Tron (CRYPTO: TRON) founder Justin Sun's promoted crypto exchange Poloniex has reportedly experienced a security breach in one of its wallets, identified as 'Poloniex 4' on Etherscan, leading to a loss of over $120 million.

This incident has raised concerns among users and industry observers, particularly as discussions about digital asset security are expected at Benzinga's Future of Digital Assets conference on Nov. 14.

The breach was marked by unusual outflows from what is presumed to be the exchange's hot wallet, hinting at a significant financial impact.

However, the exact extent of the loss remains unconfirmed by the exchange. Etherscan data shows that over $120 million of crypto has been hacked from the wallet, The Block reported.

Addressing the situation, Poloniex acknowledged the issue on its customer support platform, stating, "Our wallet has been disabled for maintenance. We will update this thread once the wallet has been re-enabled."

Founded in 2014 and later acquired by Sun in 2019, Poloniex has been a notable player in the centralized cryptocurrency exchange market.

Also Read: BlackRock's Nasdaq Filing Paves Way For New Ether ETF

Following the security incident, Sun has assured users of an ongoing investigation and a commitment to compensating all those affected by the breach.

"We are currently investigating the Poloniex hack incident. Poloniex maintains a healthy financial position and will fully reimburse the affected funds," Sun said.

Additionally, Sun proposed a 5% white hat bounty for the perpetrator, conditional upon the full return of the stolen funds.

He also mentioned a seven-day ultimatum, after which legal action involving law enforcement would commence.

Read Next: Lightspeed Faction Ignites Blockchain Revolution With $285M Venture Fund

Industry titans BlackRock, DTCC, OCC, State Street, Société Générale, Hedera, Citi, BMO, Northern Trust, Citibank, Amazon, S&P Global, Google, Invesco, and Moody’s will join our November 13 Fintech Deal Day and November 14 Future of Digital Assets. Secure a spot here to join them!

Photo: Shutterstock