Cryptocurrencies have emerged as a popular asset class in the digital age. However, the lack of regulation and security measures in the cryptocurrency space has made it vulnerable to hacking and theft. In this article, we will discuss the top 5 biggest cryptocurrency thefts that have occurred in history. Mt. Gox – $460 millionMt. Gox was a Japanese cryptocurrency exchange that was established in 2010. At its peak, it handled over 70% of all bitcoin transactions. However, in 2014, the exchange suffered a massive hack that resulted in the theft of 850,000 bitcoins worth $460 million at the time. The hack was so significant that it led to the bankruptcy of the exchange. The theft has been attributed to a security flaw in the exchange’s software, which allowed hackers to withdraw the funds.
Bitfinex – $72 millionBitfinex is a Hong Kong-based cryptocurrency exchange that was established in 2012. In 2016, the exchange suffered a hack that resulted in the theft of 120,000 bitcoins worth $72 million at the time. The hackers exploited a vulnerability in the exchange’s multisignature wallets, which allowed them to steal the funds. Following the hack, Bitfinex issued tokens to its customers to represent their lost funds. These tokens were later redeemed at their original value, and Bitfinex repaid its customers over time. Coincheck – $530 millionCoincheck is a Japanese cryptocurrency exchange that was established in 2014.
In 2018, the exchange suffered a hack that resulted in the theft of 500 million NEM tokens worth $530 million at the time. The hack was attributed to a lack of security measures, as the exchange had stored the tokens in a hot wallet that was connected to the internet. Following the hack, Coincheck reimbursed its customers for the stolen funds. Binance – $40 millionBinance is a cryptocurrency exchange that was established in 2017. In 2019, the exchange suffered a hack that resulted in the theft of 7,000 bitcoins worth $40 million at the time. The hackers exploited a vulnerability in the exchange’s application programming interface (API) to steal the funds.
Following the hack, Binance reimbursed its customers for the stolen funds and implemented new security measures to prevent future hacks. DAO – $70 millionDAO, short for Decentralized Autonomous Organization, was a decentralized venture capital fund that was established on the Ethereum blockchain in 2016. However, in the same year, the DAO suffered a hack that resulted in the theft of 3. 6 million ether worth $70 million at the time. The hackers exploited a vulnerability in the DAO’s smart contract, which allowed them to transfer the funds to a subsidiary account. Following the hack, the Ethereum community initiated a hard fork to recover the stolen funds. However, this led to a split in the community, with some members opposing the fork. In conclusion, the cryptocurrency space is still in its early stages of development, and security measures are still evolving. The above-listed cryptocurrency thefts highlight the need for better security measures and regulations in the cryptocurrency space. As investors, it is essential to be aware of the risks associated with investing in cryptocurrencies and to take appropriate precautions to safeguard our investments.