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Title: Why do hacks still occur? Post by: Queentoshi on September 25, 2023, 09:26:25 PM Why do exchanges and companies that offer bitcoins/crypto related services still have security vulnerability that they get hacked? Are they not supposed to be professionals with securing their system, or have learnt from the experience of other companies that were hacked?
Quote Ronin Network: $625 Million The Largest Cryptocurrency Hacks So Far (https://www.investopedia.com/news/largest-cryptocurrency-hacks-so-far-year/#:~:text=The%20Largest%20Cryptocurrency%20Hacks%20So%20Far%201%20Ronin,...%208%20Bitmart%3A%20%24196%20Million%20...%20More%20items)The largest cryptocurrency hack to date was conducted in March 2022 and targeted the network that supports the popular Axie Infinity blockchain gaming platform. Hackers breached the Ronin Network and made off with around $625 million worth of Ethereum and the USDC stablecoin. The U.S. officials said that a North Korean state-backed hacking collective, Lazarus Group, was linked to the theft. Binance was able to recover $5.8 million of the stolen funds a month later, but it would still be the largest hack in history. Poly Network: $611 Million In August 2021, a lone hacker pounced on a vulnerability in the Poly Network decentralized finance platform and made off with over $600 million. The project’s developers issued an appeal on X (formerly Twitter) for the stolen funds, which included $33 million Tether. The Poly Network then established several addresses for the funds to be returned and the unknown hacker began to cooperate. After only two days, around $300 million had been recovered and it emerged that the hacker had targeted the network “for fun” or as a challenge. FTX: $600 Million In November 2022, FTX, one of the most powerful players in the crypto industry, declared bankruptcy. On the day it filed for Chapter 11 bankruptcy, more than $600 million was stolen from its crypto wallets. Many FTX wallet holders reported $0 balances in their FTX.com and FTX US wallets. The crypto exchange confirmed the hack on its Telegram channel, saying: ''FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don't go on FTX site as it might download Trojans." FTX General Counsel Ryne Miller later tweeted that the crypto exchange was making ''every effort to secure all assets, wherever located." Binance: $570 million In one of the most high-profile attacks in cryptocurrency history, the Binance exchange was hacked for $570 million in October 2022. A cross-chain bridge, BSC Token Hub, was exploited by hackers, resulting in the creation of extra Binance Coins (BNB) and the withdrawal of 2 million BNB tokens. BNB is the native token of the crypto exchange. A bug in a smart contract enabled the hack, highlighting the need for tighter blockchain security. $20.6 billion The amount of cryptocurrency stolen from exchanges and other platforms in 2022. Coincheck: $534 Million In January 2018, the Japanese exchange Coincheck suffered an attack to the tune of $523 million NEM coins valued at about $534 million. The vulnerability was created by a hot wallet, which is a live cryptocurrency wallet and not as safe as an offline cold storage wallet. At the time, the Coincheck hack was larger even than the notorious Mt. Gox hack; NEM Foundation president Lon Wong described it as "the biggest theft in the history of the world." Coincheck was able to survive the hack and continued to operate, despite being bought out a few months later by the Japanese financial services company Monex Group. Mt. Gox: $473 Million The first major crypto hack occurred in 2011 when the crypto exchange Mt. Gox lost 25,000 bitcoins worth approximately $400,000. At that time, the crypto exchange was handling nearly 70% of all bitcoin transactions. The attack didn't stop and Mt. Gox was attacked again in 2014. It lost almost 650,000 of its customers' bitcoins, and around 100,000 of its own. At the time that was 7% of all bitcoins, and worth around $473 million. Initial reasons for the coins' disappearance were unclear, but later evidence showed that the coins were stolen from the company's hot wallet. Wormhole: $325 Million The decentralized finance platform Wormhole was targeted in February 2022, with $325 million taken by hackers. The attack had been made possible by an upgrade to the project’s GitHub repository, which was not then deployed to the live project. The popular cryptocurrency bridge had to plug the hole in the project’s finances after the funds were not recovered. This was also the largest theft that included Solana, one of the rivals to Ethereum's dominance in the worlds of DeFi and NFTs. Up to $47 million was taken in the blockchain's native SOL token. Bitmart: $196 Million December 2021 saw a hack of the Bitmart centralized exchange with losses of $196 million. The hack was first spotted by a security analysis firm, which noted BitMart addresses being drained of their balance. Around $100 million in various cryptocurrencies were funneled via Ethereum, with another $96 million exiting through Binance Smart Chain. All of the tokens were moved to an address labeled by Etherscan as the “BitMart Hacker.'' Nomad Bridge: $190 Million Only one month before the Wintermute breach was a more significant hack of Nomad Bridge, which drained $190 million of the project’s funds. Nomad is a cryptocurrency bridge that lets users swap tokens between blockchains, but those have become the latest target for hackers. That is due to the considerable value of assets they hold and the complexity of the smart contract code on which they run. Nomad Bridge later recovered $36 million of the stolen funds. Beanstalk: $182 Million This hack involved the exploitation of a decentralized finance (DeFi) platform. The attacker used a DeFi product called a “flash loan,” which allows users to borrow large amounts of cryptocurrency for very short periods. After borrowing $1 billion, the hacker took a 67% controlling stake in the project and approved a transfer of funds to their wallet before repaying the loan and disappearing. The entire process of executing the hack took only 13 seconds. Wintermute: $162 Million Wintermute, a leading cryptocurrency market maker, was attacked in September 2022. The project lost around $160 million in a hack, and it made things worse for Wintermute because they owed $200 million to other participants in the market. A 10% bounty was offered by the CEO to the hacker if they returned the funds. Is it not possible for the system to be impregnable? Title: Re: Why do hacks still occur? Post by: Cantsay on September 25, 2023, 09:34:50 PM Quote Is it not possible for the system to be impregnable? The best thing that a company can do and they already have it in place is to hire a cybersecurity expert to help them inspect their systems and also install firewalls do regular security checks to see if there is any unusual activity that might lead to data breach so that they can act fast and put it right. You should note that there’s no perfect code out there, so what you think is safe might have a little vulnerability that is unknown to you that a hacker could use to their advantage and sometimes the attack could be from an employee most especially those that are disgruntled. Title: Re: Why do hacks still occur? Post by: EL MOHA on September 25, 2023, 09:37:53 PM There is no way that anything developed by human can be said to be impregnable, just that the penetration rate of each one differs base on its design and where it is design on.
Concerning exchanges, we all know that most exchanges uses two different storage, one is the cold or offline wallet and the other is hot or online Wallet. It is the hot wallets that normally gets compromised because it is online. The hacker could get access either through collaboration with an insider in the platform or he first hacks the insiders device to get access. Also the hot wallet is online so definitely anything online is possible to be hacked Title: Re: Why do hacks still occur? Post by: _act_ on September 25, 2023, 09:38:28 PM This year alone, if you join DeFi hack and centralized exchanges hack together, they are very many and that is how it has been since years ago.
The main reason for the hack is because centralized exchanges are using hot wallet and hot wallets are easy to be compromised. The reason for DeFi hack which is most common is because they are vulnerable by default. Do not leave coins on centralized exchanges and be careful of DeFi and the so called decentralized exchanges with DeFi. Title: Re: Why do hacks still occur? Post by: Nwada001 on September 25, 2023, 09:41:02 PM Those codes and developments—who did them? (People) the more technology is advancing, the more new discoveries are happening. You will be busy building a security system, and someone else will also be busy building how to break those systems.
The thing is that nothing is above hacking once the vulnerabilities have been discovered. That's it. Hackers are upgrading their tools day after day, and the rate at which we hear about things and financial-related platforms being hacked these days is really alarming. We can never really be careful enough, which is why it's always advisable to always keep our funds safe for ourselves, because the bigger an organisation gets and the higher the funds they have in their possession, the higher their chances of being attacked. Hackers don't go where they are not going to make money; they go for things that will benefit them, and when they hit it, they know they have hit it big. These days, I don't even see security bug bounty programmes where financial firms set up security bug campaigns and reward those who can discover bugs in their system with some price, and they try to fix those bugs before hackers can use them to penetrate the system. Title: Re: Why do hacks still occur? Post by: Abu-Naim on September 25, 2023, 09:55:04 PM Is it not possible for the system to be impregnable? Despite the majority of these exchanges make every effort to keep everything secure, hackers and insiders pose the biggest threat because everyone wants to become rich. Due to the fact that the majority of these exchanges have been compromised, there is no faith in cryptocurrencies. If you investigate the news and the hacking's source, you'll learn that one or more of their team members were either involved in the hacking or were responsible for leaking information that resulted in the attack. Title: Re: Why do hacks still occur? Post by: Churchillvv on September 25, 2023, 10:49:33 PM Why do exchanges and companies that offer bitcoins/crypto related services still have security vulnerability that they get hacked? Are they not supposed to be professionals with securing their system, or have learnt from the experience of other companies that were hacked? Hackers a one of the smartest people in the world but the problem is they decide to put their efforts on the negative paths which causes crypto related service to suffer losses. The harder companies try to upgrade their security systems the harder hackers upgrade a system that can beat that security systems no matter the professional that made the security patch of a company, there is another professional that is making a higher beat for hacks. Vise versa. If there is nothing to hack there will be no hack, because there is funds some where been saved that is why hackers attack most times. Most of the problem companies face on security issues are on the individual biases, most hackers are people who are familiar with the company security systems and knows the in and out of the companies. Most times workers who feel they are under paid for their time and service seems to be the ones who organizes the hack because of either greed or lack of appreciation. If one is not appreciated they might try to appreciate themselves causing harms to others in order to be satisfied. Title: Re: Why do hacks still occur? Post by: Ojima-ojo on September 25, 2023, 10:55:14 PM Can they really defeat the cyber criminals who have high networks connection within the internet and have taken over major exchange and other accounts who falled victim to them, i must say fhat the role of an insider is higly significant in such crimes because i believe that there can never be any hack without an insider or a back door access.
