Crypto

The Boldest Blockchain Hacks Ever – Decrypt

Published

12 months ago

July 6, 2023

The Boldest Blockchain Hacks Ever – Decrypt

The distributed, decentralized ledgers known as blockchains have been hailed as impenetrably secure by many in the cryptocurrency community. How could a blockchain be hacked, the thinking goes, when the ledger of transactions for a cryptocurrency ecosystem is publicly available and shared across a network, and when transactions themselves are verified by members of the community? Unfortunately for cryptocurrency market participants, though, some of these systems are not as impregnable as originally thought.

As the public awareness of crypto has grown and as token valuations skyrocketed in recent years, hackers and fraudsters may have had added incentive to find a way to steal digital currencies because of the potential for an even greater payday. Indeed, stealing cryptocurrencies—again, when tokens are massively popular in part because they have been marketed as highly secure ways of transacting and storing value—has become big business. In 2022 a record $3.8 billion worth of crypto tokens was stolen globally.

To be fair, a significant majority of stolen tokens (about 80% last year) were taken from decentralized finance (DeFi) protocols, and two-thirds of DeFi thefts involved cross-chain bridge protocols. These bridges allow users to exchange assets across different blockchains and typically hold large reserves of different tokens, potentially opening themselves up to increased attention from thieves and reduced security within a single blockchain ecosystem.

Nonetheless, blockchain and crypto hacks appear to be getting bolder than ever before. Below, we take a closer look at the most brazen blockchain and cryptocurrency hacks ever.

Mt. Gox Opens the Gates to Crypto Theft

The now-defunct crypto exchange Mt. Gox is notorious for being the target of the first major crypto hack and theft. In 2011, Mt. Gox handled about two-thirds of all bitcoin transactions when it suffered the theft of 25,000 BTC, worth roughly $400,000. While this sum may seem relatively minor compared with the valuation of bitcoin since that time, it was not the only such attack on Mt. Gox. In 2014 another incident resulted in 750,000 bitcoins lost, worth $473 million. At the time, this accounted for about 7% of all bitcoins in existence.

Binance Suffers a BNB-Related Hack

Binance remains one of the major crypto exchanges globally as of this writing, but in late 2022 it suffered losses of about $570 million when hackers were able to exploit a smart contract bug that left the blockchain vulnerable. The thieves made use of the cross-chain bridge BSC Token Hub to create extra Binance Coins (BNB) and withdraw about 2 million of these tokens, which are native to Binance.

FTX Implodes and Thieves Take Advantage

One of the boldest cryptocurrency thefts is also one of the most recent. In November 2022, cryptocurrency exchange and hedge fund FTX dominated the news when it filed for Chapter 11 bankruptcy, eventually collapsing entirely. On the same day, thieves stole more than $600 million from the company’s cryptocurrency wallets. The brazen attack may have capitalized on internal turmoil, leading the company to later announce to users that its own apps were hacked and that they should delete them. Unfortunately, the theft left many FTX account holders tokenless.

The Largest-Ever Hack: A Blockchain Gaming Platform

To date, the largest crypto hack occurred when $625 million in ethereum and the USDC stablecoin were stolen from the Ronin Network, an ecosystem affiliated with the Axie Infinity blockchain gaming platform. U.S. officials attributed the attack to the Lazarus Group, a North Korean state-backed hacking collective. The hackers reportedly were able to access private keys and forge transactions on the blockchain.

Major DeFi Attack on the Poly Network

One of the largest DeFi-related attacks took place in the summer of 2021. A single hacker exploited a vulnerability in the DeFi platform of the Poly Network to steal $611 million in a variety of tokens. Poly Network developers pleaded with the anonymous hacker to return the funds. Oddly, two days after the attack the hacker did, in fact, return about half of the stolen tokens, acknowledging that they had targeted Poly “for fun.”

Another DeFi Casualty: Wormhole

Last year, experimental DeFi platform Wormhole, a popular bridge service, suffered the loss of about $326 million in Wrapped Ethereum (WETH) tokens. Hackers attacked the platform’s leg on Solana, where users lock ETH tokens in order to receive WETH. Fortunately in this case, the parent company of Wormhole, Jump Trading, replaced the stolen funds and repaired the bridge, but this is nonetheless a lesson that hackers are ready and waiting to exploit new protocols the moment a weakness is found.

