‘Mr White Hat:’ The story behind a $600m crypto caper

https://www.irishtimes.com/business/technology/mr-white-hat-the-story-behind-a-600m-crypto-caper-1.4647737

How an alleged thief morphed into a self- styled vigilante policing the digital asset world

An hour after the world discovered an alleged hacker had made off with $600 million (€508 million) in one of the largest-ever cryptocurrency heists, the thief tipped a bystander $42,000 for warning that some of the assets were being frozen.

The apparent act of generosity was only the first unexpected twist in a virtual robbery that has gripped the crypto industry and left many observers scratching their heads.

The mystery hacker’s target was an obscure group called Poly Network, a project in the world of decentralised finance, known as DeFi, which links together some of the most widely-used digital ledgers. DeFi is the cutting edge of the digital asset world. Developers are building automated networks to allow individuals and companies to skip fee-charging intermediaries such as banks and exchanges.

In the crypto market, all transactions can be seen on digital ledgers. Poly took advantage of this feature in the same way a bank can alert authorities to the serial numbers on stolen cash. It called on other industry participants to “blacklist” the stolen loot, making it much more difficult for the hacker to move it without getting caught.

With escape routes rapidly closing down to move such a large sum, the hacker began making the case that they were an altruistic thief, out for a good time and to showcase Poly’s vulnerabilities for the greater good.

“I hope my life can be composed of unique adventures, so I like to learn and hack everything in order to fight against the fate,” the hacker wrote in messages that can be viewed on a blockchain. Working out the blind spot of Poly Network “would be one of the best moments in my life,” said the hacker, who has yet to be identified.