WHAT LED TO THE TOP THREE MAJOR CRYPTO HACKS?

In the current era of 2022, everyone is familiar with the buzzwords, Cryptocurrency, blockchain, Defi, and Web3. Rising at a tremendous pace, digital currencies have taken over the market by storm. Technological innovations have allowed several industries to adapt to digital currencies for their unique operations. Cryptocurrency is indeed a phenomenal way to transform traditional payment methods, provide decentralised applications, and even make the supply chain and manufacturing processes hassle-free. A lot of potential bitcode-prime.cloud have made it possible for newcomers and non-investors to trade and earn crypto, providing them with a unique experience. However, everything comes with its own set of pros and cons.

The blockchain technology is decentralised, meaning independent from any central authority or government. Blockchain provides better security than traditional methods. However, this does not limit the risks it holds. Investors, big chain firms, and even financial institutions have faced shocking cyber crimes in the last few years. Read on further to know about the top three significant hacks in the history of Cryptocurrency and why did they happen?

1. Binance

Popular cryptocurrency exchange and trading platform, Binance has provided some of the most excellent applications to its audience in the last few years. With a user-friendly interface, the platform is well-known among big businesses and even individuals. Binance holds a portfolio of over 394 different tokens and 1668 active markets. Due to the large scale and popularity of its name and reputation, it got higher threats and made it to the list.

Binance faced horrific exploitation in May 2019. Around $40 million worth of Bitcoins were abducted. Hackers successfully gained access to the Binance security system and fetched sensitive data elements, including APIs and two-factor logins. The bitcoins stolen were linked to a single wallet. Moreover, Binance set up an insurance fund to cover the losses of its users after the incident.

2. Mt. Gox

Defined as the first major cryptocurrency hack, Mt. Gox was a Japanese-based crypto exchange platform started in 2010. The platform was one of the largest global exchanges in 2011 and managed more than 70% of bitcoin transactions. In 2011, around $8.75 million of Bitcoin were stolen from the platform, making it the first attack on the company. In response, developers improved the security and code to prevent further attacks.

However, in 2014, Mt. Gox witnessed another exploit, despite the security changes they made. This time, around $615 million worth of BTC was abducted by fraudsters in no time. This was done by building fake bitcoins and doing extensive exchange via them.

Moreover, investigations mentioned that the company’s private key was also stolen and decrypted in 2011 during the first attack. This resulted in the company facing financial problems and lawsuits to recover the money for its users.

3. Coinbene

In 2019, Coinbene made it to the list of top 10 cryptocurrency exchanges but was also a victim of cyber exploits. The Singapore-based organisation was active in more than 192 countries. In March 2019, hackers managed to steal the platform’s $105 million of different tokens and currencies. As a result, the company refused to provide details and suggested a shut down for maintenance activities. However, investigations revealed that the company took no further actions, and the hackers used the stolen money for trading on other platforms. Coinbene also provided no recovery to its users for the money lost.

SUMMARY:

Along with advancements comes more significant risk and high security. The era of 2021 was seen as the biggest year of cybercrime in the cryptocurrency industry. According to research, it was revealed that around $14 billion was stolen from the industry last year, and very little has been recovered. Binance, one of the most trusted and popular cryptocurrency exchanges, saw a massive downfall in 2019. While on the other hand, significant firms such as coinbene and mt. gox faced massive exploitation with little to no recovery.

Crypto crimes somewhere discourage potential investors and even businesses from investing. However, one can experience a pleasant cryptocurrency journey by being aware of and browsing every solution. While trading, it’s crucial to keep confidential data private and only invest on a trusted platform.

The crypto market has witnessed several ups and downs when it comes to economic markets and big-chain businesses. Sudden collapse and cyber crimes are a part of it, and the industry needs to stay updated and provide necessary changes to its security database. This will allow users to invest safely and build trust in the company.

Huynh Nguyen

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