The Biggest Crypto Exchange Hacks Of 2019!

Crypto Exchange Hacks

Here are the biggest crypto exchange hacks of 2019. However, it may seem impossible to hack a crypto exchange due to the fact that it holds and trades cryptocurrencies. However, the security (blockchain technology) behind cryptocurrencies are not responsible for that of the exchanges. Exchanges are controlled by a body (centralized) while cryptos are not (decentralized).

Enough of all the talk and let’s take a look at the major hacks in crypto exchanges in the year 2019.

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Crypto Exchange Hacks

1) THE FIRST: CRYPTOPIA

The Cryptopia hack was actually the first. In the early part of 2019, the exchange lost around $2.44 million in Ethereum (ETH), but also around 48 million CENNZ tokens, which was worth around $1.18 million at the time.

Cryptopia is New Zealand’s major cryptocurrency exchange. And up to this day, this major exchange revealed any technical faults in their part regarding this incident.

 

2) THE LARGEST EXCHANGE TO GET HACKED: BINANCE

Binance is one of the biggest exchanges in the world. And it came as a shock in May 2019 that it was hacked. This attack which led to the theft of $41 million (7,000 BTC) was a result of malware and phishing attacks.

However, Binance was able to refund the money to all of its clients. And is still around as one of the best and biggest exchanges in the world.

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3) THE INSIDER HACK: BITHUMB

Bithumb is the largest cryptocurrency exchange in South Korea. Despite being the largest crypto exchange in the country it, however, managed to be hacked in May 2019. This attack resulted in around $19 million stolen.

Fortunately, clients’ funds were not stolen. The stolen funds were from Bithumb’s own reserve. Reports later made the news that the attack was an inside job by the member(s) of Bithumb staff. And a lot of people are not comfortable with this, and it raises questions like ‘what stops another insider from doing this again?’, etc.

 

4) THE WALLET BREACH: GATEHUB

In June 2019, when the crypto bull run was reaching its climax, XRP Ledger wallet provider, GateHub, announced that as much as $10 million XRP was stolen. According to the announcement, the attackers somehow managed to gain access to the funds by targeting the wallet’s API.

However, there was seemingly no flaw in the API itself, and all access tokens were perfectly valid. The attack still remains a mystery to this day, but it highlighted the issues surrounding visibility introduced by APIs into contemporary systems.

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5) THE MYSTERIOUS ONE: COINBENE

Finally, the last one of the major crypto exchange hacks was CoinBene which started seeing problems back in March 2019. The exchange noticed that the funds were mysteriously leaving its hot wallet, which was very much concerning to analysts and customers alike. The concerns were even greater due to the fact that the platform was down for maintenance, which is a usual post-hack thing to do.

The exchange assured its users that nothing had happened, although it remained down for an entire month. Meanwhile, the funds definitely went missing, but nothing else is known, including how much was stolen.

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