News

The biggest cryptocurrency hacks so far

Published

11 months ago

14 May, 2024

One of the barriers to mainstream adoption of digital currency has been hacking. Some high-profile thefts have occurred on various cryptocurrency exchanges and platforms, dissuading investors from investing their money.

It has been argued that blockchain projects are secure, but attacks over the years have shown this to be only partially true. According to blockchain data platform Chainalysis, more than $3.8 billion worth of cryptocurrencies were stolen from users in 2022. Take a look at some of the biggest crypto hacks to date.

Key points

Hacking remains a major barrier to cryptocurrency adoption.
Cryptocurrency exchanges are a major target for hackers, with over $3.8 billion stolen in 2022.
The first major exchange to suffer a cyberattack was Mt. Gox, which lost 7% of all bitcoins at the time.
Decentralized financial applications and smart contracts are also a favorite target for hackers.
Some of the most important safety rules for long-term investors are to keep cryptocurrencies offline if you are not actively trading or spending them, and not using custodial accounts unless they provide insurance.

Ronin Network: $625 million

The largest cryptocurrency hack to date was conducted in March 2022 and targeted the network that supports the popular Axie Infinite blockchain gaming platform. Hackers breached the Ronin network and stole approximately $625 million in Ethereum and USDC stable currency. US officials said a North Korean state-backed hacker collective, Lazarus Group, was linked to the theft. Binance recovered $5.8 million of the stolen funds a month later, but as of December 2, 2023, it would still be the largest hack in history.

Poly Network: $611 million

In August 2021, a lone hacker pounced on a vulnerability in the Poly network decentralized finance platform and has earned over $600 million. The project’s developers appealed to X (formerly Twitter) for the stolen funds, which included $33 million Bind. The Poly Network then established several addresses to return the funds to, and the unknown hacker began cooperating. After just two days, approximately $300 million was recovered and it was discovered that the hacker had targeted the network “for fun” or as a dare.

FTX: $600 million

In November 2022, FTX, one of the most influential players in the cryptocurrency industry, declared bankruptcy. The day you applied Chapter 11 failure, more than $600 million was stolen from its crypto wallets. Many FTX wallet holders reported $0 balances in their FTX.com and FTX US wallets.

The cryptocurrency exchange confirmed the hack on its Telegram channel, saying: ”FTX has been hacked. FTX apps are malware. Eliminate them. The chat is open. Do not go to the FTX site as it may download Trojans.” FTX General Counsel Ryne Miller later tweeted that the cryptocurrency exchange was making “every effort to protect all assets, wherever they are located.”

Binance BNB Bridge: $586 million

In one of the highest profile attacks in cryptocurrency history, the The Binance exchange has been hacked for $570 million in October 2022. A crossed chain bridgeBSC Token Hub, was exploited by hackers, who created and withdrew another 2 million Binance Coins (BNB). A bug in a smart contract enabled hacking, highlighting the need for greater blockchain security.

$3.8 billion

The amount of cryptocurrency stolen from exchanges and other platforms in 2022.

Coincheck: $534 million

In January 2018, the Japanese stock exchange Coincheck suffered a theft of 523 million dollars NEM coins worth approximately $534 million. The vulnerability was created by a warm walletwhich is a live cryptocurrency wallet and not as secure as the offline one cold rooms wallet. At the time, the Coincheck hack was even bigger than the infamous one Mount Gox hack; NEM Foundation President Lon Wong described it at the time as “the largest theft in the history of the world.”

Coincheck survived the hack and continued to operate despite being purchased a few months later by Japanese financial services firm Monex Group.

Mt. Gox: $473 million

The first major attack on cryptocurrencies occurred in 2011, when the cryptocurrency exchange was launched Mount Gox lost 25,000 bitcoins worth about $400,000. At the time, the cryptocurrency exchange handled nearly 70% of all bitcoin transactions.

The attack did not stop and Mt.Gox was attacked again in 2014. It lost almost 650,000 of its customers’ bitcoins and around 100,000 of its own. At the time, it accounted for 7% of all bitcoin and was worth about $473 million. The initial reasons for the coins’ disappearance were unclear, but subsequent evidence showed that the coins had been stolen from the company’s hot wallet.

