What may be the biggest crypto heists in history? Well, let’s educate ourselves!
Following the Global Financial Crisis of 2008–2009, Bitcoin (BTC) was created in an effort to shield the globe from additional financial catastrophes. However, cryptocurrencies also do not offer sufficient security to the users’ assets, as shown by numerous cryptocurrency frauds since their debut on the globe.
Hackers find it simpler to steal virtual currency than real money because most financial transactions take place digitally. Additionally, massive amounts of cryptocurrency can be transferred anonymously, resulting in significant heists in the crypto business.
In this article, let’s examine the greatest crypto thefts ever. The post will also explain why cryptocurrency exchanges continue to be breached, why cryptocurrency heists are becoming more sophisticated, and what we can do to defend ourselves from such biggest crypto heists.
Well, if you think Bill Murray’s NFT Scam will be on the list, get prepared cos’ it goes even worse. And if you’re lost, check out this post to know more about the Bill Murray NFT Auction Scam.
What Are The Biggest Cryptocurrency Heists In History?
1. MT Gox
Over 850k Bitcoin were stolen from Mt. Gox between 2011 and 2014, making it the biggest cryptocurrency theft in history. According to Mt. Gox, a drawback that oversaw the loss was courted by the transaction malleability bug, which is a basic drawback in Bitcoin. The practice of changing a digital autograph that produces a transaction’s distinct identifier is known as “transaction malleability.”
MtGox’s private keys were found to have been stolen in September 2011, and the company failed to use any auditing methods to identify the incident. Additionally, because MtGox often reused Bitcoin addresses, the stolen set of keys was used to steal fresh stakes, and by mid-2013, the exchange had lost nearly 630k BTC. Surprisingly, WizSec (a team of Bitcoin security experts) affirms that blockchain transactions can provide evidence of continuing theft to back up this claim.
As demonstrated by Mt. Gox, many businesses utilize cold and hot wallets to reduce substantial losses. All coins are sent to the exchange’s cold wallet, where they are manually moved as needed to the hot wallet. The exchange can choose how many coins it is keen to risk by deciding how much money can be stolen from the hot wallet in the event that an exchange’s server is jeopardized.
Bitcoin exchanges and community whales used Linode, a web hosting company, to stock their hot wallets. In June 2011, Linode was hacked, and the virtual services that housed the hot wallets were the victims.
Sadly, this steered to the theft of at least 46k BTC; still, the exact amount is yet unknown. Among the victims were Bitcoinia, which lost roughly 43k BTC, Bitcoin.cx, which lost 3k BTC; and Gavin Andresen (a Bitcoin developer), who also lost 5k BTC. Imagine how affluent they would have been today!
Even though these thefts are less serious, high-impact Bitcoin break-ins have remained. In May 2012, 24k BTC was adopted from BitFloor. In the course of the fraud, an attacker amassed access to a vulnerable (i.e., unencrypted) backup of wallet keys and took cryptocurrency worth about $250,000 in total. Roman Shtylman, the man behind BitFloor, made the ruling to shut down the firm as a result.
Multisig (the requirement of several keys to allow a BTC transaction) usage is not a panacea in and of itself, as demonstrated by yet another sizable heist at Bitfinex, which saw 119,756 BTC stolen.
In order to serve as a third-party escrow for customer withdrawals, Bitfinex exchange had partnered with BitGo. Additionally, it occurs that Bitfinex agreed against using cold wallets in order to qualify for a legal exemption from the Commodities and Exchange Act. Although the concept of using threshold signatures is intriguing, it does not ensure that the power to allow transactions is distributed.
Coincheck, Bimart, KuCoin, Beanstalk, PancakeBunny, Wormhole, Poly Network, Cream Finance, BadgerDAO, Bitgrail, Ronin network, and Harmony Bridge crimes are among the greatest cryptocurrency heists to date. But I am sure you wouldn’t want to fall victim to such a terrible scam, I mean, they’ve stolen my 500 Tron(TRX) before, and it hurts. So, how do we avoid crypto scams? Let’s dive in!
How To Avoid Cryptocurrency Scam
Knowing how to secure your crypto wallet and conducting your own research on the projects available is one of the greatest ways to safeguard your cryptocurrency investment.
All of the security precautions taken by Bitcoin exchanges have been preventative in nature. As was said above, proactive security measures have lessened the effects of heists, but tragically, they cannot completely prevent theft. Fundamentally, once the relevant private keys have been taken, there is little exchange can do to prevent a heist due to the irreversible nature of the blockchain.
Any statements made concerning investing in cryptocurrencies should always be verified, especially if they seem too good to be true. Furthermore, you shouldn’t believe anyone who personally approaches you about making an investment in Bitcoin or another cryptocurrency.
Furthermore, make sure that your cryptocurrency exchange and wallet both support two-factor authentication. You should also never divulge your cold wallet’s private key or seed phrase to anyone.
Once you are confident in the credibility of the crypto project, only move further after checking the URLs of websites two or three times. Any offer that demands payment upfront, regardless of the sum, should also be declined, especially if it requires payment in cryptocurrency.
Altogether, you do not have to worry. With Breet, your assets are safe, and there’s no fear of falling victim because transactions are made to be solely and not with a peer. Now you see why you gats BREET!