All fhe major hacks that have happen within the recent times have all pointed to security vulnerabilities and at that we have to focus on some neglected facts and factors that have warranted such incidents. Title: Re: Why do hacks still occur? Post by: Saisher on September 25, 2023, 11:00:54 PM Is it not possible for the system to be impregnable? Sometimes it is an inside job, and the HRM or those who recruit should double or triple check the people who are working in their security, there is no perfect security but they can always patch or stop the attack when it happens, their security people should be two steps forward when it comes to security and they should have enough budget to combat security threats, on offline banking some banks are employing former military men to combat bank robbery, on online they should employ people with extensive knowledge on security, security is everything online, you have a good security you have the trust of your users. Title: Re: Why do hacks still occur? Post by: sheenshane on September 25, 2023, 11:15:06 PM Can they really defeat the cyber criminals who have high networks connection within the internet and have taken over major exchange and other accounts who falled victim to them, i must say fhat the role of an insider is higly significant in such crimes because i believe that there can never be any hack without an insider or a back door access. Sometimes we think this especially if the exchange is very well known and has a strong security like Binance but still they encounter hacks to their system but luckily not a major one. Many cyberattacks are executed remotely by skilled hackers who exploit vulnerabilities in systems or use sophisticated techniques to gain unauthorized access. One of the most effective that I have known that until now they've used is social engineering which is scammers often use social engineering tactics to trick users or company staff into revealing their private keys or login credentials. These tactics can be highly effective, even for a strong security company that has a weak staff.IMO, there's nothing safe on the internet not unless you have full control over your assets. Title: Re: Why do hacks still occur? Post by: BitMaxz on September 26, 2023, 12:05:29 AM Since the security system of any exchanges is developed by humans, there is still a chance exchanges can be hacked because it's online and vulnerable to any attacks. Without the hackers, they can't develop a strong security system to defend their exchanges and hackers are always developing.
Each exchange has its unique security method to defend its site against any attacks to assure the safety of your funds on their platforms but there is no guarantee that your funds from exchanges are safe that is why we strongly suggest if you want to hold your funds for the long term you should own a wallet that grants you complete control over your assets. Title: Re: Why do hacks still occur? Post by: BlackBoss_ on September 26, 2023, 12:27:06 AM Why do exchanges and companies that offer bitcoins/crypto related services still have security vulnerability that they get hacked? Are they not supposed to be professionals with securing their system, or have learnt from the experience of other companies that were hacked? They are supposed to create as many new products as possible to catch a current trend in cryptocurrency and blockchain industry. To do that with hurry, they ignore many factors, from product developmental idea to security of their products and platforms.In security, it's very hard to secure it entirely and building a good security system is like you are building a wall but a hacker only need to find a minor leak, broken point on the very long wall, then exploit it. You can build up miles of secured wall but only one weak point can make it collapses because with hackers, it's enough for exploitation. Title: Re: Why do hacks still occur? Post by: mk4 on September 26, 2023, 01:00:25 AM It's just a mix/combination of some/all of these:
1. Complacency a.k.a. "let's do it next time lol" 2. Not being 1 step ahead of hackers 3. The fact that nothing is totally unhackable 4. Incompetence of the security-related coders/auditors This applies both to cryptocurrency platforms, centralized exchanges, or any public platforms in general. Title: Re: Why do hacks still occur? Post by: pooya87 on September 26, 2023, 04:59:57 AM Is it not possible for the system to be impregnable? No, never. All they can do is to make it harder for hackers to get to them and only reduce the risk. Otherwise it is impossible to make any system "impregnable". Just look through the hack news (in general) around the globe; you'll see various hacks happening every day.For example one of the most recent news I saw was a large number of classified US Military, Defense Companies and Satellites, etc. has been hacked years ago and hackers had full access to all that classified information all this time without anybody even knowing! Of course some of the cases you can find are just pure negligence and incompetency, specially some of these "token swap platforms" that are falsely advertised as DEX are just too terrible and too weak to not-get hacked like this. They're just a bunch of code thrown together to create a scam platform to trade scams and make "bets" on shittokens. Title: Re: Why do hacks still occur? Post by: Queentoshi on September 26, 2023, 06:22:02 AM 3. The fact that nothing is totally unhackable. This is very frightening! but these companies can make their security protocol difficult that it is discouraging for hackers to consider hacking right? I think they are not preemptive. Title: Re: Why do hacks still occur? Post by: Odohu on September 26, 2023, 06:23:28 AM I don't see much changing in regards to hacking... which in most cases, is stealing. Thieves will always exist so the best you can do is to protect yourself however best you can. Centralized exchanges are prone to hacks... people look for loopholes and most times there is insider collaboration.