Nomad Hackers Inspire Copycats

In August of last year, another token bridge, Nomad, lost about $190 million when it suffered multiple attacks as a result of a smart contract weakness that left transaction inputs unvalidated. The particularly bold aspect of this incident was that an original attacker seems to have inspired several copycats who utilized the same weakness before it was corrected. Some of these copycat hackers even attempted to intercept stolen funds and return them to the Nomad protocol, while others followed the original hacker and stole additional tokens.

Thieves Exploit Governance Protocols

Some of the boldest blockchain thefts are not “hacks” exactly, but rather attacks on crypto ecosystems that take advantage of the structure of those systems to complete malicious actions. The infamous 51% attack—in which bad actors assume control over a blockchain by gathering a majority of participants in the network and falsifying or otherwise redirecting transactions—is one of the best-known examples of this type of exploitation. But there are many other approaches that clever teams of thieves have devised as well.

In 2022, the stablecoin protocol Beanstalk Farms fell victim to an attacker who stole $76 million by manipulating the system’s governance. The attacker used a flash loan to purchase governance tokens, and then used the authority from those tokens to pass proposals inserting malicious smart contracts.

Not all of the above attacks have targeted blockchains specifically. Some have identified security weaknesses for crypto exchanges that can be exploited, while many others have taken advantage of newer offerings like crypto bridges and DeFi protocols. In some cases, thieves have found unsecured wallets, while in other situations attackers find clever ways to take control of an entire ecosystem. Regardless of the means, the fact that crypto attacks occur as frequently as they do—and that even some of the largest players in the crypto space have suffered from thefts—should be a reminder to all cryptocurrency holders to be as careful as possible when it comes to keeping tokens secure.

Interestingly, trends may be shifting. The first quarter of 2023 witnessed some 40 attacks on crypto projects, resulting in about $400 million stolen. This is only about 30% of the attacks perpetrated during the first three months of 2022. The average hack size also declined by about two-thirds to just over $10 million as well. And perhaps most puzzlingly, more and more hackers seem to return the money that they steal: victims received back nearly half of all stolen token funds in the first quarter of this year. Hackers may truly be doing this “for fun,” as a way to exploit and reveal weaknesses in developing blockchain ecosystems, and to earn so-called “white hat” rewards offered by companies in exchange for returning their stolen funds.

Cheat Sheet

Blockchains have long been touted for their security, but hackers have stolen many billions in crypto tokens in the last decade or so.
In 2022, a record $3.8 billion in cryptocurrency was stolen as a result of targeted attacks and hacks.
Many hackers target cryptocurrency exchanges, so-called token bridges that allow users to transfer between blockchain ecosystems and token types, and decentralized finance platforms that may have security weaknesses.
Some of the boldest crypto exchange thefts include the Mt. Gox hacks, which set off the trend of crypto thefts overall, a major heist that drained popular exchange Binance of hundreds of millions of its native token, and an attack on FTX that stole hundreds of millions of dollars of tokens on the same day the exchange filed for bankruptcy.
The largest-ever attack was on a network tied to a popular blockchain gaming platform, Axie Infinity. It resulted in about $625 million worth of tokens lost.
DeFi attacks are proliferating and include hacks of the Poly Network, Wormhole, and more.
Some attackers are exploiting governance procedures to redirect funds. One such attack, 2022’s theft from Beanstalk Farms, involved a hacker taking a loan to buy up governance tokens so that they could insert malicious smart contracts into the ecosystem.
Early 2023 may signal a shift in the landscape of crypto thefts. Not only were thefts down about two-thirds compared with the first quarter of 2022, but an increasing number of hackers are returning the stolen tokens in order to claim a “white hat” reward—in effect a ransom that companies are willing to pay for the safe return of their lost assets.

