Top Crypto Exchange Hacks All Traders Should Know

 

 

 

Introduction:

Cryptocurrency exchanges have been a prime target for hackers due to the high value of digital assets stored on them. Millions of dollars' worth of cryptocurrencies havebeen lost as a consequence of hacking attacks on many cryptocurrency exchanges throughout the years. In this article, we will explore some of the top crypto exchange hacks that all traders should know.

2: Mt. Gox Hack:

The Mt. Gox hack remains the largest cryptocurrency exchange hack in history, with hackers stealing 850,000 bitcoins worth over $450 million at the time. The hack occurred in 2014 and led to the bankruptcy of the exchange. The hack was due to a vulnerability in the exchange's code, which allowed hackers to steal the funds.

3: Bitfinex Hack:

In 2016, Bitfinex, one of the largest cryptocurrency exchanges at the time, was hacked, resulting in the loss of 120,000 bitcoins worth over $72 million. The hack was due to a vulnerability in the exchange's multi-signature wallet system. The exchange later issued a token to its users, which was redeemed at a later date.

4: Binance Hack:

In 2019, Binance, one of the largest cryptocurrency exchanges in the world, was hacked, resulting in the loss of 7,000 bitcoins worth over $40 million at the time. The exchange's hot wallet mechanism had a flaw that led to the breach. The exchange later reimbursed the affected users from its Secure Asset Fund for Users (SAFU) fund.

5: Coincheck Hack:

In 2018, Coincheck, a Japanese cryptocurrency exchange, was hacked, resulting in the loss of 500 million NEM tokens worth over $530 million at the time. A security flaw in the exchange's system allowed for the breach. The exchange later reimbursed the affected users from its own funds.

6: BitGrail Hack:

In 2018, BitGrail, an Italian cryptocurrency exchange, was hacked, resulting in the loss of 17 million Nano tokens worth over $170 million at the time. The hack was due to a vulnerability in the exchange's code, which allowed hackers to steal the funds. The exchange later filed for bankruptcy.

7: Zaif Hack:

In 2018, Zaif, a Japanese cryptocurrency exchange, was hacked, resulting in the loss of 6.7billion yen worth of cryptocurrencies, including bitcoin and bitcoin cash. The exchange's hot wallet mechanism had a flaw that led to the breach. The exchange later sold a majority stake to another company to cover the losses.

8: Cryptopia Hack:

In 2019, Cryptopia, a New Zealand-based cryptocurrency exchange, was hacked, resulting in the loss of over $16 million worth of cryptocurrencies. A security flaw in the exchange's system allowed for the breach. The exchange later filed for bankruptcy.

9: Upbit Hack:

In 2019, Upbit, a South Korean cryptocurrency exchange, was hacked, resulting in the loss of 342,000 ether worth over $50 million at the time. A flaw in the hot wallet technology of the exchange led to the breach. The exchange later reimbursed the affected users from its own funds.

10: KuCoin Hack:

In 2020, KuCoin, a Singapore-based cryptocurrency exchange, was hacked, resulting in the loss of over $200 million worth of cryptocurrencies. A flaw in the hot wallet technology of the exchange led to the breach. The exchange later reimbursed the affected users from its own funds.

11: Liquid Global Hack:

In 2021, Liquid Global, a Japanese cryptocurrency exchange, was hacked, resulting in the loss of over $80 million worth of cryptocurrencies. A flaw in the hot wallet technology of the exchange led to the breach. The exchange later reimbursed the affected users from its own funds.

Conclusion:

Crypto exchange hacks have become a common occurrence in the cryptocurrency industry. Traders should be aware of the risks involved in trading on exchanges and take necessary precautions to protect their funds. By keeping up to date with the latest security measures implemented by exchanges, using cold storage wallets, and spreading their funds across multiple exchanges, traders can minimize the risk of losing their cryptocurrencies in a hack.