Biggest Crypto Hacks of All Time

16/02/2018

Review by the team kript.io
Cryptocurrency became quite a fat plum for hackers and cybercriminals. Millions of dollars have flowed away right from the hands of the founders of successful ICO projects, exchanges, and digital wallets. There are different types of attacks. Phishing, targeted and social networks attacks, break-in wallet, just to name a few. The most dangerous threats to ICOs and crypto investors are phishing and targeted attacks. The former involves spoofing emails and websites to steal personal information and login credentials. The latter is caused by errors in the configuration of application servers or vulnerable software. So do you know all the victims? Here is the list of the biggest crypto hacks in the ICO history.
Coincheck
Stolen: $530 million.
Date: January, 2018.

Coincheck fell victim to the biggest hacking attacks in the Blockchain history. Last month the leading Japanese cryptocurrency exchange was hacked and lost around $530 million worth of XEM. Coincheck didn't use cold wallets for storage. The funds were stolen from its hot wallet which is more vulnerable to hacks. Coincheck representatives made an official statement about their intention to compensate the loss to the users. At this moment, certain payment features and new registrations are temporarily unavailable on the platform.
Mt.Gox
Stolen: $473 million.
Date: February, 2014.

Mt.Gox used to be the largest Bitcoin exchange, handling over 70% of all Bitcoin transactions worldwide in 2013. The first attack on this exchange took place in June 2011. Fortunately, that time Mt.Gox managed to undergo it. The second attack happened in February 2014 when hackers broke into the customer database stealing usernames and passwords. As a result, Mt.Gox lost about 740 thousand Bitcoins at the equivalent of $473 million and went bankrupt.
Bitfinex
Stolen: $72 million.
Date: August, 2016.

Bitfinex was hacked for about $72 million worth of Bitcoins. The reason for that attack was a vulnerability in the wallets with a multi-signature on the exchange. Hackers managed to transfer bitcoins from users' segregated wallets. In several days after the attack, Bitfinex fully recovered after the hack, resumed trading, and compensated the loss for the suffered customers with BFX tokens which were finally redeemed in April 2017.
NiceHash
Stolen: $60 million.
Date: December, 2017.

By the moment of the attack, NiceHash had already become a long-standing famous mining pool. Hackers got access to internal systems and then transferred the bitcoins from the wallet of the company in the amount of over 4,7 thousand Bitcoins equaled to $60 million. As a result, all the users of local wallets lost their funds. Currently, the pool continues working. Not long time ago there came an official statement from NiceHash with a guarantee to pay an indemnity to everyone who suffered the attack.
The DAO
Stolen: $50 million.
Date: June, 2016.

The DAO was designed for building decentralized applications. The project got popular and attracted over $150 million from more than 11 thousand contributors becoming the largest ICO in the history of that time. The hack attack was caused by software vulnerability. Hackers started draining Ether from the major addresses and siphoned more than 3,6 million Ether to a "child DAO" that had the same structure as The DAO. The total sum was worth of over $50 million. To return the stolen Ether developers created a hard fork which resulted in the creation of Ethereum Classic.
Parity
Stolen: $30 million.
Date: July, 2017.

Vulnerability in the multi-signature wallet code used as part of Parity Wallet software was found twice in the history of Parity. The first time it was the reason for the hacking attack in July. Existing bug allowed hackers to steal over 150 000 ETH worth of $30 million. Later on, it turned out that the code contained another vulnerability which was undiscovered at the time of the first attack. This bug was found when an unidentified user accidentally deleted the code library turned into a wallet. As a result, 587 digital wallets were frozen. The total amount of frozen tokens reached 514 000 ETH worth of $162 million. This sum is still frozen, but Parity claimed to solve this problem in 2018.

Content kript.io
Share with your friends in telegram if you like our review
Made on
Tilda