30s Summary

Polter Finance, an online lending and borrowing platform, suspended operations following a cyber theft of $12 million. They announced the security breach on 17th November and traced the stolen assets to Binance exchange. The theft allegedly happened due to a glitch involving a flash loan attack on Polter’s SpookySwap market. The company founder reported their losses amounting to SGD 16.1 million ($11.98 million) to the Singapore Police, denying any internal involvement. Amidst speculations of an inside job, they have partnered with the Security Alliance Information Sharing and Analysis Center for investigating the theft.

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Polter Finance, an online lending and borrowing outfit, has hit the pause button on its operations and called in the cops following a cyber robbery that took its total value down by $12 million. They made the move on the 17th of November after realizing there was a breach, and alerted their investors on the social media platform X. The lost funds were tracked back to digital wallets at crypto exchange Binance. According to TenArmor, a web security company, this theft came about due to a glitch relating to a flash loan attack on Polter’s newly unveiled SpookySwap market, which cost them $12 million. They’ve yet to confirm how the breach happened.

Despite the silence from Polter, they tried reaching out to the hacker, trying to negotiate terms for getting the money back. But there was no reply from the criminal. Whichghost, the elusive creator of Polter Finance, took the matter to the Singapore Police. Backing up his identity with Singapore’s digital ID system, Singpass, he filed a report. The report states that they lost over 16.1 million Singapore dollars ($11.98 million) in digital currency. Whichghost personally lost over $223,219. He, however, stated that he hadn’t given anyone his login details and he’s sure an exploitation of the newly deployed smart contract led to these unauthorized transactions.

Interestingly enough, the market that enabled this multi-million dollar robbery was valued at a mere $3,000. Amidst the effort to recover the assets, some members on X voiced doubts and threw around the idea of an insider job. They raised suspicions about the police report being a way to dunk the shady activities under the rug. In response to these suspicions, Polter Finance forged a partnership with the Security Alliance Information Sharing and Analysis Center (SEAL-ISAC), roping in their help to track down the culprit.

Before the hack, Polter Finance boasted a total market size of $12 million, including $7.87 million of Fantom, $1.03 million of USD Coin, $251,000 of Magic Internet Money, and $2.1 million of Stader sFTMX among others.