Poly Network Hacker Returns $600 Million, Offered $500,000 Bug Bounty

White Hat hacker behind Poly Network breach says they will not be claiming the $500,000 reward for exposing a critical security flaw on Poly Network.

by Sam Reynolds /

August 13, 2021 02:09 pm

Source: Shutterstock

Almost all the funds stolen during the Poly Network hack have been returned
On Twitter, digital assets experts debated whether the hackers really were ‘White Hat’ operatives of if they found it too difficult to launder funds at scale

The Poly Network hack has nearly come to a close with a favorable result for stakeholders and users of the network as the hackers that stole close to $600 million have returned their stolen digital loot.

Poly Network confirmed that the process was underway via a Twitter post Thursday, and while on-chain data showed that the funds were being transferred Poly Network also said that they were awaiting a key from the hacker to unlock the wallet. Functionality on the network is expected to be re-enabled shortly after.

Newsletter

Subscribe to The Breakdown

Although the hacker or hacking group that executed the attack claims to be a White Hat hacker — meaning they don’t intend to be malicious — so far they have declined to accept a ‘bug bounty’ of nearly $500,000 for exposing flaws in the network.

Loading Tweet..

Within the White Hat world of information security professionals, bug bounties are a common practice. In exchange for proactively disclosing information about the security flaw and keeping it confidential, hackers are rewarded for their efforts.

However, security firm SlowMist which was working with Poly Network to investigate the hack said that they had discovered the hacker’s IP address and email perhaps forcing their hand to return the funds and claim that they were a White Hat group.

In response to the news, DeFi tokens were generally bullish throughout the US trading session on Friday with Ether up 7%, Cardano up 16%, and Polkadot up 7%.

Want more investor-focused content on digital assets? Join us September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket. Buy it now.

Tags

Newsletter

The Breakdown

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Digital Asset Summit 2026

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

buy tickets learn more

recent research

Research

ERC 8004: Introducing Trust for AI Agents

ERC 8004 introduces a new trust layer for AI agents by standardizing onchain identity, reputation, and validation. As agents begin handling capital and coordinating autonomously, trust becomes the key constraint to broader adoption. The rollout mirrors the early x402 narrative, where adoption lagged the initial launch until major integrations and a viral use case pulled attention into the ecosystem. If ERC 8004 follows a similar path, downstream infrastructure tied to the standard could see outsized benefit as the narrative gains traction. The primary beneficiaries are likely to be agent frameworks and launchpads at the distribution layer, agent to agent coordination platforms that enable delegation and payments, and validation providers that offer stronger security and execution guarantees.

by Kunal Doshi