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Crypto

Cryptocurrency Software Market : Opportunity Analysis and Industry Forecast, 2023-2032

Published

50 mins ago

July 3, 2024

Press Room

Cryptocurrency Software Market : Opportunity Analysis and Industry Forecast, 2023-2032

According to the report published by Allied Market Research, Cryptocurrency Software Market : Opportunity Analysis and Industry Forecast, 2023-2032. The report provides an extensive analysis of changing market dynamics, major segments, value chain, competitive scenario, and regional landscape. This research offers valuable able guidance to leading players, investors, shareholders, and startups in devising strategies for sustainable growth and gaining a competitive edge in the market.

Download Sample Report at: https://www.alliedmarketresearch.com/request-toc-and-sample/A114857

The cryptocurrency software market encompasses all software products and services related to cryptocurrencies. This includes platforms for trading, investing, managing, and securing cryptocurrencies, as well as software for blockchain development, wallet management, mining, and compliance. Key participants in this market include cryptocurrency exchanges, wallet providers, blockchain development platforms, and companies offering security solutions for cryptocurrencies.

The cryptocurrency software market is segmented on the basis of types , application and region.

By Types

● Cloud Based

● Web Based

By Applications

● Large Enterprises

● SMEs

If you have any questions, Please feel free to contact our analyst at: https://www.alliedmarketresearch.com/connect-to-analyst/A114857

By Region

● North America (U.S., Canada, Mexico)

● Europe (France, Germany, Italy, Spain, UK, Russia, Rest of Europe)

● Asia-Pacific (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)

● LAMEA (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)

Key Companies identified in the report are Poloniex, Bitfinex, Kraken, BTCC, Bittrex, Kucoin, LocalBitcoins, Electroneum, Binance, Coinbase, Cryptopia.

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Market Trends are :

DeFi and Decentralized Applications (dApps) Growth:

DeFi Expansion: Decentralized Finance (DeFi) is transforming traditional financial systems by providing decentralized alternatives to banking, lending, and trading services. DeFi platforms utilize smart contracts on blockchain networks, offering users greater control over their assets and reduced reliance on traditional financial intermediaries.

dApps Proliferation: Decentralized applications (dApps) are gaining traction in various sectors, from gaming and social media to supply chain management and real estate. These applications operate on blockchain networks, ensuring transparency, security, and user autonomy.

Increased Focus on Regulatory Compliance and Security:

Regulatory Compliance: With growing governmental scrutiny, cryptocurrency software providers are increasingly focusing on compliance with regulations such as anti-money laundering (AML) and know your customer (KYC) requirements. This trend is driven by the need to build trust and legitimacy in the eyes of regulators and users alike.

Enhanced Security Measures: Security remains a critical concern in the cryptocurrency space due to frequent incidents of hacking and fraud. As a result, there is a heightened emphasis on developing and integrating advanced security features, such as multi-signature wallets, hardware wallets, and biometric authentication, to protect users’ assets and data.

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If you have any special requirements, please let us know and we will offer you the report as per your requirements.

Lastly this report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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AMR launched its user-based online library of reports and company profiles Avenue. An e-access library is accessible from any device anywhere and at any time for entrepreneur’s stakeholder’s researchers and students at universities. With reports on more than 60000 niche markets with data comprising of 600000 pages along with company profiles on more than 12000 firms, Avenue offers access to the entire repository of information through subscriptions. A hassle-free solution to clients’ requirements is complemented with analyst support and customization requests.

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Crypto

Man Invests $10,000 in Cryptocurrency, Earns $3 Million in 30 Minutes

Published

8 hours ago

July 3, 2024

Press Room

Man Invests $10,000 in Cryptocurrency, Earns $3 Million in 30 Minutes

In what can be called the greatest trade of 2024, a cryptocurrency investor put in $10,000 and earned $3 million. The trade was completed in just 30 minutes making the investor turn into a millionaire in the shortest period possible. This is what dreams are made of and the investor turned the dream into reality this month.

Also Read: Which Cryptocurrency Could GTA 6 Integrate in the Game?

Cryptocurrency Investor Turns $10,000 Into $3 Million in Just 30 Minutes

So how did the investor turn $10,000 into $3 million in 30 minutes? Well, the investor took an entry position into BAKED cryptocurrency on July 1, 2024, purchasing 70 Solana (SOL) for under $10,000. The investor swapped the Solana tokens to BAKED and accumulated 82 million tokens.