Wormhole: $325 million

The decentralized finance platform Wormhole was targeted in February 2022, with $325 million taken by hackers. The attack was made possible by an update to the project’s GitHub repository, which was then not deployed to the live project. The popular cryptocurrency bridge had to plug the hole in the project’s finances after the funds were not recovered. This was also the largest theft included Solana, one of the rivals to Ethereum’s dominance in the worlds of DeFi and NFTs. Up to $47 million was withdrawn into the blockchain’s native SOL token.

Euler Finance: 197 million dollars

Euler Finance is a lending and borrowing protocol platform based on the Ethereum blockchain. On March 13, 2023, hackers conducted a flash loan attack, seizing $197 million in Bitcoin (wBTC), DAI (a MakerDOA stablecoin), staked ether (stETH), and USDC. A flash loan attack occurs when a hacker uses a flash loan – an unsecured loan that must be paid in full in the same transaction, often used by traders in arbitrage – to withdraw large amounts, allowing thieves to manipulate prices.

However, in a strange twist, several days later the hackers began returning the stolen funds, saying they were worried about their safety.

Bitmart: $196 million

December 2021 saw a cyber attack on the centralized exchange Bitmart with losses of $196 million. The hack was first noticed by a security analysis firm, which noticed BitMart addresses being drained of their balance. Approximately $100 million in various cryptocurrencies was funneled through Ethereum, with another $96 million exiting via Binance Smart Chain. All tokens were moved to an address labeled by Etherscan as “BitMart Hacker.”

Nomad Bridge: 190 million dollars

Only a month before the Wintermute breach a more significant attack occurred, an attack on the Nomad Bridge. The hackers drained $190 million of the project’s funds. Nomad is a cryptocurrency bridge which allows users to exchange tokens between blockchains, but these have become the latest target for hackers. This is due to the considerable value of the assets they hold and the complexity of the smart contract code they are based on. Nomad Bridge subsequently recovered $36 million of the stolen funds.

Beanstalk: $182 million

This hack involved exploiting a decentralized finance (DeFi) platform using a flash loan. After borrowing $1 billion, the hacker took a 67% controlling stake in the project and approved the transfer of funds to his wallet before repaying the loan and disappearing. The entire process of performing the hack took just 13 seconds.

Winter silent: 162 million dollars

Wintermute, one of the main cryptocurrencies Market makerwas attacked in September 2022. The the project lost about $160 million in a hack, which made things worse for Wintermute because they owed $200 million to other market participants. The CEO offered a 10% reward to the hacker if he returned the funds.

Multichain: $125 million

Multichain claimed to be a cross-chain router protocol, which would theoretically allow almost all blockchains to communicate with each other and transfer assets across them, something that was and is necessary for Web 3 to continue to progress.

Multichain’s CEO, known as Zhaojun, was reportedly arrested in China and has disappeared, leaving analysts to believe that the theft was the result of a theft, where the owners/developers of the system create a product, lure funds and suddenly walk away with the money.

How do hackers steal from a cryptocurrency exchange?

Most cryptocurrency thefts occur due to compromised credentials, such as stealing a user’s password or private keys. In some cases, hackers might even use phishing, keylogger or SIM swap to access the user’s account. In larger attacks, hackers can directly target an exchange by exploiting weaknesses in its security protocols or trading software.

How to keep cryptocurrency safe from hackers?

The most important rule for storing bitcoin or other cryptocurrencies is to keep your digital assets in a offline wallet where you control the private keys. Most digital currency thefts occur because wallets or keys are left in an online device, making them vulnerable to malware. Apart from that, it is also important to use strong passwords and two-factor authentication for each account, especially those used for cryptocurrency trading.

What happened to the FTX cryptocurrency exchange?

THE failure of the FTX exchange it was one of the biggest scandals in the history of cryptocurrencies. While many factors contributed to the collapse, the biggest mistake was the decision to pool user assets with those of Alameda Research, a trading company nominally separate from FTX. Alameda took risky bets with FTX client funds, creating a liquidity crisis for both companies. Sam Bankman-Fried and other executives have been accused of a wide range of crimes, from securities fraud to money laundering.

