Cryptocurrency, a digital asset designed to work as a medium of exchange, has seen phenomenal growth over the past decade. However, with this growth has come a wave of significant security breaches and thefts. Here are some of the most notorious cases of crypto theft in history.
1. Ronin Network (Axie Infinity) - $620 Million
In March 2022, the Ronin Network, which supports the popular blockchain game Axie Infinity, experienced the largest crypto theft to date. Hackers managed to steal 173,600 Ethereum (ETH) and 25.5 million USDC, worth approximately $620 million at the time. The attack was attributed to North Korea's Lazarus Group, which exploited vulnerabilities in the network's validator nodes (Comparitech) (Kaspersky).
2. Poly Network - $610 Million
In August 2021, Poly Network suffered a massive breach where a hacker exploited a vulnerability to steal over $610 million worth of assets. In a surprising turn of events, the hacker, later dubbed "Mr. White Hat," returned nearly all the stolen funds after engaging in discussions with Poly Network, highlighting the peculiar dynamics within the crypto space (Techopedia) (Kaspersky).
3. Binance (BNB Chain) - $570 Million
In October 2022, Binance’s BNB Chain was hacked, resulting in the theft of $570 million worth of BNB tokens. The exploit occurred on the BSC Token Hub, a cross-chain bridge, allowing hackers to mint new BNB tokens. Quick response from Binance's team managed to freeze a significant portion of the stolen funds, reducing the final loss to around $110 million (Comparitech) (Techopedia).
4. Coincheck - $547 Million
One of the earlier large-scale crypto heists happened in January 2018 when Japan-based Coincheck lost over $540 million in NEM tokens. The attack was facilitated by storing the assets in hot wallets, which are more vulnerable to hacks. This incident led to significant changes in Japan's regulatory approach towards cryptocurrency exchanges (Comparitech) (Tech Monitor).
5. Mt. Gox - $470 Million
The Mt. Gox hack is perhaps the most infamous in crypto history. Between 2011 and 2014, the Tokyo-based exchange lost approximately 850,000 bitcoins, valued at $470 million at the time. The prolonged breach highlighted severe security lapses and led to the exchange's bankruptcy. Today, the stolen bitcoins would be worth billions, making this one of the most impactful thefts ever (Comparitech) (Kaspersky).
6. FTX - $415 Million
Following its declaration of bankruptcy, the crypto exchange FTX was hacked, resulting in a loss of $415 million. This attack added to the woes of an already beleaguered company and underscored the vulnerabilities that exchanges face during periods of instability (Techopedia).
7. Wormhole - $326 Million
In February 2022, the Wormhole network, a bridge between Solana and other decentralized finance (DeFi) networks, was exploited, leading to a theft of $326 million worth of wrapped Ethereum (wETH). This incident highlighted the risks associated with cross-chain protocols (Comparitech).
8. KuCoin - $281 Million
In September 2020, Singapore-based KuCoin suffered a hack that resulted in the loss of $281 million. The hackers managed to gain access to the exchange's hot wallets. However, due to effective tracing and collaboration with other exchanges, a significant portion of the stolen assets was recovered (Tech Monitor).
These cases demonstrate the significant risks and challenges associated with cryptocurrency. Despite the potential for high returns, the security of crypto assets remains a critical issue. As the industry evolves, it must continually improve its defenses against increasingly sophisticated cyber threats. The future of cryptocurrency will depend heavily on its ability to protect investors and maintain trust in the digital financial ecosystem.
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