just over $600 million in digital tokens in a cryptocurrency heist regarded as one of the largest scams in history.

Cryptocurrencies

Poly Network reportedly disclosed the hack Tuesday this week, and urged those it described as “bad actors” to “return the hacked assets.”

The platform said it planned to take legal action over the incident.

Poly Network in a tweet said: “The amount of money you hacked is the biggest in defi history.

“We will take legal actions and we urge the hackers to return the assets.”

Laundering cryptocurrency is difficult

On the rationale behind their returning the stolen assets, report said by Wednesday morning, the hackers had refunded about $4.8 million in tokens. A few hours later, about $258 million had been returned.

Experts say the hackers may have been motivated not only by Poly’s plea, but by the challenge of laundering stolen crypto on such a large scale, CNBC report said.

Tom Robinson, Chief Scientist of blockchain analytics firm Elliptic, said: “I think this demonstrates that even if you can steal cryptoassets, laundering them and cashing out is extremely difficult due to the transparency of the blockchain and the use of blockchain analytics.

“In this case, the hacker concluded that the safest option was just to return the stolen assets.”

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