I cannot call the case of FTX a hack rather another form of stealing which is eating money that people entrusted in you. Just be careful out there. Title: Re: Why do hacks still occur? Post by: JunaidAzizi on September 27, 2023, 10:32:46 PM Is it not possible for the system to be impregnable? The hackers do the hacking every time and it is hard to stop them but at least we need to adopt some protective cores. The hacking process is not just going and hacking every exchange instead they go to the exchange and find the weakest point for the access. Hacking will be easier if you can make the stupid staff of that exchange by making them some money and in their greed they make a mistake and the hackers take benefits of the moment. Another way is that when the exchange makes a security system for their exchange, at that time they leave a back door or weak point for themselves which they use when hacking that exchange. The second one is my own thought maybe wrong but I think this will occur mostly and it's a very easy method for hacking.Title: Re: Why do hacks still occur? Post by: passwordnow on September 27, 2023, 10:40:09 PM Why do exchanges and companies that offer bitcoins/crypto related services still have security vulnerability that they get hacked? Are they not supposed to be professionals with securing their system, or have learnt from the experience of other companies that were hacked? Yes, they hire professionals that will protect their systems from intruders. But whether you hire the strongest ones, the technology that we're having today is also improving. The hackers are also learning something new and they are also continually learning the potential loophole from these systems that are protected. I am sure that they have learned from the past experiences of the other exchanges or services that have been hack by lots of money. Even in real world, banks are also high in security but they cannot escape these hackers.Is it not possible for the system to be impregnable? There is no perfect system.This is a good discussion about such: https://www.quora.com/Is-there-ever-a-perfect-system Title: Re: Why do hacks still occur? Post by: dansus021 on September 28, 2023, 12:53:04 AM There are two theories
The first theory is they actually have a good team of professionals to secure the exchange system. But the technology keep fast moving forward so do the hacker so they try to find the vulnerabilities on the system, in fact, white hacker and bounty hunter get paid to find a bug. The second theory the exchange didn't get hacked at all tho they only wanted to exit scam but this theory only a conspiracy theory hahahh but anything could be happen right? Title: Re: Why do hacks still occur? Post by: pooya87 on September 28, 2023, 04:58:52 AM There are two theories These are more like different categories rather than different theories.The first theory is they actually have a good team of professionals to secure the exchange system. But the technology keep fast moving forward so do the hacker so they try to find the variabilities on the system, in fact, white hacker and bounty hunter get paid to find a bug. The second theory the exchange didn't get hacked at all tho they only wanted to exit scam but this theory only a conspiracy theory hahahh but anything could be happen right? When we say "exchanges" we are talking a bout many different companies, for example something like Yobit is different from Coinbase! The former is a shady business and the later is a registered and regulated company. So it is not a "conspiracy theory" when we say some exchanges scammed their users by lying to them about being hacked. There are actual cases of this happening. There are also other cases where despite all the effort the exchange puts into securing their system, they still get hacked. Title: Re: Why do hacks still occur? Post by: OcTradism on September 28, 2023, 05:16:14 AM The first theory is they actually have a good team of professionals to secure the exchange system. But the technology keep fast moving forward so do the hacker so they try to find the vulnerabilities on the system, in fact, white hacker and bounty hunter get paid to find a bug. As a business, they can not blame on their business growth (that is too speedy) for their failure to secure their platform and protect their customers' accounts and funds. Big or small business, they always are responsible for security system on their platform, first to protect their platform, second to protect their customers, lastly to maintain chance to scale up their business in future.If a platform fails to do it, it is their failure and customers will walk away, find other alternatives that are abundant enough to choose. Quote The second theory the exchange didn't get hacked at all tho they only wanted to exit scam but this theory only a conspiracy theory hahahh but anything could be happen right? Scam exits are the worst scenarios for people who store their coins and money in online accounts.Reminder: do not keep your money in online accounts (https://bitcointalk.org/index.php?topic=5421039.0) Some history of exchange graveyards (hacks, scam exits). Exchange graveyard (https://www.cryptowisser.com/exchange-graveyard/) Hacked Exchanges since 2011 (https://bitcointalk.org/index.php?topic=5090869.0) Report on Crypto Exchange Hacks (https://cointelegraph.com/magazine/crypto-exchange-hacks/) But people as individual customers can secure their accounts and funds by learning and having better practice. Good topics on security and privacy (https://bitcointalk.org/index.php?topic=5239098.0) Title: Re: Why do hacks still occur? Post by: crwth on September 28, 2023, 05:22:38 AM It's like asking why people make mistakes and why people innovate stuff. It's when people want to have easy money and then they are trying their best to get into a certain system. That system is created by people and that can be studied and maybe put to the test by analyzing and finding a loophole then hacking can happen.
