Poloniex Claims All Customers Repaid Following March Bitcoin Hack
The cryptocurrency exchange is saying it has fully reimbursed all affected customers since it suffered an attack in March.
US digital currency exchange Poloniex has released a new update on the customer repayment plan it implemented following the loss of 12.3% of its total bitcoins in a March attack.
In a new press release, Poloniex claims 100% of the customers who experienced a financial loss have been reimbursed after a hacker or hackers reportedly exploited a vulnerability in the exchange's coding in order to steal the funds.
Speaking to CoinDesk, Poloniex owner Tristan D’Agosta indicated his belief that customers have been adequately and successfully compensated for the site issues, stating:
D'Agosta also stated that Poloniex has since learned from the experience, and that it has adopted additional security measures to reduce the threat of a similar attack, saying:
Poloniex says it repaid customers using what would have been its profits from running the exchange. Based in Montana, the digital currency company trades blackcoin, litecoin and vertcoin, among a number of additional alternative digital currencies.
At press time, at least one customer had confirmed that he had been reimbursed by the company.
Poloniex user and CEO of Israel-based Uppbit.com Dor Konforty told CoinDesk that he has thus far been impressed with the company's transparency during the repayment process, saying:
CoinDesk has reached out to additional customers, who have not yet responded to inquiries.
Though Poloniex suffered a breach of its bitcoin reserves, D'Agosta indicated that it was the success of an altcoin that helped the company escalate its repayment plans.
Though Poloniex was early to list another popular privacy-focused digital currency darkcoin, D'Agosta indicated that darkcoin's trading did not factor as much into customer repayment.
The news of Poloniex's repayment success follows May's headline that online black market website Silk Road 2.0 had reimbursed its users following a February hack.
Both events suggest that such customer repayment plans have seen success, even in the face of early criticisms from users, and that such initiatives could become a viable way for industry businesses to deal with similar setbacks in the future.
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