$23 Million Worth of Crypto Compromised as Bitrue Exchange Gets Hacked

The Korean cryptocurrency platform Yapizon was firsthacked for 3,816 BTC or roughly $5.3 million USD worth of bitcoins on Saturday, April 22 in 2019, which equated to approximately 37% of holdings at the time. The company made the decision https://coinbreakingnews.info/ to spread the losses over all customers on the exchange to reduce the burden on the affected users. The popular crypto exchange in the UKbased in London was hacked for 6% of the total crypto assets held on EXMO on December 21, 2020.

  • If the developers don’t catch these flaws in time, it can lead to losses worth millions of dollars.
  • Since such a scenario would also require huge investments into mining equipment, such a heist is also highly improbable.
  • The recent hack on Bitrue is yet another example of the ongoing security challenges faced by crypto and DeFi projects.

Like most malicious attacks on the computing public, the motive is profit, but unlike other threats, it is designed to remain completely hidden from the user. Cryptojacking malware can lead to slowdowns and crashes due to straining of computational resources. Most exit scams as well as many ponzi schemes involving cryptocurrencies are performed through Initial Coin Offerings . As an example, according to a report by Satis Group almost 80% of all projects launched through an ICO in 2017 were scams.

Centralized crypto exchanges

Created a coalition with the instant exchange service Changelly, through which the hackers tried to withdraw funds. These funds were later compensated with BFX tokens, which could be converted into U.S. dollars at an exchange rate set by Bitfinex or into shares of iFinex Inc., the company operating Bitfinex. Announced finding a wallet holding a balance of approximately 200,000 BTC. However, the number of Bitcoins stolen was updated and estimated to be approximately 650,000 BTC. Hackers prefer to use fraudulent exchanges and exchanges without verification requirements. This is the fastest and easiest way to cash out stolen money as it avoids KYC procedures and withdrawal limits.

The latter have become a global concern — for instance, envoys from South Korea, the US and Japan on Friday agreed to redouble efforts to block North Korea’s nuclear and missile financing through crypto theft. “On February 18, the day of the Chinese Lunar New Year’s Eve, a message was posted on their website stating that their wallet servers were hacked and that they had lost over 3000 BTC.” However, many are questioning whether the company was hacked or if the loss was something planned by internal representatives.. Scammers using SIM swap fraud take advantage of 2-factor authentication , where banks and other service providers send a text message to their customer’s phone to confirm activity on an account. They get a carrier to activate a SIM card on a new device for the customer’s number, which lets them go through all the checks successfully.

Most of 2021’s crypto hacks were due to bugs found in platforms’ codes. In February 2022, hackers exploited a Wormhole security vulnerability after an update to the software. The hacker found a code exploit and managed to mint 120,000 wETH (worth $326 million) without first depositing any Ether funds as collateral. The hacker then exchanged the wETH for $250 million in Ethereum and sent it to their account. In a nutshell, the group hacked users’ private keys and made false withdrawals.

They were able to manipulate the prices of one money lego with the input of their flash loan to drain funds from another money lego. In a surprising turn of events, the hackers returned all stolen funds. The funds were returned after the hacker accidentally leaked an IP address during the hack. Badger is a decentralized autonomous organization that allows users to put up Bitcoin as collateral across a variety of DeFi platforms. It’s built on the Polygon network and has blockchain games, a decentralized exchange, and NFT marketplace.

Coin exchange hacked

The manner in which the attack was executed was not explicitly stated by Bitrue. The hackers stole around $100 million worth of crypto, Zhao said in his tweet. BNB Chain later said in a blog post that a total of 2 million of the BNB cryptocurrency – worth around $570 million – was withdrawn by the hacker. The Wormhole protocol allows for the transfer of funds between multiple chains, including Ethereum . The hacker took advantage of weaknesses in the protocol’s validation system to fraudulently generate a large quantity of wrapped Ethereum , a token with a value tied to the Ethereum coin. They then used the Wormhole to convert the WETH into ETH, making off with cryptocurrency valuing around $325 million.