There are two sides, the hacker and the hackee. A hacker always finds ways to get inside the system and takes advantage of certain bug or something then it can happen. The hackee or the target will try and find bugs and exploits that could prevent the hackers to get into the system. That's just how it works. There's nothing "impenetrable" I believe. As long as someone is trying, it can be. It's just that it would take time for sure. Title: Re: Why do hacks still occur? Post by: zaim7413 on September 28, 2023, 06:24:52 AM Hacking is still the biggest problem in the digital era, anyone can become a victim of hackers including several well-known crypto exchange platforms, government agencies and there are also several cases of internal losses due to hacker attacks. Incidents after incidents of hacker crimes need to be anticipated by choosing a safer storage location. You must manage your own assets to avoid cases that ever occur.
Behind every hack that has occurred there is certainly a good side, the platforms affected by the hack will immediately evaluate the vulnerabilities that exist on their platform. It also needs to be underlined, as new technology develops on the Internet, hackers will find new ways to penetrate it. So every individual who is involved in the crypto sector must be careful in safeguarding their assets. Title: Re: Why do hacks still occur? Post by: tabas on September 28, 2023, 06:42:47 AM 3. The fact that nothing is totally unhackable. This is very frightening! but these companies can make their security protocol difficult that it is discouraging for hackers to consider hacking right? I think they are not preemptive. Title: Re: Why do hacks still occur? Post by: Fiatless on September 28, 2023, 06:44:14 AM Is it not possible for the system to be impregnable? Some hacks are carried out by former employees of these exchanges because they know some loopholes in the security system. In some cases, these hackers work with insiders who them access or expose some security breach in the system. Like in the case of the FTX hack many blockchain experts suspected that it was done by a high-level insider. So we might never see the end of these hacks because greed and selfishness will always exist. Crypto firms should change their security system when a staff in such a department resigns. It will not also be out of place for firms to work with more than one security system or provider. It will be difficult for these criminals to deal with two security layers than one. Title: Re: Why do hacks still occur? Post by: Outhue on September 28, 2023, 06:51:40 AM Hire all the best cyber experts in the world, bribe many hackers to work for you to prevent hack attacks and so on, there will still be some vulnerability somewhere and those hackers will be the ones finding it first.
There is nothing anyone can do to prevent hacks from happening, the only solution left is to make things harder and more complicated for hackers to find doors into your security system, make it even tougher than it was yesterday. Be one step at least ahead of hackers, this is the solution and also make sure that as a business runner, you have collateral funds available, so that your business won't face its demise and your customers will still trust you. Maybe in the future, a solution may occur that will make stolen funds by hackers from cryptic exchnages impossible to cater away with, but right now it's not the case. Title: Re: Why do hacks still occur? Post by: tech30338 on September 28, 2023, 07:36:25 AM Why do exchanges and companies that offer bitcoins/crypto related services still have security vulnerability that they get hacked? Are they not supposed to be professionals with securing their system, or have learnt from the experience of other companies that were hacked? All securities have a weakness the only question from the securing side is how will they react once those vulnerabilities are found, and on the side of the hackers is how fast they are penetrating those weaknesses in the security, this is the reason why I think everything has logged so that you know what is happening, once you go in public, for example, a certain website a hacker will not stop attacking that site, there is were the security build or setup comes in, this is why there is a feature when a certain ip try to access multiple times with a wrong credentials they are block etc.Quote Ronin Network: $625 Million The Largest Cryptocurrency Hacks So Far (https://www.investopedia.com/news/largest-cryptocurrency-hacks-so-far-year/#:~:text=The%20Largest%20Cryptocurrency%20Hacks%20So%20Far%201%20Ronin,...%208%20Bitmart%3A%20%24196%20Million%20...%20More%20items)The largest cryptocurrency hack to date was conducted in March 2022 and targeted the network that supports the popular Axie Infinity blockchain gaming platform. Hackers breached the Ronin Network and made off with around $625 million worth of Ethereum and the USDC stablecoin. The U.S. officials said that a North Korean state-backed hacking collective, Lazarus Group, was linked to the theft. Binance was able to recover $5.8 million of the stolen funds a month later, but it would still be the largest hack in history. Poly Network: $611 Million In August 2021, a lone hacker pounced on a vulnerability in the Poly Network decentralized finance platform and made off with over $600 million. The project’s developers issued an appeal on X (formerly Twitter) for the stolen funds, which included $33 million Tether. The Poly Network then established several