The bottom line

With the addition of new products, the cryptocurrency industry has grown rapidly since the mid-2010s. The industry may even be advancing too fast, as the number of cyberattacks and thefts demonstrate exploitable weaknesses. Back-to-back cyber attacks have exposed the vulnerability of the cryptocurrency sector and undermined investor confidence. To avoid further damage to sentiment, developers need to provide greater security to blockchain networks.

The comments, opinions and analyzes expressed on Investopedia are for online information purposes. Read ours warranty and exclusion of liability for more information.

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News

Ether Drops Further After ETF Launch

Published

9 months ago

23 July, 2024

Blocksight Staff

Bitcoin Surpasses $66,000 Thanks to Strong ETF Flows

Key points

Spot ether ETFs began trading in the U.S. today, with the funds initially having more than $10 billion in collective assets under management.
Analysts expect the launch of spot ether ETFs to have a net negative impact on the underlying price of ether in the near term, due to expected outflows from the pre-existing Grayscale Ethereum Trust.
Spot Bitcoin ETFs continue to see strong inflows, with BlackRock’s IBIT alone seeing more than $500 million in inflows on Monday.
Franklin Templeton, a spot ETF issuer on bitcoin and ether, has invested in a project that intends to bring Ethereum technology to Bitcoin.

Nine-point ether exchange-traded funds (ETFs)) started trading on the stock market on Tuesday, but all the optimism ahead of their approval did not translate into gains for the cryptocurrency markets.

Ether (ETH), the native cryptocurrency of the Ethereum blockchain, dropped less than 1% around the $3,400 level as of 1:30 PM ET, while Bitcoin (BTC) fell more than 2% to around $66,000.

Ether ETFs’ Debut Isn’t as Flashy as Bitcoin ETFs’

Spot ether ETFs began trading at just over $10 billion assets under management (AUM)), according to Bloomberg Intelligence analyst James Seyffart, most of that money is in the current Grayscale Ethereum Trust (ETHE) which has now been converted into an ETF.

“In the long term, Grayscale will simultaneously have the highest and lowest fees in the market. The asset manager’s decision to keep its ETHE fee at 2.5% could lead to outflows from the fund,” Kaiko Research said in a note on Monday.

Outflows from ETHE, if they occur, would be similar to those faced by Grayscale’s Bitcoin Trust (GBTC) after spot bitcoin ETFs began trading in January of this year, most likely due to high fees for the two original funds. Grayscale’s existing fund charges 2.5% fees, while a new “mini” ether ETF will charge 0.15% and commissions for other ETFs are set at 0.25% or less.

Such outflows could impact the price of ether and market sentiment.

“There could be a pullback shortly after the launch of Ethereum spot ETFs, i.e. outflows from Grayscale Ether Trust could dampen market sentiment in the short term,” Jupiter Zheng, a partner at Hashkey Capital’s liquid fund, told The Block.

But Grayscale remains optimistic.

“Compared to the splashy debut of spot bitcoin ETPs in January, the launch of ethereum ETPs has been relatively muted,” said Zach Pandl, Grayscale’s head of research, adding that investors may be “undervaluing” ether ETFs that are “coming to the U.S. market in tandem with a shift in U.S. cryptocurrency policy and the adoption of tokenization by major financial institutions.”

Bitcoin ETF Inflows Continue to Rise

As for bitcoin, there is clearly no lack of demand for spot ETFs, such as BlackRock’s iShares Bitcoin Trust (IBITS) recorded its sixth-largest day of inflows in its short history on Monday, at $526.7 million, according to data from Farside Investors. Daily inflows for the overall spot bitcoin ETF market also hit their highest level since June 5.

In particular, asset manager Franklin Templeton, which has issued both bitcoin and ether ETFs, appears to have decided to cover its back when it comes to Ethereum by investing in Bitlayer, a way to implement Ethereum technology on a second-layer Bitcoin network, according to CoinDesk.

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Spot Ether ETFs Start Trading Today: Here’s What You Need to Know

Published

9 months ago

23 July, 2024

Blocksight Staff

Spot Ether ETFs Start Trading Today: Here's What You Need to Know

Key points

Spot ether ETFs will begin trading on U.S. exchanges on Tuesday. Nine ETFs will trade on Cboe BZX, Nasdaq and NYSE Arca.
Ether ETFs offer investors exposure to the price of their underlying assets.
Commissions on these new ETFs generally range from 0.15% to 0.25%.
These ETFs do not provide exposure to Ethereum staking.

