Popularity always has side effects. The rapid development of cryptography draws attention not only to obvious manifestations and involvements, but also to criminals. The latter really enjoy attacking cryptocurrency exchanges. This is not surprising, since with a successful assassination attempt, a big jackpot is practically guaranteed, and the likelihood of exposure and detention is still minimal.
Exchanges invest a lot of effort and money in security. Of course, this is very upsetting for hackers, but it does not stop them. However, in addition to hackers, scammers of all stripes have also reached out in the cryptosphere, and some of them have been very successful.
Now let’s take a look at some of the most impressive hacks and scams in the crypto world.
Mt.Gox is the first weighted in the history of the crypto world
The Mt.Gox exchange was one of the very first cryptocurrency trading platforms and the largest for its time, although it was “for some reason” impossible to exchange ETH to BNB there. In 2011, the platform processed about 70% of all BTC transactions. Unknown Receipts hacked very carefully and stole 25,000 coins (about $400,000).
A second attack was made in 2014. In total, 7% of all BTS received as a result of the calculation of about 473 million dollars were stolen. However, during the investigation, the platform’s discovered wallets were unearthed.
Mt.Gox did not suffer a second stroke and frequent illness, but still gradually objects to the incidence of children.
OneCoin is the defendant in the first cryptocurrency fraud lawsuit
Onecoin, an old-style pyramid scheme that took shape in Japan in 2014. This “project” is run by Ruja Ignatova from Bulgaria, free as Cryptoqueen.
Ignatova can release a more understandable, convenient and simple cryptocurrency. Contributors have already succeeded in “learning packages”, in the discovery of which there was both cryptocurrency and its impact on it. The cost of the package started from a modest few hundred and reached 118,000 euros. If the owner of the “package” brought something else to the project, he managed to get a good percentage of the loss.
Ignatova claimed that the new coin was backed by gold, where reserves could be found in a very secure location. Youtube still has a footage of the Ruzhi stadium performing at one of the largest promotional events at Wembley.
For all the time of her active work, Ignatova collected about $ 4 billion and disappeared in 2017. I didn’t see her again. She is on the FBI’s Most Wanted List for information leading to her search for a $100,000 reward.
During a court hearing, OneCoin co-founder Sebastian Greenwood pleaded guilty to fraud and money laundering.
Binance is the most famous name
Crypto exchange Binance is by far the leader in the cryptocurrency business in many ways, and its ecosystem continues to rapidly transport. Yet Binance was also vulnerable.
The first successful cyberattack occurred in May 2019. Hackers stole more than 7,000 bitcoins (about $40 million) from the exchange’s hot wallet and took possession of a large array of valuable data.
Surprisingly, all the stolen coins belonged to the same cryptocurrency wallet. The exchange said its Safe User Asset Fund (SAFU) is hiding all losses.
Another successful hack took place in October 2022. The hackers used the BSC Token Hub gateway, part of the Binance Additional Coin (BNB) and withdrawn 2 million BNB tokens. A total of $570 million was stolen.
Upbit – record theft in one transaction
Upbit was allowed in 2017 in South Korea and quickly gained worldwide popularity. In 2018, it became the travel platform by the number of daily transactions. In November 2019, the exchange was attacked by a group of hackers and covered more than $45 million in one transaction.
In the days following the attack, the hackers sent the stolen coins to other wallets to cover their tracks. There has been a development at the US Department of Justice of two Chinese nationals involved in the hack.
SQUID – Squid Game in the crypto world
The resounding success of the Squid Game series led a group of bad guys to a brilliantly simple idea. They discover a SQUID token that has access to a Play-to-Earn game inspired by the case.
Fans of the novel were quick to invest in the new token. It promised very large and lucrative returns than even the most optimistic XLM price prediction scenarios could have predicted. The excitement around the new asset pushed the price up, people hastily increased the amount of investments. However, very soon it is expected that the sale of tokens is not possible, and all the money invested has disappeared. Unknown scammers stole more than $3 million from gullible infections.
Fraud schemes and talented hackers will always exist. Every person can become victim, it’s just a matter of time. So remember, if a new crypto project seems suspicious to you, most likely it doesn’t seem to you and it’s better to bypass it. And of course, you should not store all your coins on an exchange wallet.