Cryptocurrencies have become a hot topic in recent times, with their skyrocketing value and numerous stories of early investors striking it rich. However, the flip side of this digital currency is its association with cybercrime. The lack of regulatory oversight and virtual nature of cryptocurrencies make them an attractive option for money laundering, particularly for ransomware operators.
This has put organizations involved in legitimate cryptocurrency transactions at a heightened risk of cyber attacks. Hackers see them as high-value targets, knowing that a successful exploit could lead to a massive financial gain. In light of recent incidents, it is crucial for companies offering cryptocurrency services to prioritize cybersecurity measures to safeguard their assets and customers.
Here is a compilation of some of the biggest cryptocurrency heists that have occurred to date:
1) Poly Network (August 2021) – $610m
In a record-breaking heist, a hacker exploited a vulnerability in blockchain connection platform Poly Network, stealing $610 million worth of cryptocurrency. Surprisingly, the hacker, known as ‘Mr. White Hat,’ returned the funds, claiming ethical motivations.
2) CoinCheck (January 2018) – $547m
Japanese cryptocurrency exchange Coincheck fell victim to a cyber attack, resulting in the theft of $547 million worth of NEM tokens. The company vowed to return 90% of the stolen tokens to affected customers, totaling $425 million.
3) Mt. Gox (March 2014) – $460m
In a devastating blow to the bitcoin exchange Mt. Gox, attackers made off with $460 million worth of cryptocurrency in 2014. This incident, occurring when the value of bitcoin was significantly lower, raised concerns about the future of cryptocurrencies.
4) KuCoin (September 2020) – $281m
A cyber attack on crypto exchange KuCoin led to the theft of $281 million, but the company managed to recover $204 million within a week. A UN report later attributed the incident to North Korean threat actors.
5) Bitgrail (February 2018) – $170m
Italian exchange Bitgrail suffered a $170 million cryptoheist involving 17 million Nano tokens. A court ruling held Bitgrail’s owner responsible for the loss and mandated the return of assets to affected parties.
6) Liquid (August 2021) – $97m
Japanese exchange Liquid lost an estimated $97 million in cryptocurrencies after being targeted by threat actors.
7) Bitfinex (August 2016) – $72m
Hong Kong-based exchange Bitfinex lost $72 million in a security breach, with most of the stolen bitcoins still not recovered or laundered.
8) NiceHash (December 2017) – $64m
Cryptomining firm NiceHash fell victim to a payment system compromise, resulting in the theft of $64 million. The company fully reimbursed affected users three years later.
9) Zaif (September 2018) – $60m
Japanese exchange Zaif lost $60 million in a cyber attack, with $40 million belonging to its customers. The company promptly reimbursed affected users.
10) Upbit (November 2019) – $52m
South Korean exchange Upbit faced a major online heist, leading to a temporary suspension of account transactions. Investigations revealed that the stolen funds were laundered using sophisticated techniques.
These incidents underscore the importance of robust cybersecurity measures in the cryptocurrency industry. As the value and popularity of cryptocurrencies continue to rise, organizations must remain vigilant against cyber threats to protect their assets and maintain the trust of their customers.