Disrupting Cryptocurrencies 2: Lessons From the Poly 'Hack'

TitleDisrupting Cryptocurrencies 2: Lessons From the Poly 'Hack'
Publication TypeWeb Article
Year of Publication2021
AuthorsWeaver, N.
Published inLawfare
Access DateAugust 25, 2021

On Aug. 10, the Poly Network was hacked for a record-setting $600 million theft. While the hack itself was substantial, the events and remedial efforts that followed were far more impactful than the financial harm. The cryptocurrency community’s reaction to the theft should alert regulators to the centralized reality of this ecosystem. Despite the decentralized claims, there are a few entities that can (and should) be brought to heel, including “decentralized” exchanges, those funding decentralized exchanges, cryptocurrency miners, and prominent stablecoins like Tether. In particular, these entities must be forced to implement effective anti-money-laundering controls.