Reviewing Major Crypto Hacks, What Happened and Why?

Cybercrime

Crypto hacks have become increasingly common, and the cybersecurity industry can’t keep up. To prevent such attacks from happening again in the future, we need to go over some of the biggest crypto hacks to date and figure out exactly what went wrong.

Wormhole

Wormhole is a DeFi platform that connects other DeFi platforms, allowing users to trade cryptocurrency and other assets across blockchains. Unfortunately, in 2021, the platform was hacked, and cyber criminals stole almost $325 million.

The cause of the crypto hack was human error. An employee at Wormhole posted on GitHub about a bug that hadn’t been fixed yet. Unfortunately, the hackers were able to exploit the bug before it could be patched out.

Mt. Gox

In 2014, Tokyo-based crypto exchange, Mt. Gox, suffered a hack when cyber criminals flooded the exchange with fake coins. The attack allowed the hackers to steal $615 million. Following the crypto hack, the exchange became defunct.

Coincheck Inc.

In 2018, Coincheck Inc. was hacked, and $500 million worth of cryptocurrency was stolen. The hack occurred because Coincheck kept customer assets in hot wallets connected to external networks. This is just one example of how crypto experts recommend using cold wallets.

Ronin

Ronin is a blockchain platform hosted on Ethereum; it supports Axie Infinity, a popular blockchain game. Earlier this year, Ronin was hacked, and $600 Million was stolen from the platform. The hack occurred after hackers gained backdoor access to the platform, compromising its validator nodes.

Poly Network

The smart contract platform Poly Network was hacked in August of 2021, and $611 million was stolen. In a strange turn of events, however, the hacker eventually returned all the money, claiming that he was only trying to expose a flaw in Poly Network’s system.

What We’ve Learned

New innovations in cybersecurity are working to combat hacks and data breaches in the crypto industry. However, the reality is that these technological advances won’t accomplish much until we can mitigate human error. Therefore, people need to learn how to keep themselves and their crypto assets safe on the internet, regardless of what innovations may enter the market.

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