Introduction
In the fast-growing world of digital currencies, millions of dollars’ worth of cryptocurrencies are stolen every year. These thefts occur via hacks and exploits on exchanges and networks. A closer look at the five biggest heists in the history of cryptocurrencies reveals how these breaches were conducted, the magnitude of the losses, and the impact on the crypto community.
The Five Biggest Crypto Hacks and Exploits
The following are the five biggest thefts involving cryptocurrencies:
1. Coincheck Hack
In January 2018, Japan-based crypto exchange Coincheck suffered a massive hack, resulting in a loss of $534 million worth of NEM tokens. The breach, which is considered the biggest in the history of cryptocurrencies, was perpetrated by unidentified hackers who accessed the exchange’s hot wallet.
2. Mt. Gox Breach
Before Coincheck, Mt. Gox was the most infamous crypto hack. In 2014, the Tokyo-based exchange lost approximately 740,000 Bitcoins, worth around $460 million at the time. The breach, which forced the exchange into bankruptcy, was blamed on a bug in the software that allowed hackers to steal the funds.
3. Bitfinex Hack
Bitfinex, one of the world’s largest and most advanced cryptocurrency exchanges, was hacked in August 2016. The breach resulted in a loss of 120,000 Bitcoins, worth approximately $72 million at the time. The hack led to a 20% drop in Bitcoin’s price and serious questions about the security of crypto exchanges.
4. DAO Hack
The Decentralized Autonomous Organization (DAO), a venture capital fund operating on the Ethereum blockchain, was exploited in June 2016. An attacker managed to drain over $50 million worth of Ether from the DAO, exploiting a vulnerability in its code. This event sparked a hard fork of the Ethereum blockchain, leading to the creation of Ethereum Classic.
5. KuCoin Hack
In September 2020, Singapore-based crypto exchange KuCoin suffered a security breach that resulted in a loss of $281 million. The hackers were able to access the exchange’s hot wallets and siphon off a variety of cryptocurrencies. However, the exchange managed to recover a majority of the funds through a collaborative effort with other exchanges and law enforcement.
Conclusions
These crypto heists highlight the importance of stringent security measures in the crypto industry. While blockchain technology is inherently secure, the platforms and exchanges built on top of it are susceptible to attacks. As the industry continues to evolve, the security and safety of users’ funds must be a top priority.
