The five biggest failures of cryptocurrency exchanges

The five biggest failures of cryptocurrency exchanges

The company estimates CipherTrace specializing in cybersecurity in the blockchain environment this year with cryptocurrency exchanges and cryptocell was stolen about 731 million dollars thus the disappearance of a Bithumb was less than 4% of the total stolen.

European FINTECH company Worldcore has prepared a study on five major crashes cryptocurrency exchanges in 2013. The ranking was carried out by the highest value stolen, according to crypto-currencies to the dollar in July 2018.

“Starting historically first hack wallet user Allinvain in June 2011, the cryptocurrency assets represent a tidbit for different kinds of swindlers and hackers, — says Alexey Nasonov. — In the first place because of the high anonymity and digital form, which is so convenient to steal. And also thanks to the carelessness of owners, increasing his fortune many times over recent years, but still perceive Bitcoin as an asset for $ 100”.

Thus, the ranking loss of the cryptocurrency exchanges as follows:

Fifth place

February 2018. Exchange BitGrail. Stolen 17 million XRB/Nano. This amounted to approximately $ 200 million at that time, or $ 40 million in July (2018) rate. Dubious circumstances of the break, indicating that the theft, either directly or indirectly (in trying to cover up older break-in 2017) involved the owners of the exchange. The story became public, traders — no refund. Under pressure filed formal charges against the owner BitGrail Francesco Pirano initially agreed to partially compensate for the loss of those who refuse from further proceedings, and later, by court order, was forced to give up the contents of all cryptocurrency wallets the company by way of compensation for the claims of the victims.

Fourth place

July 2017. One of the biggest exchanges — BTC-e. The exchange was closed by the FBI due to allegations of money laundering and financial fraud. Derived and “blurry” for other wallets at least 485 thousand ETH (100 million dollars then, or 230 million at the moment). Customers unsuccessfully fighting for a refund with “a successor” — the exchange WEX, which, by the way, recently announced liquidation.

Not so simple with the closing of the exchange BTC-e: according to gradually discover the facts, it really is not the most respectable exchange area, and charges of laundering criminal funds against Federal agents, had a good reason.

Third place

January 2018. Coincheck Exchange. One of the few remaining “hot” wallets exchange was stolen 523 million NEM. That is, more than $ 500 million then, or $ 95 million now. So far this is the biggest break-2018 and the second-the third volume in the history of cryptocurrency. Theft totally destroyed the plans of the management in the expansion and development of markets, and the damage to reputation was so great that Japanese financial regulator FSA has imposed some of the most rigid rules of cripture. The very same victim, the exchange has sold all of its stock online broker Monex Group for 34 million dollars.

Second place

Jul 2016. Bitfinex Team. With multi-SIG wallets exchange was stolen 120 thousand bitcoins worth approximately $ 78 million at the time (or 840 million dollars now). The market is not compensation, but issued its own debt token BFX, which is completely exchanged for dollars one-to-one in early April 2017. Given that the first token was trading below 40 cents, it was acceptable procedure for exchange and traders trust her because Bitcoin during this time rose by slightly less than two times. However, not everything went smoothly, and some owners of the stolen money and still trying to get compensation.

The first place

February 2014. Exchange Mt.Gox. Stolen 850 thousand BTC. The greatest theft in the world of cryptocurrency: 425 million dollars then, or, terrible to say, 6.3 billion dollars at the moment. Hacking has become one of the causes of the recession of Bitcoin 2014. Was milled area through which at that time held 80% trades with Bitcoin. After investigations, it became clear that a security problem existed at least since 2011, and that allowed hackers to secretly withdraw large amounts of money by disguising the theft as the placement of funds in “cold” wallets. In 2017 most of the stolen bitcoins were found on the wallets, controlled by Alexander winnick, who has been arrested for laundering criminal money to the owner of the exchange BTC-e.

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