The U.S. Securities and Exchange Commission (SEC) has officially approved nine ether spots (ETH)exchange-traded funds (ETFs) for trading on U.S. exchanges. Trading for these new cryptocurrency investment vehicles begins today. Here’s everything you need to know.

What new ether ETFs are starting to trade today?

Spot ether ETFs starting trading today can be found at Quotation, NYSE Arkand Cboe BZX. Here’s a breakdown of each ETF you can find on these three exchanges, along with the fund tickers:

Cboe BZX will list the Invesco Galaxy Ethereum ETF (QETH), the 21Shares Core Ethereum ETF (CETH), the Fidelity Ethereum Fund (FETH), the Franklin Ethereum ETF (EZET) and the VanEck Ethereum ETF (ETHV).

Nasdaq will have the iShares Ethereum Trust ETF (ETHA) created by BlackRock, which also operates the largest spot bitcoin ETF under the ticker IBIT.

NYSE Arca will list the Bitwise Ethereum ETF (ETHW) and the Grayscale Ethereum Trust (ETHE). The Grayscale Ethereum Mini Trust (ETH), which will begin trading on the same exchange.

How does an ether ETF work?

Spot ether ETFs are intended to offer exposure to the price of ether held by the funds. Ether is the underlying cryptocurrency of the Ethereal network, the second largest crypto network by market capitalization.

ETF buyers are buying shares of funds that hold ether on behalf of their shareholders. Different spot ether ETFs use different data sources when it comes to setting the price of ether. Grayscale Ethereum Trust, for example, uses the CoinDesk Ether Price Index.

None of the ETFs launching today include pointed etherwhich represents a potential opportunity cost associated with choosing an ETF over other options such as self-custody or a traditional cryptocurrency exchange.

Ether staking currently has an annual return of 3.32%, according to the Compass Staking Yield Reference Index Ethereum. However, it is possible that the SEC will eventually approve Ether staking held by ETFs.

How can I trade Ether ETFs?

ETFs can simplify the trading process for investors. In the case of cryptocurrencies, instead of taking full custody of the ether and taking care of your own private keysSpot ether ETFs allow investors to purchase the cryptocurrency underlying the Ethereum network through traditional brokerage accounts.

Today, not all brokers may offer their clients spot ETFs on cryptocurrencies.

What are the fees for ether ETFs?

The fees associated with each individual spot ether ETF were previously revealed In the S-1 OR S-3 (depending on the specific ETF) deposit associated with the offerings. These fees are 0.25% or less for all but one.

The Grayscale Ethereum Trust, which converts to an ETF, has a fee of 2.5%. The Grayscale Mini Ethereum Trust has the lowest fee at 0.15%. These fees are charged on an annual basis for the provider’s management of the fund and are in line with what was previously seen with spot bitcoin ETFs.

Brokers may also charge their own fees for cryptocurrency trading.

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News

Kamala Harris Odds Surge Amid $81M Fundraise. What Does It Mean for Bitcoin and Cryptocurrencies?

Published

9 months ago

23 July, 2024

Blocksight Staff

Kamala Harris Odds Surge Amid $81M Fundraise. What Does It Mean for Bitcoin and Cryptocurrencies?

Market odds and memecoins related to US Vice President Kamala Harris have soared as the latest round of donations tied to the Democratic campaign raised $81 million in 24 hours, bolstering sentiment among some traders.

The odds of Harris being declared the Democratic nominee have risen further to 90% on cryptocurrency betting app Polymarket, up from 80% on Monday and setting a new high.

Previously, in early July, bettors were only betting on 8%, but that changed on Saturday when incumbent President Joe Biden announced he would no longer run in the November election. Biden then approved Harris as a candidate.

Polymarket traders placed $28.6 million in bets in favor of Harris, the data showsThe second favorite is Michelle Obama.

Somewhere else, Memecoin KAMA based on Solanaa political meme token modeled after Harris, has jumped 62% to set a new all-time high of 2 cents at a market cap of $27 million. The token is up a whopping 4,000% from its June 18 low of $0.00061, buoyed primarily by the possibility of Harris becoming president.

