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 and hacking are only some of the methods that can be used to steal your cryptocurrency.
According to one company specializing in cyber security, more than $1.1 billion in cryptocurrency was stolen via hacking just in the first half of 2018. Let’s look at the top five recent attacks in the crypto industry:
- The Mt. Gox Hack (2014). This is a very famous hack of the Japanese stock exchange. Mt Gox was hacked twice, and in 3 years tokens worth almost $460 million were stolen. Unfortunately, the company declared bankruptcy.
- Bitfinex (August 2016). This is considered to be the second largest burglary in the world of cryptocurrency. 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). They 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. Here’s how to secure your cryptocurrency:
- Do not keep money on the stock exchange, since it is the stock exchange that is the main target of hackers.
- Create strong and complex passwords.
- Use cold storage.
- Do not tell the world through social networks about the exchanges or wallets where you keep your crypto coins.