Also Read: BRICS: Saudi Arabia Makes Massive Oil and Gas Discovery

Just 30 minutes after buying BAKED cryptocurrency, an investor sold it for 21,581 Solana (SOL). This means that the investor made $3 million in the cryptocurrency in less than an hour after purchasing it. Leading on-chain metrics firm Lookonchain was the first to dish out the transaction on the blockchain.

Someone sniped $BAKED and made 21,511 $SOL($3M) in just 30 minutes, a gain of 307x!
How did he do it?
Advertisement

We also found that the team and insiders control 763.8M $BAKED(76.38% of the total supply).
1/ Here is a thread.🧵 pic.twitter.com/KQ16KYGl7t
— Lookonchain (@lookonchain) July 1, 2024

Also Read: Data Breach: US Bank Exposes Customers Name, Acc Number, Date of Birth

However, doubts arise if the investor is an insider or a genuine trader who just got lucky. Investors use the cryptocurrency ‘snipping’ method and buy tokens just hours before it gets listed and open for trading. This gives them the leverage of being a step ahead before other investors begin to purchase the tokens. BAKED saw a listing on the Bitget platform opening the floodgates to new investors.

There are several other stories where cryptocurrency investors just got lucky and made millions in a short period. While these stories are promising, there are only a handful of them that actually made it. The majority of holders have lost money in the markets and only dream of making it big. Luck favors a few while the others mostly face the wrath of the broader cryptocurrency market.

Crypto

Cryptocurrency Titans Bitcoin and Ethereum Poised for Robust July Based on Historical Patterns

Published

15 hours ago

July 2, 2024

Press Room

Cryptocurrency Titans Bitcoin and Ethereum Poised for Robust July Based on Historical Patterns

As tradition guides us in the financial world, history often sheds light on what might be forthcoming. In this context, July has consistently proven to be a favorable juncture for the titans of the cryptocurrency market, Bitcoin and Ethereum. As we gingerly step into July, market experts are observing with keen interest, the patterns of the past, hoping for another lucrative period in the digital currency realm.

Time-honored market pundits from QCP Capital have deduced that over the years, Bitcoin has shown a median yield of 9.6% in July, bearing a consistent pattern of recuperating substantially after a rather lethargic performance in June. This year, following a dip of roughly 10% in its June performance, Bitcoin is set to possibly see an uplift this July, guided by these historical pointers.

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Adding more colors of positivity to this promising picture, David Duong and David Han, two-discerning analysts from Coinbase, have affirmed this trend. They reckon that the expected bonanza of liquidity in July could provide an additional springboard to the market.

June’s downturns have purged the financial market of excess, potentially smoothing the path ahead for more secure and optimistic price shifts. Furthermore, Bitcoin and Ethereum’s trading volumes, which include spot and futures transactions on global exchanges, dwindled from $90 billion in May to $75 billion in June. Market watchers perceive this constriction in trade volumes as laying a sturdier groundwork for the next surge of market activity.

The favorable July seasonality has not been exclusive to leading cryptocurrencies but is also buttressed by broader market dynamics. Analysts including the likes of Ali underscore that recovery patterns ensuing June’s lapses historically denote a “vigorous bounce back” in July performances.

This observation holds notably true for Bitcoin, which has consistently delivered an average return of approximately 8% during this period.

The recent technical analysis of Bitcoin’s price fluctuations also provides credence to the hypothesis for a bullish July. Bitcoin noted a significant upsurge of 2.7% in just the past 24 hours. Now trading at $63,104, Bitcoin has started the month on a strong note. This recent rise has nudged its weekly gains also to 2.7%, echoing an uptick in investor confidence.

However, predictions are not without their hurdles. Factors including macroeconomic influences and regulatory advancements could still steer cryptocurrency prices in a direction contrary to expectations. And while analysts maintain an optimistic outlook based on statistical and historical evidence, the characteristic volatility of the cryptocurrency markets implies that significant deviations from past trends can still transpire.