As such, Harris has yet to publicly comment on cryptocurrencies or her strategy for the growing market. On the other hand, Republican candidate Donald Trump has expressed support for the cryptocurrency market and is expected to appear at the Bitcoin 2024 conference on Saturday.

However, some expect Harris or the Democratic Party to mention the sector in the coming weeks, which could impact price action.

“While he has not yet received the official nomination, there is consensus that last night’s development is in line with current Democratic strategy,” cryptocurrency trading firm Wintermute said in a Monday note emailed to CoinDesk. “Keep an eye on Democrats’ comments on this issue in the coming days.

“The prevailing assumption is that Harris will win the nomination and any deviation from this expectation could cause market volatility,” the firm added.

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Top 30x Cryptocurrency and Coin Presales Today: Artemis Coin at #1, Others Are: BlockDAG, 99Bitcoin, eTukTuk, and WienerAI

Published

9 months ago

23 July, 2024

Blocksight Staff

Top 30x Cryptocurrency and Coin Presales Today: Artemis Coin at #1, Others Are: BlockDAG, 99Bitcoin, eTukTuk, and WienerAI

The cryptocurrency market has seen a lot of growth and imagination lately, with new ventures popping up regularly. A critical pattern in this space is the rise of crypto pre-sales, which give backers the opportunity to get involved with promising projects early on. Artemis is a standout option for crypto investors looking to expand their portfolios amid the many pre-sales currently underway.

Cryptocurrency presales, commonly referred to as initial coin offerings (ICOs), allow blockchain ventures to raise capital by offering their local tokens to early backers before they become available on open exchanges. Investors can take advantage of these presales by purchasing tokens at a lower price. If the project is successful and the token’s value increases, investors stand to receive significant returns.

>>> Explore the best cryptocurrency pre-sales to buy now <<

The Ultimate List of the Top 5 Cryptocurrency Pre-Sales to Invest In

Artemis: The aim of Artemis (ARTMS) will become the cryptocurrency equivalent of eBay or Amazon. The upcoming Phase 4 will see the launch of the Artemis Framework, which will serve as a stage for digital money exchanges where buyers, sellers, specialized organizations and those seeking administration can participate in coherent exchanges.
DAG Block: uses Directed Acyclic Graph technology to increase blockchain scalability.
99bitcoin: operates as a crypto learning platform
WienerAI uses AI-powered trading bots for precise market analysis.
eTukTuk focuses on environmentally sustainable transportation options, such as electric vehicle charging infrastructure.

We have determined that Artemis is the best new cryptocurrency presale for investment after conducting extensive research. It presents itself as the unrivaled cryptocurrency presale choice currently open.

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Top 5 Crypto Pre-Sales and Best Cryptocurrencies for Investment Today

Artemis (ARTMS) is attempting to establish itself as the cryptocurrency version of eBay or Amazon. The Artemis Crypto System, which will act as a platform for cryptocurrency transactions, will be launched in Phase 4. Buyers, sellers, service providers, and requesters will all benefit from seamless trading with this system. Customers will be able to purchase things, such as mobile phones using digital money, as well as sell products such as involved bicycles and get paid in cryptocurrency. Additionally, crypto money can be used to pay for administrations such as clinical consultations, legitimate care, and freelance work. Artemis Coin will act as the main currency of the ecosystem, with Bitcoin and other well-known cryptocurrencies from various blockchain networks backing it.

Artemis Coin has increased in price from 0.00055 to 0.00101 from 0.00094. Artemis may be attractive to individuals looking to recoup losses in Bitcoin, as predicted by cryptocurrency analysts. At this point, it seems to present an interesting presale opportunity.

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The world of digital currency pre-sales is an exciting and exciting opportunity that could open the door to game-changing blockchain projects. Projects in this article, like Artemis Coin, offer the opportunity to shape the future of various industries and the potential for significant returns as the industry develops.

However, it is imperative to approach these investments with caution, thorough research, portfolio diversification, and awareness of the risks. You can explore the digital currency pre-sale scene with greater certainty and increase your chances of identifying and profiting from the most promising venture opportunities by following the advice and methods in this article.

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