Blockchain Safety First: Poloniex Recovers Bitfinex Stolen BTC

Some of the main concerns the crypto era faces are safety and security. The great innovation of digital assets offers many benefits for its users, such as anonymity, but the same tools can also be used with ill intentions. For this reason, the best crypto-related platforms are the ones that can offer trust and safety, like the exchange Poloniex, which prioritizes the security of its users.

Poloniex is a cryptocurrency exchange where users of all experience levels can trade more than 300 digit assets and over 450 markets like Bitcoin (BTC), Ethereum (ETH), TRON (TRX), and other altcoins. It focuses on delivering a safe and secure experience to the users during every transaction.

“We prioritize the investment in secure operations and strive to provide industry-leading security and stability.”

Poloniex is ranked by CoinMarketCap as the 18th largest cryptocurrency exchange by dollar-value volume with $119 million in the previous 24-hour period.

Hackers and fraudsters can unbalance the ecosystem, but Poloniex minimizes risks and exposure to unauthorized access, cyber-attacks, and other vulnerabilities, by storing the majority of deposits in offline wallets through air-gapped cold storage.

It is vital for crypto platforms to provide this level of safety. As Market Insider reports, in 2021 the ecosystem has seen 32 hack and frauds events, which amounts to a total value of $2.99 billion.

Breaches to exchanges are amongst the most common type of attacks in the industry. Mt. Gox saw the largest one yet, which led them to insolvency in 2014.

Poloniex notes that “Compared with traditional financial markets, the anonymity of blockchain greatly increases the difficulty of recovering stolen assets.”

However, the cooperation and technological improvements within the industry have enhanced the methods to neutralize attacks and recover assets. A recent joint effort between Poloniex and Bitfinex serves as an example.

In 2016, the crypto exchange Bitfinex experienced one of the largest cyberattacks yet, which created a huge backlash, and the market dropped over 20%.

The security breach saw 119,756 BTC stolen, and 27.66270285 BTC were recovered in collaboration with the U.S. government in 2019.

Most of the coins sat idle for a long time until the hacker started to move some in batches during 2020. The movements opened up the possibility for intercepting them.

Recently, after detecting a 6,51458211 BTC deposit from “the 2016 thieves”, Poloniex successfully cooperated with Bitfinex and law enforcement authorities to recover the assets.

“Recovery Right Token (RRT) holders will have their pro rata tokens redeemed in the coming days, based upon the size of their RRT holdings on 04/12/2021 at 12:31 UTC. As the BTC/USD price at the time of the recovery was $47,337, Bitfinex will redeem US$308,380.77334107 in aggregate RRTs.”

Bitfinex commented that they will continue collaborating with third parties and investigations to recover the remaining stolen assets.

Over the years, Poloniex has honored its promise of offering security on the platform. It has improved and maximized the protection of the user’s data privacy and adopted several safety measures.

The platform offers an efficient Anti Money Laundering (AML) system with “strict risk control systems” and efficient 24/7 multilingual customer support. Their internal risk control process allows them to block suspicious transactions, carry proper investigations, and return stolen funds.

Poloniex cooperation with institutions and other companies serves the growth and image of the crypto market, opening the right paths to reduce crime, improve and protect other industries and the investors’ experience

“Although the industry is still in its early stages, Poloniex has and will never relax its self-restraint and is committed to building a healthy, equal, transparent, and safe industry. Security is still the biggest challenge facing the exchange. Poloniex will continue to maintain its technological leadership, insist on safety first, and provide higher security services for global users.”