In the short history of cryptocurrencies, we faced lots of problems such as disbelievers, accusers, shouters etc… Despite all the negativities, Bitcoin and its technology are still in progress and getting more supporters day-by-day. In such a period of revolution, there are always many thieves around us. I never calumniate any of you, don’t worry. But my goal is to show ‘’how crypto world is huge’’ even it’s said that we need more and more progress in terms of total market capacity and also to show ‘’the 5 biggest hacks’’ after 10 years of exchange history. I’m also interested in writing these Top 5 Things as you can understand from my previous articles ‘’Top 5 Biggest Blockchain Transactions Ever Made’’ and ‘’Top 5 Most Profitable Exchange Tokens in Q1, 2020’’ . Maybe I can transform them into a #series form in upcoming future…
(Photo by Ben Sweet on Unsplash)
Now let’s came back to our main topic, the biggest cryptocurrency heist. As you all know as a trader or even a technology believer, one of the main problem to be solved is security in all terms. Lots of hacks and fund losses were happened in past 10 years of exchange history but even though 10 years passed, none of us is able to say that ‘’This one is absolutely secure, I can deposit and never face with a hack.’’ So the problem is still ongoing and it seems that we need more and more time to secure these exchanges to bring more people into crypto world.
Number 5. NiceHash Hack worth 64 million$
NiceHash, which is a Marketplace for buy&sell Hash Power and exchange for cryptocurrencies, got hacked on December, 2017. After the hack, the team firstly made an announcement that declares this situation as website maintanance but later on the reddit post revealed the reality. On any of announcements, the team didn’t tell anything about how much crpyoto are stolen.
Importantly, our payment system was compromised and the contents of the NiceHash Bitcoin wallet have been stolen. We are working to verify the precise number of BTC taken.
Even though the team didn’t announced the exact amount of stolen Bitcoin, NiceHash users found a wallet that possibly received Bitcoins from hack. And counts about 4,736 BTC worth 64 millions of dollar at that day’s price.
Number 4. Bitfinex Hack worth 72 million$
On August,2016 Bitfinex which is still one of the leading cryptocurrency exchanges got hacked. At that day, it’s said that Bitfinex has the largest liquidity all over the world. After the hack Zane Tackett, Director of Community & Product Development for Bitfinex, told Reuters that the amount of stolen Bitcoins are 119,756 in total number. And it costs about 72 million$ at that day.
The bitcoin was stolen from users’ segregated wallets.
Number 3. BitGrail Hack worth 195 million$
On February 2018, Italian cryptocurrency exchange BitGrail got hacked and declared that nearly 17 million Nano (XRB) tokens got stolen by their users’ accounts including the developers of that cryptocurrency. So there’s point that I must talk about. Nano, the stolen cryptocurrency, is not as well-known as today’s and one of the main portal to trade XRB is BitGrail. So, there’s a dispute over there.
After the hack Francesco Firano, the CEO of BitGrail, claimed that the reason behind the hack is software vulnarabilities of Nano’s software while the Nano team strongly denies it. After several discussions, Nano made a hard fork with the enforcement of investors. This is the firs-ever fork to be made to recover stolen funds of investors&users.
Number 2. Mt. Gox Hack worth 470 million$
Mt. Gox was launched in 2010 and became the leading crypto exchange website in the following 4 years. Even though this success in growing market of cryptocurrencies, we understand that they’re not as successful as in security part. On February 2014, the website went offline and a document released. In the docement, the team told us that 744,408 BTC was stolen from users’ wallet and about 100,000 BTC was stolen from Mt. Gox’s wallet itself. It is worth about 470 million$ at that time and counts more than 4% of ALL Bitcoins to be mined. That’s really huge! After that the law had worked against the team of Mt. Gox’s.
(If interested, you can check whole details from related Wikipedia page)
Number 1. Coincheck Hack worth 534 million$
On January 2018, maybe the best period for cryptocurrencies, Japan-based cryptocurrency exchange Coincheck got hacked and lost nearly 523 million NEM tokens. When we try to find out the reason behind hack, we understand the main concept of today’s cold wallet storage shows up. Coincheck team has announced that ‘’NEM tokens are held in a hot wallet’’ which is more susceptible to heists comparing to cold wallets. and it showed that why we, exchange and any single participant of crypto world should even must use cold wallets. Even though it’s the largest cryptocurrency heist ever made so far, Coincheck achieved to be part of crypto world and the website is still online.
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