addresses for the funds to be returned and the unknown hacker began to cooperate. After only two days, around $300 million had been recovered and it emerged that the hacker had targeted the network “for fun” or as a challenge. FTX: $600 Million In November 2022, FTX, one of the most powerful players in the crypto industry, declared bankruptcy. On the day it filed for Chapter 11 bankruptcy, more than $600 million was stolen from its crypto wallets. Many FTX wallet holders reported $0 balances in their FTX.com and FTX US wallets. The crypto exchange confirmed the hack on its Telegram channel, saying: ''FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don't go on FTX site as it might download Trojans." FTX General Counsel Ryne Miller later tweeted that the crypto exchange was making ''every effort to secure all assets, wherever located." Binance: $570 million In one of the most high-profile attacks in cryptocurrency history, the Binance exchange was hacked for $570 million in October 2022. A cross-chain bridge, BSC Token Hub, was exploited by hackers, resulting in the creation of extra Binance Coins (BNB) and the withdrawal of 2 million BNB tokens. BNB is the native token of the crypto exchange. A bug in a smart contract enabled the hack, highlighting the need for tighter blockchain security. $20.6 billion The amount of cryptocurrency stolen from exchanges and other platforms in 2022. Coincheck: $534 Million In January 2018, the Japanese exchange Coincheck suffered an attack to the tune of $523 million NEM coins valued at about $534 million. The vulnerability was created by a hot wallet, which is a live cryptocurrency wallet and not as safe as an offline cold storage wallet. At the time, the Coincheck hack was larger even than the notorious Mt. Gox hack; NEM Foundation president Lon Wong described it as "the biggest theft in the history of the world." Coincheck was able to survive the hack and continued to operate, despite being bought out a few months later by the Japanese financial services company Monex Group. Mt. Gox: $473 Million The first major crypto hack occurred in 2011 when the crypto exchange Mt. Gox lost 25,000 bitcoins worth approximately $400,000. At that time, the crypto exchange was handling nearly 70% of all bitcoin transactions. The attack didn't stop and Mt. Gox was attacked again in 2014. It lost almost 650,000 of its customers' bitcoins, and around 100,000 of its own. At the time that was 7% of all bitcoins, and worth around $473 million. Initial reasons for the coins' disappearance were unclear, but later evidence showed that the coins were stolen from the company's hot wallet. Wormhole: $325 Million The decentralized finance platform Wormhole was targeted in February 2022, with $325 million taken by hackers. The attack had been made possible by an upgrade to the project’s GitHub repository, which was not then deployed to the live project. The popular cryptocurrency bridge had to plug the hole in the project’s finances after the funds were not recovered. This was also the largest theft that included Solana, one of the rivals to Ethereum's dominance in the worlds of DeFi and NFTs. Up to $47 million was taken in the blockchain's native SOL token. Bitmart: $196 Million December 2021 saw a hack of the Bitmart centralized exchange with losses of $196 million. The hack was first spotted by a security analysis firm, which noted BitMart addresses being drained of their balance. Around $100 million in various cryptocurrencies were funneled via Ethereum, with another $96 million exiting through Binance Smart Chain. All of the tokens were moved to an address labeled by Etherscan as the “BitMart Hacker.'' Nomad Bridge: $190 Million Only one month before the Wintermute breach was a more significant hack of Nomad Bridge, which drained $190 million of the project’s funds. Nomad is a cryptocurrency bridge that lets users swap tokens between blockchains, but those have become the latest target for hackers. That is due to the considerable value of assets they hold and the complexity of the smart contract code on which they run. Nomad Bridge later recovered $36 million of the stolen funds. Beanstalk: $182 Million This hack involved the exploitation of a decentralized finance (DeFi) platform. The attacker used a DeFi product called a “flash loan,” which allows users to borrow large amounts of cryptocurrency for very short periods. After borrowing $1 billion, the hacker took a 67% controlling stake in the project and approved a transfer of funds to their wallet before repaying the loan and disappearing. The entire process of executing the hack took only 13 seconds. Wintermute: $162 Million Wintermute, a leading cryptocurrency market maker, was attacked in September 2022. The project lost around $160 million in a hack, and it made things worse for Wintermute because they owed $200 million to other participants in the market. A 10% bounty was offered by the CEO to the hacker if they returned the funds. Is it not possible for the system to be impregnable? Title: Re: Why do hacks still occur? Post by: LogitechMouse on September 28, 2023, 08:13:16 AM 3. The fact that nothing is totally unhackable. This is very frightening! but these companies can make their security protocol difficult that it is discouraging for hackers to consider hacking right? I think they are not preemptive. If hackers find the project too hard to hack even though they're experts, they will find another one, and another one, and another one until they find a prey where the