Polter Finance, a lending and borrowing DeFi protocol, has joined forces with DeFi security group Security Alliance Information Sharing and Analysis Center (SEAL-ISAC) to trace and recover $12 million stolen in a recent flash loan attack.
The platform announced the partnership as part of its ongoing efforts to identify the attacker, recover the funds, and restore confidence among its users.
We have reached out and are in touch with the @_SEAL_Org in regards to the $POLTER exploit
— polterfinance???? (@polterfinance) November 18, 2024
The incident, which occurred on November 17, led the platform to pause operations, involve law enforcement, and trace the stolen funds to wallets on Binance.
According to the protocol, the attack exploited vulnerabilities in a newly deployed smart contract, specifically a faulty oracle price in Polter’s BOO token market.
The breach resulted in significant losses as it drained the platform’s total value locked (TVL), which reportedly included $223,219 in personal funds from the protocol’s pseudonymous founder, “Whichghost.”
The platform was paused soon after the exploit was identified.
Bridges were notified.
We identified wallets involved and traced it to Binance.
We are still investigating the nature of the exploit.
We are in the processing of contacting the Authorities.— polterfinance???? (@polterfinance) November 17, 2024
To address the breach, Polter paused platform operations, reported the incident to Singaporean law enforcement, and began tracing stolen funds, which were found in wallets on Binance. “Whichghost” also filed a police report and confirmed that the attack did not result from compromised private keys.
the following is the police report filed regarding @polterfinance exploit $POLTER pic.twitter.com/1PycJIrbZV
— whichghost ???? | Polter Finance (@whichghost) November 17, 2024
Notably, the BOO market at the centre of the attack was valued at only $3,000, raising questions among the community. Critics on X speculated about possible insider involvement, with some suggesting that the police report could be an attempt to shift attention away from internal failings.
Polter has attempted to contact the hacker through an on-chain message, offering to negotiate and ensure impunity if the funds are returned. However, the hacker has not responded as of this report.
The breach mirrors a broader trend in the DeFi space, where platforms are grappling with similar challenges. Just days earlier, DeltaPrime, another lending protocol, faced a $4.8 million hack. On November 13, the protocol’s co-founder Gavin Hasselbaink issued an ultimatum to the attacker via X, threatening legal action if the stolen funds were not returned.
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