Twelve main cryptocurrency alternate hacks occurred in 2019. Of those, 11 hacks resulted within the theft of cryptocurrency whereas one solely concerned stolen buyer knowledge. In complete, $292,665,886 value of cryptocurrency and 510,000 person logins have been stolen from crypto exchanges in 2019. Cryptocurrency exchanges skilled extra hacks final yr than in 2018, when solely 9 cryptocurrency exchanges fell sufferer to safety breaches.
As time goes on, you may assume that cryptocurrency exchanges would develop into safer. The truth, nonetheless, is that extra hacks on cryptocurrency alternate are happening yr after yr. On the whole, crypto exchanges stay unregulated, and it’s nonetheless unclear which regulatory company has jurisdiction over the crypto markets.
Though there aren’t any established guidelines relating to how cryptocurrency exchanges ought to safeguard buyer funds, there are crypto-friendly nations and states. Canada, Malta and the American state of Wyoming have created crypto-friendly laws that makes it simpler for companies to function and provides them pointers relating to safety practices.
Sadly, not all nations have created pointers or legal guidelines that assist crypto companies function and cut back the danger for customers. The way in which cryptocurrency exchanges retailer and defend their buyer’s wealth differs from alternate to alternate; sadly, this makes cryptocurrency exchanges a hotbed for hacks that outcome within the theft of cryptocurrency or buyer knowledge. Let’s take a better take a look at the cryptocurrency alternate hacks of 2019 and the way a lot cryptocurrency, fiat and buyer knowledge was stolen in every incident.
Associated: Crypto Exchange Hacks in Review
1. Cryptopia
Date: Jan. 14, 2019
Headquarters: New Zealand
Quantity stolen: $16,002,108
Simply two weeks into the yr, the primary hack on a cryptocurrency alternate took place. New Zealand-based Cryptopia was hacked for over $16 million value of cryptocurrency on the time. Social media customers started their very own investigation, in response to which, over 20 totally different cryptocurrencies have been taken from the alternate’s scorching pockets.
2. LocalBitcoins
Date: Jan. 26, 2019
Headquarters: Finland
Quantity stolen: $27,000
Just a few weeks later, the favored over-the-counter Bitcoin alternate LocalBitcoins was the victim of a security breach. Attackers have been in a position to exchange the official hyperlink to the alternate’s discussion board with a fraudulent hyperlink that led customers to a pretend web page that resembled the dialogue board however collected the data of the customers who tried to log in.
The attackers used the data they obtained to steal 7.9 Bitcoin — value $27,000 on the time — from not less than six person accounts.
3. Coinmama
Date: Feb. 15, 2019
Headquarters: Israel
Quantity stolen: 450,000 account usernames and passwords
In simply the second month of the yr, Israel-based cryptocurrency dealer Coinmama learned that its database had been breached. Because of this, an estimated 450,000 person account logins and passwords had been compromised and posted on a darknet registry.
4. DragonEx
Date: March 24, 2019
Headquarters: Singapore
Quantity stolen: $7.09 million
On March 24, Singapore-based alternate DragonEx posted in its official Telegram group that it had skilled a hacking assault, and consequently, a portion of the customers’ and the platform’s crypto belongings had been stolen. Days later, DragonEx launched an announcement on its web site, saying: “On March 24th, DragonEx suffered APT assault, which is the best problem since DragonEx was first launched within the yr of 2017. 7.09 million USDT belongings are stolen.”
5. CoinBene
Date: March 25, 2019
Headquarters: Singapore
Quantity stolen: $105 million
Simply two days after the DragonEx hack, one other cryptocurrency alternate in Singapore, CoinBene, was hacked. Many CoinBene customers grew to become suspicious of a hack when the CoinBene website unexpectedly went down for upkeep. People who have been tracking the CoinBene scorching pockets observed {that a} whopping $105 million value of crypto belongings had been eliminated. Despite the fact that the entire proof is on the blockchain, CoinBene continues to deny that it was ever hacked.
Associated: Over $100 Million Missing: CoinBene Claims Maintenance, a Month of Questions Point Toward a Hack
6. Bithumb
Date: March 30, 2019
Headquarters: South Korea
Quantity stolen: $18.7 million
March was a nasty month for cryptocurrency exchanges. Just some days after the CoinBene hack, Bithumb was hacked for an estimated $18.7 million — $12.5 million in EOS tokens and $6.2 million in XRP. Not like different alternate hacks, Bithumb believed that the theft was an inside job dedicated by a former Bithumb worker who had entry to its scorching wallets.
Associated: North Korea and Crypto: Is the Regime Responsible for Major Hacks?
7. Binance
Date: Could 7, 2019
Headquarters: Malta
Quantity stolen: $40 million
On Could 7, Binance — the world’s largest cryptocurrency alternate — skilled a safety breach. Because of this, 7,000 BTC, equal to $40 million on the time, was stolen. As well as, Binance mentioned that…