security can easily be breached. Like @mk4 said, some of the projects have developers that are complacent enough that they're focusing more on the marketing than the security thus, they're being hacked. I still remember the hacking incident of Ronin. I believe that they became complacent because they're becoming more, and more popular at that time, that they forgot to increase their security. It's frightening yes, but we can do something about it. As to your question if it's possible for the system to be impregnable? No, but with AI, we might see a difference. We don't know since it's too early to tell. Title: Re: Why do hacks still occur? Post by: knowngunman on September 28, 2023, 10:01:37 AM If hackers find the project too hard to hack even though they're experts, they will find another one, and another one, and another one until they find a prey where the security can easily be breached. This is just the fact. The more the technology is advancing in security system, the more sophisticated the hackers becomes. Hackers are always observant, looking for a slight way for the victim to slack and take the advantage. The only way to improve the security system or to prevent the hackers is frequent upgrade and constant monitoring by the company's security experts. Although, some of the security experts can not be trusted because they also compromise or accomplice in the hacking process and pretended to be innocent. This is one reason why banks use to relief their staffs when there's security breach or attacks either in physical or digital. I think the reason for this increment of hacking is due to traceless nature of crypto in my opinion. Title: Re: Why do hacks still occur? Post by: Questat on September 28, 2023, 12:13:05 PM This happens because they underestimate hackers not knowing their capabilities and expertise in doing this. Even if they know (exchanges) they are still prone to such things as these hackers will holes in the security system and get through it. This will give us an idea of why we should not use an exchange wallet as our storage wallet. And no matter what they do to enhance their security level, hackers will also be spending their time going beyond and gaining access to their keys.
Title: Re: Why do hacks still occur? Post by: Adbitco on September 28, 2023, 12:19:28 PM There are two theories These are more like different categories rather than different theories.The first theory is they actually have a good team of professionals to secure the exchange system. But the technology keep fast moving forward so do the hacker so they try to find the variabilities on the system, in fact, white hacker and bounty hunter get paid to find a bug. The second theory the exchange didn't get hacked at all tho they only wanted to exit scam but this theory only a conspiracy theory hahahh but anything could be happen right? When we say "exchanges" we are talking a bout many different companies, for example something like Yobit is different from Coinbase! The former is a shady business and the later is a registered and regulated company. So it is not a "conspiracy theory" when we say some exchanges scammed their users by lying to them about being hacked. There are actual cases of this happening. There are also other cases where despite all the effort the exchange puts into securing their system, they still get hacked. When exchange got hacked do we really know they got hacked what are the things to show exchanges are telling us the truth about their being backed, and again does a regulated or registered exchange provides missing funds or stolen funds if there is a function like this then I believe they will increase their security majors infact it would be their topmost priorities to safeguard investors funds that is in their custody if there were to be a compliance or term that guides investor through they wouldn't allow any shady hack to happen. Title: Re: Why do hacks still occur? Post by: Razmirraz on September 28, 2023, 01:43:26 PM Can they really defeat the cyber criminals who have high networks connection within the internet and have taken over major exchange and other accounts who falled victim to them, i must say fhat the role of an insider is higly significant in such crimes because i believe that there can never be any hack without an insider or a back door access. Cybercriminals are very difficult to overcome or defeat, their ability is extraordinary in infiltrating the targeted network and then taking control of the targeted company. Hackers once controlled the FBI's network and email servers. In November 2021, even though the perpetrators may be from different groups, their hacking skills are very difficult to stop. All fhe major hacks that have happen within the recent times have all pointed to security vulnerabilities and at that we have to focus on some neglected facts and factors that have warranted such incidents. The role of insiders may be related to the hacking, they deliberately leak data for personal gain. This incident has happened several times on different exchanges, hackers have started targeting crypto exchanges because every time they succeed they can get large amounts of money. Crypto players must be more careful in choosing where to store their assets so they don't become victims of hacking. Title: Re: Why do hacks still occur? Post by: pawanjain on September 28, 2023, 04:21:10 PM As long as we are using computers/mobiles or lets say any machines, they will be hackable because there is no perfect code out there.
