Cryptocurrency Exchange Hacks
Like every other investment, cryptocurrency investors are also vulnerable to fraudulent attacks and theft, the most popular being "Hacking". This is the reason why most experts advise potential investors to ensure that they choose secure exchanges that have adopted various technologies that can prevent hacking.
(Image Source : https://pixabay.com)
Over the years there have been cryptocurrency exchange hacks. This article will try to discuss the various hacks that have occurred since the inception of cryptocurrencies.
Mt. Gox
This is a Japanese Bitcoin exchange and its hack is recorded as the most famous exchange hack in Bitcoin's history. This exchange was not hacked only once but twice.
The first hack occurred in June 2011. The hacker on the 19th of June got access to the auditor's credentials and transferred over 2,600 BTC tokens. These stolen tokens were transferred to a private key on the exchange network which Mt.Gox had no encryption code for. This led to the suspension of the exchange for several days. They were able to regain the trust of users on the network again.
The second hack took place in 2014. This was a time when the exchange was handling almost 70% of all Bitcoin transactions in the world. This time over 750,000 BTC tokens which were equivalent to $350 million was stolen. This hack sank the exchange.
Poloniex
This exchange which was one of the busiest and most popular cryptocurrencies exchange was hacked in March 2014. The hack was as a result of a faulty withdrawal code of the exchange.
After the hack, the exchange stopped operation for some time. A statement was released that 12.3% of each users token will be taken by the exchange. Poloniex as an exchange is still in operation and all users who lost tokens have been repaid by the exchange.
Most unofficial sources have reported recently that Poloniex has been hacked. This means that the exchange is still under the radar of hackers.
Bitfinex
This is the second largest hack that was done in the history of cryptocurrencies. The hack occurred in August 2016. The hack happened because the hackers exploited a vulnerability in the architecture of the exchanges multi-signature. About 120,000 BTC tokens which are equivalent to $72 million was lost from this hack.
After the hack, victims were offered BFX tokens that were redeemable in US Dollars. Although, it took time all investors were refunded their money.
Bitstamp
This exchange was set up in 2011 as an alternative to Mt Gox. Being an alternative, it was not safe enough, in 2015 it was hacked.
The hack occurred in January 2015. It was announced by the team of developers' that an unknown hacker got access to the system and stole about 19,000 BTC tokens which were equivalent to $5 million. After, the hack, operations were suspended on this exchange.
It has recovered from this hack as it continues to operate. It has tried to gain back the trust of its users. To strengthen its security, it has adopted the BitGo multiple-signature wallet. This wallet is used for operational reasons.
There are other minor hacks that have occurred over the years, those mentioned above are the most famous and largest that has been recorded.
Now hackers are jumping-in and derailing/halting the jump of cryptos. Sad!! ;-(
Usefull. Your post can bring awarness so its really valuable too. Prevention is better than cure.
To listen to the audio version of this article click on the play image.
Brought to you by @tts. If you find it useful please consider upvote this reply.
Hackers really are a serious threat to many of the exchanges !! my heart sank when someone created a FUD telling that Binance has hacked . Most of my savings are in that . Hopefully I'm glad now . Thanks for making things clear by creating a catalogue of events :)
wow..
many information this post.. thanks for sharing....
Finding useful information, insurance will serve the community to be alert to any suspected fraud. Greetings from Venezuela
thx for that post! very usefull
Congratulations @cryptoletter, this post is the most rewarded post (based on pending payouts) in the last 12 hours written by a Dust account holder (accounts that hold between 0 and 0.01 Mega Vests). The total number of posts by Dust account holders during this period was 12811 and the total pending payments to posts in this category was $1872.42. To see the full list of highest paid posts across all accounts categories, click here.
If you do not wish to receive these messages in future, please reply stop to this comment.
you forget BTer
They had 50M nxt coins stolen
https://cointelegraph.com/news/breaking-bter-hacked-50m-nxt-stolen
And they also lost 7,170 bitcoins from a cold storage wallet
https://www.coindesk.com/bter-bitcoin-stolen-cold-wallet-hack/
If an exchange is not secure enough, there is no way i will want to have anything to do with it. The other question is how can one know that an exchange is secure? Your post is quite interesting, the content is rich enough and very informative. Thanks.