Given the sudden price drops, constant volatility, and the current crisis, cryptocurrencies are not the best option for investment. Being completely digital, stored and traded online, cryptocurrencies have their own Increased risk of abuse. I have discussed in this article a file Five heists in the cryptocurrency industry Which led to huge losses.
Poly Network Hack
This hack occurred inAugust 2021 She is one of the The biggest heists in the cryptocurrency industry. Poly Network is an online platform that supports Defi and crypto transactions in various block chains. easy Convert cryptocurrency between chains using smart contracts. more than 600 million dollars Many cryptocurrencies were lost in the cyber attack.
Hackers abused access rights Between two great decades called EthCrossChainManager And EthCrossChainData. The crucial point to note is that the last nodes are not available to anyone within the network and can be It can only be accessed by the owners. Previous contract can Play messages from another thread With multiple series units.
I highly recommend watching this video from Coffeezilla, a channel dedicated to cryptocurrency heists. In this video, the speaker explains the hack clearly. The best part is that you can see the real pictures of the hacker’s conversation with the Poly Network team.
The problem was initially identified by Mr. White Hatwhich becameDetective. In a chain of events, it was The hacker sent a ransom. Poly Network fraud turned into a game when the hacker persisted in one game Question and answer session explaining thatThe goal behind the hackin order to get the audience out The weakness of the cryptocurrency world.
Impressed by the hacker’s talent, the company made one Appointment of chief security officer. The hack led to lights flashing around system glitches. At the request of poly network hacker Restored 342 million resources.
$260 million (as of Aug 11 04:18:39 PM + UTC) has been returned in assets:
Ethereum: $3.3 million
BSC: $256 million
Polygon: $1 million
The rest is $269 million on Ethereum, and $84 million on Polygon
– Poly Network (@PolyNetwork2) August 11, 2021
KuCoin cryptocurrency theft
It was named after Biggest Cryptocurrency Exchange Hack of 2020. A North Korean hacker group called Lazarus managed to steal. $275 million The value of the cryptocurrency of KuCoin.
This group is notorious for conducting other cryptocurrency heists such as Hack UpBit 2019. It has caused a loss of cryptocurrency worth 49 million dollars. Experts believe that this hacker group provides money for North Korea’s nuclear weapons program.
The Lazarus group Transfer the stolen money to the blenders with a regulated payment that can be higher or lower depending on the total amount. Each batch output is waiting to be confirmed by the mixer. Later, the money is transferred to OTC broker. But once the problem occurs, the company It recovered $240 million by freezing the assets.
BitGrail is an Italian company that trades Bitcoin and Nano. Nano was the new cryptocurrency on the block and was popularly traded on the Italian crypto exchange. At some point, the price The price of the cryptocurrency Nano has risen to $ 33 And now the hack has happened.
Francisco VeranoThe founder of BitGrail halted all operations and issued a public statement stating that the Nano wallet was hacked. approx 17 million coins stole and Total losses are estimated at about $170 million. Unlike other hacks, officials think so organized, the chronology of events also supports their claim. nano development team He accused the company of being on the verge of bankruptcy. In 2020, the Italian police opened an investigation with the company into the theft.
Months before the hack, most users had Transaction problems Withdrawal limit has been reduced 10 BTC to 1 BTC. Another questionable event is Ban on non-European users. Every transaction activity follows strict protocols. But, Verano’s Ledger Amendment Request To cover the losses drew him all doubts.
Nano development team revealed problems in A post average Hinge. They have too Inform the audience of Verano’s request To adjust the ledger to cover losses. This is unethical, so the team decided not to do it and started Take revenge on the founder. This request from Verano backfired and diverted attention to him. You can read the Medium post written by the Nano developer team and published on February 9, 2018: Official Statement on Bitgrail’s Bankruptcy.
queen bean It is one of the popular stock exchanges in the world Supports cryptocurrency trading and trade in More than 190 countries. In March 2019, cybercriminals hacked into a cryptocurrency exchange with an extension A loss of 105 million dollars of cryptocurrencies. Initially, the cryptocurrency exchange did not disclose the news, but it closed the exchange, at Disguise as a maintenance activity.
