Notable Cryptocurrency Thefts: A Comprehensive Overview
As cryptocurrency evolves, it continues to attract more and more attention from fraudsters. In this article, we will examine the most notable crypto heists.
One of the most infamous incidents is the MT Gox theft, which took place between 2011 and 2014, resulting in the loss of over 850,000 Bitcoin. MT Gox attributed the breach to a bug in Bitcoin's system known as transaction malleability, allowing attackers to alter transaction identifiers.
In June 2011, hackers targeted Linode, a web hosting company used by Bitcoin exchanges. This breach led to the theft of approximately 46,000 BTC, affecting various entities, including Bitcoinia, Bitcoin.cx, and Bitcoin developer Gavin Andresen.
BitFloor experienced a significant theft in May 2012, resulting in the loss of 24,000 BTC. The attacker exploited an unencrypted backup of wallet keys, forcing the platform to shut down.
Bitfinex suffered a massive hack in which 119,756 BTC were stolen. Despite utilizing multisig technology, the breach highlighted vulnerabilities in third-party escrow and security measures.
Bitgrail, a small Italian exchange, was hacked in February 2018, leading to losses of $146 million in Nano tokens. The incident underscored the risks associated with insufficient security measures on smaller exchanges.
Japanese exchange Coincheck experienced a breach in January 2018, resulting in the theft of $530 million worth of NEM tokens. A staffing shortage and inadequate security contributed to the successful hack.
KuCoin fell victim to hackers in September 2020, with losses totaling around $275 million. The exchange managed to recover a significant portion of the stolen funds.
A flash loan attack in May 2021 saw hackers siphoning off $200 million from PancakeBunny. This incident highlighted the risks associated with flash loans and price manipulation.
One of the largest crypto thefts occurred in August 2021, involving the hack of Poly Network and the theft of around $600 million. The hacker returned most of the stolen funds, and an unusual dialogue ensued between the hacker and Poly Network.
In October 2021, Cream Finance suffered a hack resulting in the theft of $130 million. The attacker exploited a complex transaction involving multiple assets.
In December 2021, BadgerDAO was targeted by hackers, leading to the loss of $130 million. Phishing and API key vulnerabilities contributed to the breach.
Bitmart experienced a hot wallet hack in December 2021, losing about $200 million across multiple tokens on both Ethereum and Binance Smart Chain blockchains.
A $328 million breach occurred on Wormhole in the Ethereum and Solana bridge. The attacker exploited minted tokens to claim Ethereum held on the Ethereum side of the bridge.
Ronin Network (Axie Infinity)
Ronin Network was hacked in March 2022, resulting in a loss of $620 million. The exploit impacted Axie Infinity and its related entities.
In April 2022, the Beanstalk governance protocol was targeted, leading to a loss of $181 million. A fraudulent proposal and flash loan were used in the attack.
Horizon Bridge (Harmony)
Hackers targeted Harmony Protocol in June 2022, stealing $100 million worth of cryptocurrencies, including ETH, BNB, USDT, USDC, and Dai.
In November 2022, hackers targeted FTX, resulting in a loss of $415 million. FTX was able to recover a significant portion of the stolen funds.
These cryptocurrency thefts underscore the ongoing challenges and vulnerabilities within the digital asset ecosystem, highlighting the need for robust security measures and proactive risk management strategies
Remember, you should always examine any claims made about crypto investments, especially if they appear too good to be true. Also, do not trust the party that personally contacts you for any investment in BTC or other cryptocurrencies!