It’s hard to deny that the word cryptocurrency blend with our day-to-day life. Last year we with our hearts being tugged monitored the rise and fall of Bitcoin. Numerous people were tearing their hair out remembering how they have tanked their bitcoins when this cryptocurrency has been almost worthless.
This year Forbes at first in its history included in the list of wealthiest people in the world billionaires who made a fortune in cryptocurrency. But cryptocurrency is not always a launch pad for getting filthy rich in a short time it can burn down all your investments as well because of inadequacies of exchange security system. Here is a look at the ten most famous breaches.
February 2014: Mt. Gox lost 473 mln dollars in bitcoins
June 2016. An anonymous decentralized organization was hacked
July 2016. Website Steemit.com was hacked
August 2016. A cryptocurrency exchange Bitfinex was hacked
July 2017. CoinDash was hacked
July 2017. Parity was hacked
July 2017. Veritaseum was hacked
August 2017. Enigma break-in
November 2017. Tether was hacked
January 2018. Coincheck break-in
It was the first huge money loss on a cryptocurrency exchange. We say loss instead of theft because details of the incident are still unclear. At first Mt. Gox announced missing 850000 bitcoins. Since then 200000 bitcoins have been mysteriously found. Nobody could provide a clear picture of what could happen to money – theft, fraud, mismanagement, or a combination of these – but the fact is, customers of the Mt. Gox cryptocurrency exchange have lost almost half a billion dollars. This has resulted in numerous lawsuits against the exchange which led to its bankruptcy before the end of 2014.
Hackers stole 50 million dollars in ethereum from online wallets as a consequence of the critical security vulnerability in the organization’s code. This led to the Ethereum blockchain split into Ethereum and Ethereum Classic.
Within a month of the theft listed above a blockchain-based social web Steem was hacked. Hackers stole all money from all the 260 accounts. The theft total was about one million dollars.
A summer of cryptocurrency break-ins culminated in the one more grand theft. Hackers broke into the one of the most famous exchanges Bitfinex and according to various estimates stole from customers’ accounts between 65 and 72 million dollars in bitcoins. All money was stolen from online wallets with multilevel protection.
CoinDash break-in is different from anything listed above because it was not an actual break-in, it was more like a fraud. Hackers sent letters on behalf of the company allegedly attracting funds within ICO. Long story short hackers fled away with totals of 7 million dollars or 45000 in ethereum terms. Surprisingly, but hackers returned part of the funds, 10000 ethereums last September and 20000 ethereums this February.
Hackers discovered a vulnerability in Parity online wallet and gained access to funds raised within ICO for several blockchain projects: Edgeless, Casino, Swarm City and Aeternity. In total intruders stole 32 million dollars in ethereum.
Another one July’s break-in was not original. Hackers used a well-established-pattern of gaining access to the online wallet with attracted ICO funds. Theft cost investors 8 million dollars.
Preparatory to money theft hackers made up a sham page of general manager of the project and sent a mailing on behalf of his name for raising funds. They were able to raise a relatively small total of half a million dollars in ethereum.
The company reported that because of vulnerability in the system hackers stole 31 million dollars in Tethers from online wallets. Tether cryptocurrency has the same weight in cryptocurrency world as the dollar has in the world economy, meaning a theft from Tether was a high-profile case. Nevertheless, just like in the case of Mt. Gox, details of this crime are still unclear.
It is the latest high-profile cryptocurrency exchange break-in scandal. Hackers stole a record 530 million dollars from customers’ accounts. This case even took Japanese government attention prompting it to strengthen the control over the cryptocurrency exchanges. So far, it’s the grandest break-in in cryptocurrency history.
It’s important to remember that frauds can remotely use the capacity of your device for mining. They embed mining script in ads on the website, and when you visit it the script can tap into your computer or smartphone. You won’t even notice it’s working but your device will become more and more rugged. If you want to prevent external invasion, install an ad blocker AdLock. Among other functions, it protects your device from external threats including mining scripts.