Security is a major issue in the Crypto-verse, which is a real challenge for cryptocurrency holders and a big fat attraction for hackers. Even more so, considering the wildest crypto hacks in history.
Today’s blog post will give you great examples of why there’s never extra security when it comes to storing crypto assets.
The story of 92 billion bitcoins (2010)
In August 2010, the only major security flaw known to date was found in Bitcoin’s code, and misused. A hacker managed to create 92 billion bitcoins out of the blue. Well, not bad, considering what Bitcoin was worth, say, back in 2017. The hack was real, but the community managed to act quickly and cancel the suspicious transactions.
Mt. Gox (2011-2014)
Mt. Gox is the absolute largest Bitcoin hack to date.
If you’ve heard the name for the first time, Mt. Gox used to be the world’s #1 crypto exchange; handling more than 70% of all Bitcoin transactions at the time.
In February 2014, hackers were reported to have stolen 850,000 bitcoins over a period of three years. 750,000 of the coins came from Mt. Gox’s customers. What really happened is that someone was able to edit transaction details to make it look like the transaction was never really executed.
The DAO (2016)
It’s not all about Bitcoin if you were wondering. There was also a hack that happened to Ether – the DAO.
To make a long story short, the DAO was a smart contract on the Ethereum blockchain, operating like a venture capital fund and managed to raise 12.7 ETH ($150 million) in the original crowdfunding phase.
In June 2016, a hacker discovered a loophole in the DAO, creating a so-called “Child DAO”. As a result, $50 million was lost.
The hack lead to a soft fork and the splitting of the Ethereum community.
In December 2017, NiceHash, which is a Slovenian crypto-mining marketplace, announced a hack.
It remains unknown how many bitcoins were stolen, but the suspicious Bitcoin wallet held 4,736.42 BTC, or $70 million.
In 2018, Israeli-Swiss decentralized exchange Bancor lost $23 million as a result of a hack.
The hackers reportedly made $12.5 million in ETH, $1 million in NPXS, and $10 million in Bancor’s native BNT coin.
The Coincheck hack also happened in 2018. Coincheck is a Tokyo-based crypto exchange. The hack targeted NEM, a popular altcoin.
500 million NEM coins were lost, equivalent to 5% of NEM total supply, worth about $550 million at the time of the hack. Luckily, the value dropped more than 20% after the hack.
Our advice? Keep your enemies close, but your cryptos closer!
The CoinMetro Team