Polter Finance, a lending and borrowing platform, has fallen victim to a hack that drained its total value locked (TVL) of $12 million.
Polter Finance Grapples with $12 Million Flash Loan Hack
The incident unfolded on Nov. 17, when Polter Finance was forced to pause its platform after identifying an exploit that led to the theft of its funds.
According to security firm TenArmor, the exploit was a result of a faulty oracle price-related flash loan attack on Polter Finance’s newly launched SpookySwap (BOO) market, which had a meagre valuation of just $3,000.
Polter Finance has yet to confirm the precise nature of the attack, but the company has taken proactive steps to address the situation. The pseudonymous founder, known as Whichghost, filed a police report with the Singapore authorities, providing details about the incident and the $12 million loss.
Negotiating with the Hacker and Partnering with Security Firms
Polter Finance has reached out to the hacker directly, offering a negotiation window and the possibility of immunity in exchange for the return of the stolen funds. However, the hacker has not yet responded to the protocol’s overtures.
Recognizing the gravity of the situation, Polter Finance has also announced a partnership with the Security Alliance Information Sharing and Analysis Center (SEAL-ISAC) to aid in the hunt for the attacker and the recovery of the stolen assets.
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