Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized and are not subject to government or financial institution control, making them an attractive target for hackers. This blog post will discuss some of the worst cryptocurrency hacking incidents in history.
Bitfinex (2018)
In January 2018, the popular cryptocurrency exchange Bitfinex got hacked, and 119,756 bitcoins got stolen, amounting to a loss of $72 million at the time.
BitCurex (2016)
In August 2016, Bitcurex, a Polish bitcoin exchange, was hacked and lost 19,000 bitcoins, amounting to a loss of $16 million at the time.
Bithumb (2017)
In September 2017, Bithumb, one of South Korea’s largest cryptocurrency exchanges, was hacked and lost 30,000 bitcoins, amounting to $30 million.
Mt. Gox (2011/2014)
The first major cryptocurrency hacking incident occurred in February 2011, when Mt. Gox was hacked and lost about $500,000 worth of bitcoins. At the time, this amounted to about 25% of all the bitcoins in existence. In February 2014, Mt. Gox, then the largest bitcoin exchange globally, was hacked, and 850,000 bitcoins got stolen, amounting to a whopping $473 million in losses.
KuCoin (2020)
In January 2020, KuCoin, a Singapore-based cryptocurrency exchange, got hacked and lost about $13 million worth of cryptocurrencies. It included tokens from projects such as Ontology, BitShares, NEO, GAS, and others. While this amount may seem small compared to some of the other hacking incidents on this list, it is still a significant loss.
Upbit (2019)
Upbit, a South Korean cryptocurrency exchange, faced a similar fate in May 2019 and lost about $50 million worth of cryptocurrencies. It included tokens from projects such as Bitcoin, Ethereum, EOS, TRON, and others. This incident was the largest hack to ever occur in South Korea.
Coinrail (2018)
In June 2018, Coinrail, a small cryptocurrency exchange based in South Korea, was hacked and lost about $40 million worth of cryptocurrencies. It included tokens from projects such as Pundi X, ICONOMI, NPER, Aston Martin Red Bull Racing Team Tokenized Asset Offering (TAT), and others.
Binance (2019)
In May 2019 Binance, one of the world’s largest cryptocurrency exchanges was hacked and lost about $40 million worth of cryptocurrencies. It included tokens from projects such as Bitcoin, Ethereum, EOS, TRON, and others. While this amount may seem small compared to some of the other hacking incidents on this list, it is still a significant loss.
NiceHash (2018)
In December 2018, NiceHash, a Slovenian-based cryptocurrency mining company, was hacked and lost about $70 million worth of cryptocurrencies. It included bitcoins and altcoins such as Bitcoin Cash, Litecoin, Dash, etc. It was the largest hack to ever occur in Slovenia.
These are just a few of the worst cryptocurrency hacking incidents in history. However, as blockchain technology evolves and becomes more popular, we can only expect to see more of these attacks. As a result, investors and cryptocurrency users need to be aware of the risks and take appropriate precautions.
