Cryptocurrencies are an attractive target for hackers. With the rise in popularity, prices of cryptocurrencies have skyrocketed over the past few months. The value of a single Bitcoin has crossed the $10,000 threshold from just below $1,000 less than a year ago.
However, this price surge has also brought with it increased awareness and more cybercriminals trying to get their hands on digital assets. Crypto hacks are on the rise and they’re becoming increasingly sophisticated. From exchange heists to wallet dumps.
Coincheck Hack
On January 26, 2018, Japan-based cryptocurrency exchange Coincheck announced that it was hacked, resulting in the loss of around $500 million worth of NEM tokens. In a report published by Reuters.
Coincheck said that the hackers stole tokens worth $532 million, including $400 million worth of NEM tokens that were stolen on January 26 and $132 million worth of tokens that were stolen the next day.
On the same day when the Coincheck hack happened, NEM issued a press advisory, saying that the hackers stole the $400 million worth of NEM tokens.
Coincheck said that they were investigating the security breach and trying to recover the funds. On February 6, Coincheck announced that they were starting to return the stolen funds, starting with NEM tokens worth $217 million.
Tether Hack
On November 19 last year, the popular cryptocurrency exchange Tether, which issues the USDT token, was hacked. The hackers stole a total of $31 million, which is about a fifth of the total USDT tokens in circulation.
The hackers stole the funds by getting ahold of the private key for the Tether bank account containing the funds. The private key was then used to transfer the funds to another wallet.
Tether is a cryptocurrency that allows users to exchange one USD for another. USDT is not a cryptocurrency on its own; rather, it is backed by actual US dollars held in a special account. Like all cryptocurrencies,
It is used as a trading tool and therefore has the potential to grow in value and be a powerful financial tool that people can use to exchange one currency for another.
Binance Hack
Binance, Asia’s largest cryptocurrency exchange by trading volume, reported a security breach that resulted in hackers stealing $13 million in cryptocurrency.
The hackers were able to get ahold of user information, including 3,000 usernames and passwords. The company said that the hackers were able to transfer the stolen cryptocurrency to an unauthorized wallet.
Binance has now closed the security breach and is working with law enforcement to identify and prosecute the hackers. The company said that there has been a growing trend of hackers stealing cryptocurrency from exchanges.
Cybersecurity experts say that the stolen cryptocurrency is probably being transferred to other wallets. The company also stated that it is fully cooperating with law enforcement as well as internal investigations.
Bitfinex Hack
The world’s largest Bitcoin trading platform Bitfinex confirmed a hack that has caused the loss of $75 million worth of cryptocurrency, which includes $60 million worth of Bitcoin.
The exchange said that the security breach occurred on August 2, and the hackers were able to get ahold of the private keys to 119 Bitcoin wallets, which were holding 120,784 Bitcoins. Bitfinex said that they are working with law enforcement to identify and prosecute the hackers. As of now, it’s unclear what other information has been leaked.
EOS Account Hack
Last year, a $100 million EOS account was breached. The breach was discovered by Block. One is the company that developed the EOS blockchain.
One said that the account was breached on June 19 and the hackers transferred $98 million worth of EOS tokens. Block. One said that the hackers gained access to the account by exploiting a “bug in code that exchanges use to manage their customers’ EOS accounts.”
Cardano ADA Hack
Last year, a hack resulted in the loss of $3 million worth of the cryptocurrency Cardano. The hack was discovered by the company Emurgo, which is the Cardano company behind several blockchain-based companies. Emurgo said that an unknown hacker executed a transaction that resulted in the loss of ADA tokens.
The hack came as a surprise given that the Emurgo website was hacked in July 2018. The website was hacked for a second time and the hackers made off with $3 million worth of ADA tokens.
Conclusion
With the rising popularity of cryptocurrencies, there is also an increase in the levels of sophistication among cybercriminals when it comes to hacking cryptocurrencies. From the Coincheck hack to the Tether hack, the number of incidents involving cryptocurrency hacks has increased significantly.
There are several ways to prevent a cryptocurrency hack. It is important to have a secure wallet for your cryptocurrency. If you are storing your cryptocurrency in an unsecured wallet, there’s a high chance that it could be hacked.
It is also important to ensure that you’re not falling for phishing emails or websites that fake security updates.