The scam emerged after a full investigation of each transaction, one of which occurred on March 25, 2019 Huge export deal from CoinBene . walletWhich stopped all activities that hide under the name of maintenance. However, on March 27, 2019, . was released Data Scientist Elementus He released a report describing money transfers from a hot CoinBene wallet.
In this report, they mention the date and time related to all transactions on the cryptocurrency exchange.
March 25, 2019, more Deals worth up to $105 million Transferred from hot wallet a Three different addresses.
On the same day around 6:24 pm, the hack was discovered by the end of the company and Stop all hot wallet activity. Hot wallets have not worked for 8 hours. The next day, all the money was transferred from the hot wallet directly to the cold wallet.
At this point already criminals Trading stolen currency Like huobipole token, Pundi X, Maxim Coin and Udoo in More cryptocurrency exchanges. CoinBene claims that the maintenance downtime is a preventative measure and is working to improve the overall security of exchange wallets. Until now The lost coins have not yet been tracked.
CoinCheck is one of the popular digital currency exchange site in Japan. The hack was one of the biggest cryptocurrency thefts ever, with a loss 500 million dollars in digital symbols. Once the penetration is analyzed, Deposits and withdrawals are blocked In all cryptocurrencies. Coincheck has not officially released the reason for the hack. However, experts say it all started with a phishing email infecting users’ servers and laptops.
The team has track money movement and try to restore it. The team analyzed and published 11 addresses where all stolen coins are stored. The downside is that Account ownership was not traceable. Hackers can still cash out cryptocurrency using various services.
How does cryptocurrency theft happen?
Cryptocurrency has become More traditional investment tools right Now. They have gained great traction from investors and cybercriminals. Being an entire online entity they are highly vulnerable to Cyber crime activities and penetration. The result is Losing billions of dollars.
Standard cryptocurrency exchange is hacked via Phishing and malware. Users are closely tracked and dispatched Phishing emails with malicious payloads. As soon as the user clicks on the email, the cybercriminals open the gate to hack all your details and gain access to your crypto assets to loot them. Another way is to drive double spending It occurs at ATMs for cryptocurrency. The defaulters initiate a transaction, receive a cash payment and cancel it.
If there is a fileBackward acquires 50% of the total mining power Resulting in weak coins being hacked. can cause Change of financial history It is technically called 51% Hack. Secret key theft is also a technique used to hack cryptocurrencies. The keys are stored in the cryptocurrency wallet and there are great opportunities for this Get the initial sentence.
Tips to protect your cryptocurrency.
these Cryptocurrency theft clearly show that Cryptocurrency exchanges are not secure. In most cases, lost tokens are not replenished. If you are interested in investing in cryptocurrency, you must know this Tips to protect your investment.
If you look closely, there is one Similarities between all hacks. there Cryptocurrency stored in hot wallets is the main target of cybercriminals. Using cold wallet is the best choice for Protect your cryptocurrency. Unlike hot wallets, cold wallets are offline and cannot be hacked, they are more secure than hot wallets.
using a Safe internet for trading And executing crypto transactions can prevent your wallet from being hacked. Never use public Wi-Fi And even when accessing your home Wi-Fi, be sure to use a VPN for added security. Change the IP address and location. Another important thing is Own multiple wallets; This can Diversify your investments in cryptocurrency And reduce the risk of loss due to security breaches.
Change your password regularly And make sure it’s strong enough Significantly reduce the chances of your wallet being hacked. It is essential to avoid phishing and malicious emails in the cryptocurrency world. I highly recommend this video for more tips on how to do it Increase the security of your cryptocurrency.
The main goal is to educate readers and investors to know how to do it Cryptocurrency exchanges tend to be hacked. Some of the largest cryptocurrency exchanges and security breaches clearly show that the cryptocurrency world is not entirely trustworthy. However, as improvements are implemented every day, this may change.
It is imperative that cryptocurrency exchanges be loud Always vigilant and watchful activities taking place in the sector. While it is transparent, it is subject to Cafe attack. Strong security aspects Sometimes they may fail to protect against cybercriminals. The latest executive order signed by Joe Biden also focuses on regulating Cryptocurrency sector And improve its reliability And investor safety along with many other factors. This will definitely help investors to make an informed decision.