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FTX filed for bankruptcy in the U.S. on Nov. 11, 2022, seeking court protection as it looks for a way to return money to users. Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Bankruptcy Court in the Southern District of New York to issue an order preserving the SQL database held exclusively on Arizona servers. This data contains vital information that can reconcile individual holdings with the currencies held by Cryptopia. One of the most important safety rules for long-term investors is to keep cryptocurrencies offline if you are not actively trading or spending them.

Coin exchange hacked

In total, they received over $23 million worth of assets, but gradually they dumped all the QNT tokens in the open market. “Bitfloor, has just announced that it has been hacked, and the service has taken a loss of 24,000 BTC, worth about $250,000 at the time of the theft.” In total, hackers drained 2 million BNB tokens — about $570 million at current prices — from the network, Binance’s BNB Chain said in ablog poston Friday. Binance said a cross-chain bridge linking with its BNB Chain was targeted, enabling hackers to move BNB tokens off the network. Tom Robinson, co-founder of Elliptic, told CNBC that the hackers were converting the ether into a crypto product called RenBTC which is then being converted into bitcoin via a bridge.

In April 2020, lending platform Lendf.me was drained of nearly 99.5% of its funds. Lendf.me is on the Ethereum blockchain and the website was taken down immediately to prevent further hacks. Vulcan Forged refunded users just a day after the platform was hacked. Refunds came from the Vulcan coin exchange hacked Forged treasury, a fund reserved for crises. The Mirror Protocol bug allowed the hacker to access other users’ collateral and withdraw it to their own account. Mirror Protocol has not issued an official statement but did fix the bug shortly before community members discovered the hack.

To date, the stolen funds have not been cashed out using another exchange or recovered. According to a Bitfinex blog post, a reward of 5% of the total property recovered will be given. Bitfinex is a cryptocurrency exchange that is currently ranked #5 in terms of reported trading volume, liquidity and traffic.

Fraud factories

BTER was compromised several months before this incident in 2015 when a hacker penetrated the exchange’s servers. NXT tokens were transferred off the exchange and valued at $1.65 million at the time. A spokesperson for BTER admitted this incident was their own fault and BTER has since been taken down. The theft continued over the next few days and additional Bitcoin and Ethereum were removed. The hacker even sold Shapeshift key security data and forced the exchange to suspend its service to improve its security infrastructure. A well-regarded and best-rated P2P exchange for transacting crypto suffered a security breach that lasted only a few hours on January 26, 2019.

“The official statement of the exchange disclosed that 450,000 email addresses and passwords were leaked in a massive global hacking attack involving 24 websites and some 747 million records.” In his complaint, Ferguson said he immediately contacted the exchange to report the hacking, but alleges its procedures fall down by failing to be alert to obviously fraudulent and unauthorized transactions. “Coinbase’s email disclaimed any responsibility for the hacking of its customers’ accounts,” the filing read. A Binance spokesperson told Bloomberg that at least $7 million of stolen funds have already been frozen.

World’s largest crypto exchange hacked with possible losses of $500m

Since Bitcoin’s network is so large, it would require billions of dollars in hardware and electricity to maintain a sustained 51% attack. Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers. Reports on the intersection of finance and technology, including cryptocurrencies, NFTs, virtual worlds and the money driving “Web3”. BNB Chain was “able to stop the incident from spreading” by contacting the blockchain’s “validators,” – entities or individuals who verify blockchain transactions, it said in its blog post.

Hackers Steal $100 Million by Exploiting Crypto’s Weak Link

While cryptocurrency is gaining popularity as an investment vessel, recent reports of losses prove that Bitcoin, Ethereum, and its other equivalents are still volatile. Two recent incidents of cryptocurrency theft has affected the price of Bitcoin, resulting in losses for initial coin offering investors. On July 15, 2020, Twitter accounts of prominent personalities and firms, including Joe Biden, Barack Obama, Bill Gates, Elon Musk, Jeff Bezos, Apple, Kanye West, Michael Bloomberg and Uber were hacked. Twitter confirmed that it was a coordinated social engineering attack on their own employees. Hackers posted the message to transfer the Bitcoin in a Bitcoin wallet, which would double the amount. ] to increase to more than $100,000 as the message spread among the Twitter followers.

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