From the day the cryptocurrency industry took off, we knew that at some point, there would be a series of hackings when the time comes. And the time is here, we have started to experience different hack situations, especially with exchangers.
This hack situation is not the one where you start looking for some DIY on how to find lost bitcoins. But it is more advanced and carried out by professional black-hat hackers. While cryptocurrencies run on blockchain technology are considered very secure, they can also be very vulnerable in many ways. This, hence, makes them the primary target for these hackers.
The most significant hacks happened with Binance and Ethereum: an independently developed cryptocurrency that also works together. Losses gotten from these were recorded at $474m (at all-time high). According to CipherTrace, losses experienced in the crypto industry due to different hacks decreased to $681m; this is far lower than the $1.9bn and $4.5bn recorded all through 2020 and 2019, respectively.
Another known hack in the industry happened in Bithumb exchange: a South Korean cryptocurrency firm. Unfortunately for the hackers, they were nabbed. The report showed that they were captured with $30 million worth of digital tokens. This was said to be the biggest hack of 2019.
According to industry analysts, if a hack can happen to a big company like Bithumb: South Korea’s largest cryptocurrency exchange company and major global player, no company is an exemption. Not even the best lessons on finding lost bitcoins can serve in the situation.
In this article, we will be listing some major hacks that have occurred in recent times and how that has affected the security apparatus of the cryptocurrency industry.
4 Known Crypto Hack Incidents
#1: Bithumb
The famous Bithumb happened around June 2019, recording over $30 million worth of tokens was lost. During that time, the exchange had assured their clients that there is no cause for alarm; their wallets won’t be affected. Therefore, no need for them to look for how to find lost bitcoins or something.
Before the attack, the company was the 6th largest global exchanger on the trade volume but only slipped to the 10th position after the hack. The hackers targeted the company’s hot wallet, which generally is less secure than the cold wallet system.
#2: Coinrail
The company lost $37.2 Million after the attack. Coinrail was Bithumb’s top rival and was attacked a week before Bithumb. The company lost over $37.2 million worth of crypto; most of the cryptocurrency stolen was Aston and Pundi X coins.
Bitcoin had lost about 11% of its actual value as a result of the hack. One can’t say how it affected Coinrail as a company because they were utterly discrete about the whole matter. But all we know is that the company was completely shut down at the moment to augment its cybersecurity apparatus further.
#3: BitGrail
With a $195 Million in loss, this Italian-based cryptocurrency exchange company was hacked in February 2018. After the hack, a total of $195 million worth of token Nano was lost to the attack. Not much was disclosed about this event, but according to news sources, there seems to be confusion because customers were confused on who to blame: whether it is the BitGrail founder Francesco Firano, the hackers, or the team of nano developers.
Also, according to some leaked information, the management intensifies their security by reshuffling the cybersecurity department while introducing newer security software tools as a replacement.
#4: Coincheck
Coincheck was reported to have lost $534 Million in that 2018 attack. Five hundred twenty-three million units of NEM, which was worth over $534 million, were said to be lost in the process.
Also, the hot wallet was the prime target. News agencies once reported that some of their clients went on looking to find lost bitcoins, even when it was not affected. Coincheck survived the attack, but a Japanese financial service firm, Monex Group, bought over the company in April.
The report said there was an overhaul in the Coincheck cybersecurity apparatus as a precaution for future occurrence.
Final Note
We would also like to comment on the question “how to find lost bitcoins?” But before then, we must state that even as the cryptocurrency security space keeps getting more sophisticated daily, making it almost impenetrable for hackers, that has not in any way reduced the number of hack attempts in that industry.
Cryptocurrency hackers are unpredictable; they go for those companies that everyone’s list expected. We must add that there is no DIY on how to find lost bitcoins. It is performed by wallet recovery service companies that have the tools and experienced workforce to perform this task.
