So, is it possible to hack cryptocurrency? Keep reading to find out!
- Introduction
2. Bitcoin Gold Decentralized Exchange hack
3. The DAO hack
4. Mt.Gox Bitcoin hack
5. BitMart
6. Bitstamp hack
7. How can you protect your cryptocurrency from hackers?
8. Key Lessons
9. Conclusion
Introduction
Cryptocurrencies have been gaining popularity all over the world, with more and more people investing in them. However, as with any other investment, there is always the risk of losing money due to fraud or theft.
Cryptocurrency hacks have become more common in recent years, as the value of Bitcoin and other cryptocurrencies has increased. In this article, we will take a look at some of the biggest crypto hacks that have happened so far.
In the world of cryptocurrency, security is of the utmost importance. After all, crypto assets are digital and therefore vulnerable to hacking. That’s why it’s so important to take measures to protect your crypto holdings.
On January 17, this year, Crypto.com announced that a recent theft resulted in more than $15 million in ETH, $19 million in BTC, and $66,200 in other cryptocurrencies. This cyberattack affected just 483 of their subscribers but resulted in total losses of more than $34 million. The business determined that the hacker could circumvent the needed 2FA tokens and authorize crypto transactions through the accounts of users. While two-factor authentication is useful, multi-factor authentication provides extra protection for securing users’ digital assets and personal information.
Unfortunately, no matter how much security you have in place, there’s always a risk of being hacked. Just look at the history of cryptocurrency: there have been massive hacks over the years, resulting in the loss of billions of dollars worth of crypto.
In this article, we’ll take a look at the five biggest crypto hacks in history. We’ll also discuss what you can do to avoid becoming a victim of a hack. So without further ado, let’s get started.
The cryptocurrency world has seen its fair share of hacks and scams over the years. From the early days of Bitcoin to the more recent Ethereum Parity hack, no coin is safe from the grasp of malicious actors. In this article, we will take a look at the five biggest cryptocurrency hacks in history and what we can learn from them.
Bitcoin Gold Decentralized Exchange hack
On May 18, hackers stole over $18 million worth of Bitcoin Gold from a decentralized exchange. This is a major blow to the Bitcoin Gold community, which has been working hard to build a decentralized alternative to the current financial system.
The hack is a reminder of how vulnerable decentralized exchanges are to attacks. Even though decentralized exchanges offer many advantages over centralized exchanges, they are still not immune to security breaches. We can only hope that the Bitcoin Gold community can recover from this attack and continue to build a better future for all of us.
The DAO hack
The DAO hack was a devastating event for the Ethereum community. It was a tragic reminder of the power of code and the potential for disaster that exists when code is not carefully audited. The DAO hack also demonstrated the importance of decentralization and the fragility of humans when it comes to managing complex systems.
Mt.Gox Bitcoin hack
The Mt. Gox hack was the first major cryptocurrency hack and it happened in 2014. Mt. Gox was a Bitcoin exchange that was based in Japan. At the time, it was the largest Bitcoin exchange in the world. However, in February 2014, Mt. Gox suddenly stopped allowing withdrawals. It later emerged that 750,000 Bitcoins had been stolen from the exchange. Mt. Gox filed for bankruptcy and many people lost a lot of money.
BitMart
There isn’t much to write about, the self-proclaimed “Most Trusted Crypto Trading Platform”, has lost 100M USD worth of several ERC20 tokens, from one of its Ethereum hot wallets and 96M USD a BSC wallet.
Nothing else was disclosed in the post-mortem of the accident, indicating whether it was a security breach, poor DevOps, or an internal employee. Learn more about BitMart Hack…
Bitstamp hack
In January 2015, Bitstamp was hacked and 19,000 bitcoins were stolen. This was a devastating blow to the company, and it took months for them to recover. The hack was a reminder of the risks that come with online businesses, and it showed that even the most well-protected businesses are vulnerable to attack.
Despite the setback, Bitstamp has continued to grow and is now one of the largest cryptocurrency exchanges in the world. The company has also implemented new security measures to help protect against future attacks.
How can you protect your cryptocurrency from hackers?
Make use of Cold Wallets. Cold wallets use a real hardware device similar to a USB drive to safely store cryptocurrencies offline. These wallets are linked to a private, encrypted key, which is a piece of code that allows the user to decode the wallet and access the digital assets held within it.
>MORE: Cryptocurrency wallets: How to pick the best one for you!
Protect Your Gadgets. Users should safeguard their own devices as a security best practice. This process entails a number of procedures, including the installation of system updates as well as effective anti-virus and firewall security.
Keep an eye out for phishing scams. As previously stated, phishing schemes are a prevalent means of obtaining bitcoin from individuals. Users should use caution when opening unknown emails and adverts that appear suspicious or unexpected. Hackers are growing more adept as they do research and plan their attacks. For example, they may do research on the staff and executives of a blockchain exchange, obtaining their email addresses and job descriptions.
Key Lessons
- While the cryptocurrency market evolves at an incredible rate, so are the hacking tactics employed by hackers to steal digital currency.
- To protect their bitcoin assets, prudent investors should take steps.
- A cryptocurrency wallet is one of the finest security methods; “cold storage” wallets look like USB sticks and are not linked to the internet to protect their bitcoin contents from attacks.
- Experts advise against storing any bitcoin assets on digital currency exchanges.
Conclusion
While it would be ideal if there were no data breaches, the truth is that they will continue as long as there is sensitive data and assets worth stealing or exposing. We hope you found this week’s post on typical methods hackers steal cryptocurrency, tips to keep your digital assets safe, and an example to demonstrate the need of adopting holistic security useful. It is not sufficient to deploy a single security solution; your consumers want 24-hour data protection and security. It is critical to safeguard your clients’ data from theft in addition to employing cold wallets, keeping secure equipment, and generating strong passwords.
One option is a shareable private key, which substitutes the original transaction signing and approval processes with a signature threshold produced by the cloud. This data may subsequently be utilized to store, administer, and handle cryptocurrency through blockchain services like Coinbase or in any other given circumstance. Threshold signatures, which are powered by cryptography, are an effective method of securing cryptocurrency. Contact Tookey now to learn more about enterprise access and asset management technologies and how we can assist fulfill your company needs, maintaining important business processes, and keeping your digital assets safe.
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