Crypto Lender Polter Finance Shuts Down After Hack Drains Nearly All Funds
Polter Finance, a decentralized lending platform on the Fantom blockchain, has shut down following a hack that drained most of its assets. The exploit involved manipulating token pricing mechanisms leading to significant financial losses. The hacker transferred funds through an Ethereum-based mixer and bridged them to Fantom, resulting in unauthorized transactions that emptied user assets. Initial reports estimated losses around 16.1 million SGD (approximately $12 million), but later assessments suggested around $7 million was actually stolen. The attack exploited vulnerabilities in the platform's valuation of the SpookySwap BOO token, allowing the attacker to withdraw much more than deposited by inflating token prices through a flash loan. In response, Polter Finance temporarily paused its platform and is collaborating with authorities to investigate and trace the stolen funds, even offering to negotiate with the hacker for their return. This incident reflects ongoing challenges with security in the crypto sector, which has seen over $2 billion lost to hacks in 2024 alone.
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