History of cryptocurrency incidents
Cryptocurrency is conquering the world rapidly. It is considered that the main distinctive features of cryptocurrency are decentralization, anonymity and security. However, deception, fraud, extortion, hacking are only a part of the methods with the help of which your cryptocurrency can be stolen.
According to the company specializing in cyber security, more than $ 1.1 billion in cryptocurrency equivalent was stolen during hacking only in the first half of 2018. Let’s look at the top five of the loudest attacks in the crypto industry in this article.
- The Mt. Gox. Hack (2014). Not many people know that this is a very famous hack of the Japanese stock exchange. Mt Gox was hacked twice, and during 3 years tokens worth almost $ 460 million were stolen. Unfortunately, the company declared bankruptcy.
- Bitfinex (August 2016) is considered to be the second largest burglary in the world of cryptoindustry. Hackers managed to steal 120,000 bitcoins from users’ wallets. In order to restore the loss after the attack, it was decided to reduce the balance of all wallets on the exchange by 36%. In 2017, all losses to clients were reimbursed.
- NiceHash Hack (December 2017). Hacking caused great damage to the company, namely more than 4,000 Bitcoin tokens. This time, hackers turned their attention to mining services.
- Coincheck (January 2018) this is one of the most massive hacks in history – the attackers got more than 500 million coins called NEM. The company was indeed vulnerable, and Coincheck did not implement a multiple signature mechanism, which made it difficult to transfer funds.
- Coinrail (June 2018) managed to save 70% of assets that were moved to cold storage during the security audit. According to the specified data, hackers stole more than 40 billion won (about $ 37.28 million)
As shown by successful hacks, vulnerabilities in the digital world are not limited to older systems. To secure your cryptocurrency you need:
- Not to keep money on the stock exchange, since it is the stock exchange that is the main target of hackers.
- To create strong and complex passwords.
- To use cold storage.
- Not to tell the world through social networks about the exchanges or wallets where you keep all your crypto coins.