Renowned web3 security firm, Beosin has provided deep insight into the cyber breach on Polter Finance, which claimed up to $12 million worth of digital assets. In a Wednesday post on its official page on X, the firm highlighted how the attack manifested, urging community members to remain vigilant.
Beosin confirmed that the attack manifested as a result of a faulty oracle price-related flash loan exploit on its newly deployed SpookySwap (BOO) market. More so, the firm revealed that the attack on Polter Finance highlighted the roles oracles play in decentralized finance.
Consequently, in its analysis, Beosin disclosed that the hacker converted the stolen funds FTM and then made all the deposits to the Ethereum network. Meanwhile, the firm revealed that the hacker lost a significant portion of the loot to on-chain network fees as the final deposit was only worth $7.76 million.
Thereafter, the hacker sent about 2,625 ETH to popular cryptocurrency mixer, Tornado Cash. According to Beosin’s revelation, the value of POLTER, the native token of Polter Finance, dipped by 85% following the attack.
The firm added that after the attack, Polter Finance is working side by side with the Security Alliance to trace the stolen funds. Additionally, Beosin established that Polter Finance has maintained a proactive approach to reclaiming the stolen funds.
Side Note on Polter Finance Hack
It is worth mentioning that following the attack on Polter Finance, the DeFi protocol suspended operations to reduce the impact of the attack. Investigation into the accident traced the loot to wallets on leading cryptocurrency exchange, Binance.
As part of its efforts to reclaim the funds, the project team sent an on-chain message to the hacker offering to negotiate. However, the hacker refused to respond to the message.
Also, the pseudonymous developer of Polter Finance identified as Whichghost reported the issue to the Singapore Police shortly after the attack. The police confirmed the identity of the founder by identifying him using Singpass, a virtual identity for all citizens and everyone living in Singapore.
As per the police report, Whichghost said the DeFi protocol lost $12 million which includes his funds of $223,219. On the flip side, the attack on Polter Finance has created a controversy with many arguing that the hack is some insider work. Concerned community members pointed out how the BOO market that gave room for the attack only holds $3,000.
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