Even the best code can be vulnerable is an expert tests it. Every system has bugs and only the master minds can find it and exploit it. Besides that, there is a shortage of cyber security employees which is why companies fall prey to such attacks. Title: Re: Why do hacks still occur? Post by: mvdheuvel1983 on September 28, 2023, 04:23:48 PM Why do exchanges and companies that offer bitcoins/crypto related services still have security vulnerability that they get hacked? Are they not supposed to be professionals with securing their system, or have learnt from the experience of other companies that were hacked? So long as security systems are not made by God, they will always be vulnerable to hacks and other security attacks. Hackers are getting smarter and more sophisticated. They are relentless. Some hackers even do it for the fun of it as a sort of ego boost. Is it not possible for the system to be impregnable? I don't know how feasible this is but if these exchanges can have like a competition where hackers would try to break into their security infrastructure and then there will be a price for whoever is successful. This would help them to test their security structure and help them improve. Title: Re: Why do hacks still occur? Post by: CryptSafe on September 28, 2023, 04:40:27 PM There is every possibility that hacks do not just occur like that. There must be a preplanned scheme by the hackers which definitely in most cases have an insider as a source of information. Most hacks are not what people think they are as some of them were just to distract and confuse investors and holders not to think otherwise.
One thing we should know is that as long as this world continue to exist, there must be some categories of humans out there that are just good at stealing from other peoples resources. Hackers take advantage of loopholes in the security mechanism of exchanges, casinos and others as the case maybe. As a Crypto organisations, there must be a constant site update, upgrade and maintenance so as to make it very narrow for any such incidence out there . Title: Re: Why do hacks still occur? Post by: CryptopreneurBrainboss on September 28, 2023, 06:07:14 PM Why do exchanges and companies that offer bitcoins/crypto related services still have security vulnerability that they get hacked? Are they not supposed to be professionals with securing their system, or have learnt from the experience of other companies that were hacked? There's no professionalism in the altcoins and exchange sector, all they're after is power and market dominance of whatever is left from Bitcoin domination because who controls the market makes the most profits and it's profit hurting they're all after that's why there are lots of inferior projects getting launched but since we're in an unregulated market, nobody is doing anything. Most exchanges/projects that has millions passing through them daily shoudn't have had 1 cent in their market cap because they're just duplicate of already existing ideas with little to no improvement made. We'll keep having hack incident because most projects in the industry are built on a faulty centralized system (server) and instead of allocating money for security upgrades, money are been allocated for marketing to create buzz and hype around the project or platforms to attract more customers for them to make money. The second theory the exchange didn't get hacked at all tho they only wanted to exit scam but this theory only a conspiracy theory hahahh but anything could be happen right? This is actually happenings because the rate at which projects are getting hacked and disappearing out of the market only points towards inside job and exit scam schemes. Many projects has been doing this and many more will do it in the future that's why we're been discourage from trusting these project because they can crash at any moment and nothing will be done about it. Alot of scammers has rugged pulled their scam tokens and disappear with investors money and nothing can be done. Exchanges have done the same with the excuse of been hacked so it's not a conspiracy theory but it's something that's actually happening and the best way to protect ourselves is to stay away from this projects with too good to be true promises. Title: Re: Why do hacks still occur? Post by: edmundduke on September 28, 2023, 06:58:40 PM Why do exchanges and companies that offer bitcoins/crypto related services still have security vulnerability that they get hacked? Are they not supposed to be professionals with securing their system, or have learnt from the experience of other companies that were hacked? Is it not possible for the system to be impregnable? Actually there are WAY less hacks, BUT the hacks are much larger. Back in the hacks were almost a daily occurance, or at the very least a weekly thing. BUT since the amounts were much smaller, we did not even hear about them. Now that the hacks are much larger, they are way more visible. As for the cause. Some them are most likely insider jobs. As for actual hacks, a huge factor is the NK state effect. It has been revealed that NK state hackers have been behind many of the largest heist. They are untouchable. Even if you find out who did it, you cant go after them. Title: Re: Why do hacks still occur? Post by: BitDane on September 28, 2023, 07:01:31 PM There are two theories The first theory is they actually have a good team of professionals to secure the exchange system. But the technology keep fast moving forward so do the hacker so they try to find the vulnerabilities on the system, in fact, white hacker and bounty hunter get paid to find a bug. We can't call the security team a good team when their task to secure the platform failed. If they are a good team no matter how fast moving the technology is, they are able to cope up with it and at least is one step farther than hackers. The second theory the exchange didn't get hacked at all tho they only wanted to exit scam but this theory only a conspiracy theory hahahh but anything could be happen right? It is very possible that the hack can be an inside job. One of the security staff maybe plan the hack and leak out the vulnerabilities of the platform security so that hackers can easily bypass the security and exploit the platform fund. Exit scam through hacking incident is also possible since users will have a hard time finding out that the project owner themselves hack their own platform. |