Most Significant Crypto Hacks for 2021 & 2022
Most Significant Crypto Hacks that Occurred in 2021
The Coincheck hack - $534 million
In January 2021, Japanese cryptocurrency exchange Coincheck was hacked, resulting in the loss of an estimated $534 million in various cryptocurrencies. The attack was carried out by a group of hackers who exploited a vulnerability in the exchange's systems to gain access to customer accounts.
The KuCoin hack - $281 million
In September 2021, Singapore-based cryptocurrency exchange KuCoin was hacked, resulting in the loss of an estimated $281 million in various cryptocurrencies. The attack was carried out by a group of sophisticated hackers who used a variety of techniques to gain access to the exchange's systems.
The Bitfinex hack - $65 million
In August 2021, Hong Kong-based cryptocurrency exchange Bitfinex was hacked, resulting in the loss of an estimated $65 million in bitcoin. The attack was carried out by a group of hackers who exploited a vulnerability in the exchange's systems to gain access to customer accounts.
The Binance hack - $40 million
In May 2021, Hong Kong-based cryptocurrency exchange Binance was hacked, resulting in the loss of an estimated $40 million in bitcoin. The attack was carried out by a group of hackers who exploited a vulnerability in the exchange's systems to gain access to customer accounts.
The Cryptopia hack - $16 million
In January 2021, New Zealand-based cryptocurrency exchange Cryptopia was hacked, resulting in the loss of an estimated $16 million in various cryptocurrencies. The attack was carried out using a novel technique called a "dictionary attack," in which hackers attempt to guess the passwords of accounts by using common words and phrases.
Most Significant Crypto Hacks that Occurred in 2022
Bitfinex - $1.3 billion
In November 2022, the Hong Kong-based cryptocurrency exchange Bitfinex was hacked for an estimated $1.3 billion worth of cryptocurrency. The hackers used a variety of techniques, including phishing and viruses, to gain access to user accounts and steal the funds.
Axie Infinity’s Ronin Network — $625 million
A hacker stole over $625 million in USDC and Ethereum from the Ronin Network, a gaming-focused blockchain network. Sky Mavis, the publisher of Axie Infinity, has vowed to reimburse players who lost crypto in the attack. CoinDesk reporter Andrew Thurman had a focus on DeFi related news.
Coincheck Hack: In October 2022, the Japanese cryptocurrency exchange Coincheck was hacked for an estimated $530 million worth of cryptocurrency. The hackers used a variety of techniques, including phishing and viruses, to gain access to user accounts and steal the funds.
Wormhole Bridge — $320 million
In February, cybercriminals attacked Wormhole, one of the largest inter-blockchain links between Solana and other blockchains. The malicious actors used a flaw in Wormhole's authentication process, allowing them to get away with falsely generated wrapped ether. The hackers then deployed the chain to change the wrapped ether into ether. Later, Jump Crypto, the parent company of Wormhole, furnished 120,000 ether to compensate for the bridge's losses.
KuCoin Hack: $280 million
KuCoin Hack: In September 2022, the Singapore-based cryptocurrency exchange KuCoin was hacked for an estimated $280 million worth of cryptocurrency. The hackers used a variety of techniques, including phishing and viruses, to gain access to user accounts and steal the funds.
Nomad Bridge — $190 million
In August, DeFi bridge Nomad experienced a spectacular disaster that amounted to $190 million gone in a mere 960 transactions, with 1,175 individual withdrawals. Residents were competent of manipulating a bug in the protocol which facilitated them to take out more funds than they had deposited. It is assumed that once the info about the glitch was propagated, people hastened to exploit it for themselves, leading to a chaotic situation consisting of onlookers competing to submit unlawful transactions, rapidly draining the token bridge of all user funds held inside its joined smart contract. White hat hackers later refunded at least $32 million to a revival wallet address, Nomad said. This wallet was built up in relation with custodian bank, Anchorage Digital.
Beanstalk Farms — $182 million
In April, the Ethereum-based stablecoin system Beanstalk was the victim of a security attack that caused a loss of $182 million. An unknown offender utilized rapid borrowing to acquire a controlling stake of STALK, the platform's governing token. The thief then put forward a tremendous shift of resources and ratified it with their own governing voice. Four months after the violation, the algorithmic stablecoin structure resumed operations. Beanstalk Farms declared they "re-activated" their services on the anniversary of the original August 2021 launch.
Wintermute — $160 million
Last month, Liquidity supplier Wintermute, which furnishes liquidity across the majority of CeFi and DeFi exchanges, announced that it had suffered a safety violation resulting in a loss of $160 million. Wintermute is one of the greatest crypto liquidity suppliers, executing market making services for exchanges including Binance and Coinbase. Rumors suggest that the infiltration was an internal duty, but to date there has been no confirmation as to the source or culprit.
Binance Hack - $40 million
In May 2022, the world's largest cryptocurrency exchange, Binance, was hacked for 7,000 Bitcoin (BTC) worth $40 million. The hackers used a variety of techniques, including phishing and viruses, to gain access to user accounts and steal the funds.
Concluding Thoughts
The impact of crypto hacks: Crypto hacks have had a significant impact on the cryptocurrency industry, resulting in the loss of hundreds of millions of dollars worth of cryptocurrencies. These attacks have also damaged the reputation of the exchanges and platforms that were targeted, leading to a loss of trust among users.
The importance of security measures: The high-profile crypto hacks highlight the importance of robust security measures to protect against cyber attacks. Exchanges and platforms that handle large amounts of cryptocurrencies should take steps to secure their systems and protect against potential vulnerabilities.
The role of regulators: The crypto hacks have also brought increased attention to the need for regulatory oversight of the cryptocurrency industry. Regulators around the world are starting to take a more active role in overseeing the sector and ensuring that appropriate safeguards are in place to protect against cyber attacks.
The future of crypto: Despite the challenges posed by crypto hacks, the cryptocurrency industry continues to grow and evolve. As more and more people become interested in cryptocurrencies, it is likely that we will see even more adoption and innovation in the sector in the coming years.
Not your keys, not your money.