Mining City Reviews the 10 Biggest Cryptocurrency Hacks

Mining City is a platform that provides mining plans, giving users access to hash power and mining rewards.  Hashpower is the computing power needed to generate cryptocurrencies.

There have been many widespread scams and attempts to defraud cryptocurrency customers over the past several years, which has prompted increased regulation and efforts by responsible companies to deter fraudulent activities and scams.  For example, Mining City has had to delete more than 500 scam profiles on social media. These profiles impersonate the founder of Mining City, Greg Rogowski, or Mining City itself across Facebook, Instagram, and even Skype. 

Mining City takes its responsibilities to customers seriously and any brand or company you choose to work within the cryptocurrency industry should do the same.  In this article, some of the biggest cryptocurrency hacks of the past decade are exposed, underscoring the importance of working with companies that take safety, security, and compliance seriously.

To learn more about Mining City, its products and services visit Mining City’s official social media portals on Facebook, Instagram, Telegram, YouTube and Twitter.

1.    Mt. Gox

Mt. Gox was a company that at its peak had around 70% of global bitcoin transactions. However, in 2014, a hack occurred where over 740,000 bitcoins were stolen from customers and 100,000 from Mt. Gox itself. The company could not shut down the hack in time and ran out of business near the beginning of 2014.

Though the hack was discovered in 2014, later studies suggested that it had been going on since the company was first hacked in 2011. The company did not have a lot of organization, and a lot of money was thought to have been missing, nearly 80,000 coins when the exchange was bought in 2011, and it was found out that hackers had access to the owner of Mt. Gox since 2011. This made it hard to determine the exact amount that was taken during the hack, and how much had been taken altogether.

2.    KuCoin

In 2020, hackers managed to steal from a company known as KuCoin. Kucoin was founded in 2011 and supported large cryptocurrencies such as Bitcoin and Ethereum. During the hack, over 285 million dollars was stolen from 154 different types of tokens. Thankfully, Kucoin’s quick response allowed them to regain 240 million dollars of that with the help of law enforcement.

Thankfully KuCoin also had insurance that covered the remaining loss, allowing them to ensure that no user of their platform lost out on money. They also increased their security shortly after to reduce the risk of being hacked in the future. 

3.    Coincheck

In 2018, Coincheck was hacked by an unknown group. Over $500 million was stolen, and most of it was never recovered. A few people in Japan were caught by the local government as they tried to sell some of the stolen currency, but that was all that was recovered.

However, Coincheck paid back all of its customers using the company’s own capital. They admitted the hack was due to a lack of staff. After paying back their customers, Coincheck refused to quit. They hired more people and strengthened their security.

4.    BitMart

In 2021, $196 million was stolen from Bitmart. $100 million was stolen from the Ethereum blockchain while the other $96 million was from Binance’s Smart Chain. The hack occurred due to a security breach from private keys that had been stolen for two of their hot wallets. Thankfully, these wallets only held a small number of assets, so more money wasn’t taken. 

This is when cold wallets were first heavily used, as this hack frightened many people into looking for a safer option.

As of early 2022, many people still hadn’t been refunded their money, though BitMart had said they were planning to reimburse all of their users with their own money.

5.    Pancake Bunny

In mid-2021, a DeFi farming platform known as Pancake Bunny was hit with something known as a flash loan attack. This allows users to manipulate the market and take advantage of weaknesses in the software by sending and canceling a loan within the timespan before a new block in the blockchain can form.

During this attack, $200 million worth of BUNNY and BNB tokens were stolen. Thankfully, no one was harmed during this attack, as users were targeted. However, the value of these tokens dropped dramatically.

6.    Poly Network

Poly Network lost $610 million in 2021. The money was moved from the network to an external wallet. The money was noticed to be missing immediately and the Poly network knew the next step to try to liquidate the stolen coins for something more anonymous.

They requested both miners and exchanges to not trade for the stolen funds. We aren’t sure how many people chose to listen, but the stablecoin Tether was one of the ones that did and managed to do it just before the attacker tried to get rid of their coins.

The attacker gave some of their funds to people as a reward so Poly Network decided to try asking the attacker for their money back. The attacker returned over half of the tokens, in return for Tether no longer being frozen.

7.    Bitgrail

The hack to Bitgrail was estimated to have caused losses of 146.55 million dollars in cryptocurrency from 230,000 users. However, instead of this being nothing more than an unfortunate accident, it is thought that the man who ran the exchange took the money from his own platform and hid it as a hack.

This is due to several reasons. One was that the hack was threatened for months, and yet the man who ran the platform did nothing to reinforce his security. The hacks also occurred several times and though the platform was aware of these hacks, they did nothing to stop or prevent them.

8.    Vulcan Forged

Vulcan Forged was a company that provides a wallet for cryptocurrency named MyForge. When they first started up, their wallets were co-managed by the user and the project. However, Vulcan Forged failed to secure the keys on their end, and $140 million was stolen from the users.

They were quick to accept blame and change their practices, no longer co-managing the keys and allowing users to keep the keys private on their own. They were also quick to refund their users.

9.    Cream Finance

CREAM was hacked by two different addresses that worked together to double the perceived value of the shares. They used a flash loan to adjust the market prices as loans do not require collateral and anyone can use one.

The worst part of this hack was that it didn’t only happen once. In 2021, they faced three large attacks that totaled $130 million in February, August, and October. All of these exploited the lending system that is one of the biggest issues with DeFi systems.

10.                       Upbit

In 2019, 342,000 Ether tokens were stolen for a total of $45 million from Upbit. What makes this hack so crazy is that it was done in one single transaction instead of small transactions over time.

This hacker bided their time once they realized the funds were being watched and tried to exchange their money several months after it was stolen though it was still tracked. However, there hasn’t been much progress in the case, as no hacker has been identified.

Harris Shawn
Author: Harris Shawn

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