A security breach has been reported at Poloniex, resulting in a loss of more than $31 million USD for the crypto exchange.

Total losses are still being calculated as of time of writing, with some estimates placing it above $100 million.

At the time of this report, Poloniex's wallet, post-hack, holds just over $50,000 worth of tokens.

Down For Maintenance

Immediately upon detection, Poloniex went into maintenance mode.

This, however, did not stop the hacker from siphoning the funds.

The hacker has also apparently bought $20 million worth of Tron (TRX) - leading to a growth in the token's price by more than 25%.

As of time of publication, Poloniex did not respond to Coinlive's request to comment.

Support From Web3 Community

Poloniex is owned by crypto mogul Justin Sun.

The billionaire, who also owns a founding stake in HTX, purportedly bought the exchange as part of an investment group in 2019.

He has taken to the X (formerly known as Twitter) to offer a 5% bounty to the hacker.

Seperately, crypto intelligence platform Arkham Intel has also created a bounty to help identify the person or organization behind the Poloniex exploit.

Binance's CZ Zhao has also commented on the issue, stating that Binance is ready to support to stop funds if the hacker were to use their platform.

Troubled History

Poloniex changed hands in 2018 when Circle acquired it for $400 million.

Once a dominant force with over 50% market share, Poloniex's recent decline in transaction volume culminated in its share dropping to a meager 1% before the recent hack.

This incident follows a tumultuous year for Poloniex, marked by a $7.59 million fine in May for sanctions violations.

The U.S. Treasury Department's Office of Foreign Asset Control (OFAC) identified nearly 66,000 violations involving customers from Crimea, Cuba, Iran, Sudan, and Syria trading up to a cumulative $15 million between January 2014 and November 2019.