Bitcoin is a decentralized digital currency that uses cryptography to secure transactions. Bitcoin transactions are recorded in a digital ledger called a blockchain.
It has a very high market value and is used by a very large number of users. But the issue of security has been a fundamental one for bitcoin since its development.
Ever Biggest Bitcoin Hacks
Bitcoin users are assigned private keys, which allow access to their bitcoins. There is a very secure confirmation system to verify every transaction. Only after confirmations, every block is added to the blockchain.
Even though this much security is behind every transaction, there are threats in the bitcoin network. Here are some of the ever biggest Bitcoin hackings in history.
Mt. Gox hack
The largest and most famous hack of all time is the Mt. Gox hack. 850,000 BTC disappears in February 2014. The company found 200,000 the BTC, but they’re still left with 650,000 BTC to find out.
Before hacking, Mt. Gox was the largest Bitcoin exchange in the world. It handles around 70% of the trading volume. Unlike other incidents, the attack on Mt.Gox is not a single event.
It is reported that the hackers had been skimming coins from the company for years. The root cause of the attack was said to be the lack of coding security of the company.
Bithumb’s hack happened on June 19. About 30 million USD worth of tokens were stolen from the exchange. The attack caused the exchange to drop from 6th to 10th place in the list of exchanges based on trade volumes.
In January 2018 an attack happened on the Japanese cryptocurrency exchange Coincheck. It is reported that there was a loss of about 534 million USD. It is considered to be the biggest threat in the history of cryptocurrency. Coincheck is a NEM-based crypto exchange.
Coincheck was the biggest cryptocurrency exchange in Asia. The exchange promised to pay the users, 426 million USD from their internal funds to compensate for the loss.
BitGrail is an Italian exchange and an attack happened in February 2019. It is said that 195 million USD in the form of token nano was stolen from the exchange.
The Bitfinex Hack
In August 2016, an attack was happed on a crypto exchange called Bitfinex. Nearly 120000 bitcoins worth 72 million USD were stolen from the user accounts.
In order to increase security, Bitfinex uses multiple keys for the transaction. The hackers gained these multiple numbers of keys to drain coins from the users.
Nicehash is a crypto mining service that allows mining equipment owners to rent their hash power to mine cryptocurrencies. In December 2017 they reported that more than 4000 bitcoin tokens were stolen by attackers.
At the time of the attack, these tokens were worth 63 million USD. The tokens were sent to an unknown address which Nicehash was not able to access.
Coinrail is a South Korean exchange that was attacked in June 2019. It is reported that 37 million worth of digital currency was stolen from the exchange. Bitcoin lost around 11% of its total value due to the hack.
The private keys assigned for each Bitcoin wallet give access to the Bitcoin. Hackers can infiltrate wallets and steal bitcoins if they know a user’s private key. This article delivered exciting knowledge for you. Above given are the biggest Bitcoin hacks that happened in history.