Let us discuss on hacked exchanges

[Charles-Tim]

This is what happens when the creators of some exchanges are the same users asking on a forum how much it costs to have the cheapest one set up. It's a shame that so many non-popular exchanges out there never care about even the most essential security advices.

I do not think this is the case, although some exchanges could have been hacked due to low cost set up but if you take a look at the hacked exchanges, binance, upbit, polonix, shapeshift, bitfinex and many other popular and strong exchanges that are even highly rated have been hacked before. So, some were set up with high cost but still vulnerable to hackers. Normally these exchanges are online, and nothing about them is stored offline, including the coins and the kyc, are all stored online, that is why they are vulnerable to hackers. And it is advisable to just trade on them and move back your coin to offline wallet securely irrespective of the exchange you are using.

[Onuohakk]

only have of the year, crypto fraudsters score $1.3 billion in illicit funds in 2020 alone
If the criminals don’t let up, 2020 is set to be the second-highest year for crypto-crime on record
This fraudsters are using this pandemic as an avenue of defrauding people of ventilators

[Negotiation]

The number of scams is increasing due to the increase in the price of Bitcoin They are using various strategies to scam That is why we have to do a good analysis before exchanging. KYC's sites are hacked more when exchanging. But binance is much better You don't have to kyc here No hacker will be able to hack easily if you have to keep the keys well before exchanging them on other sites except trusted sites The number of scams this year is higher than in other years.

[GazetaBitcoin]

2017

December – NiceHash – 4,736 BTC

This entry can be deleted, as NiceHash is not an exchange, but a market for hash power. If you list other entities besides exchanges, you can also add hacked wallets. For example Parity Wallet lost in November 2017 210M USD from users' funds, 180M being rescued and returned by some white hat hackers.

Besides, you can add this to your list:
- 2014 July – Cryptsy – 13,000 BTC & 300,000 LTC
- 2018 February – Coinbin – Unknown amount of stolen money.

[akirasendo17]

Hacking exchanges are almost normal these days
and yes this might be an inside job, but we can't deny how good these hackers
they can scan the web and look for vulnerabilities, they can send file or email
to someone with an attachment or virus that can take down a firewall, and then
pretend to be someone in the network, but the most interesting thing to me is
of all the hacking from the years in the past why are they not improving security
measures, making daily or weekly maintenance, they may lessen the probability
of being hack.

[CryptopreneurBrainboss]

Gatehub. I registered an account in my name on September 28, 2017.

Sorry for your lost seems they're on the list of hacked account and I doubt they are still functional. I just wonder why we patronize anyhow exchanges, I have never heard of this exchanges until now. Currently the decentralized swap-liked exchange are those picking the interest of the community and many are existing scam with Investors funds and also getting expioted for bug. Funny as new ones are popping up daily and still getting volumes even without proper audit haven't been done.

OP seems you missed the Kucoin hack that the hacker went away with about $150million although there're reports of the hacker stealing more than the reported stolen funds.

edit: Oops, just noticed you haven't updated this thread in a long time. Hope you don't mind keeping us updated.

[Cadaver20]

2020
February – Altsbit – 6,929 BTC, 23,210 ETH, 3,924,082 ARRR, 414,154 VRSC & 1,066 KMD

There are two more exchange hacked in 2020.
1. KuCoin exchange.
2. Eterbase exchange. Here is the official news from Eterbase https://t.me/eterbasenews/639
You can add this to the OP.

Also i found a similar topic in Alternate cryptocurrencies section.
You can check this topic [Updated] List of cryptocurrency exchange hacks by CryptoYar.

[CryptocurencyKing]

During most hack, cryptocurrencies were stolen while few stole users login details.

If the users' login details were used to stole coins then it's not the platform that has been hacked it's just the user account (and his/her coins) and that makes a big difference. Hackers don't use users' accounts to then hack the platform's system.

Good point. Because, having hacked an exchange, of what use will it be going through tons of individual wallets instead of just transferring the available individual coin balance on the exchange. It would be less work and less time consuming but then, these hackers are really a pain in the a** .

There are many exchanges that has been hacked in the past

It happens every six month period, we're used to it...

Having the periodicity in mind, two questions comes to my mind.
1. Isn't this some insider job?
2. Could it really be that these hackers are distinct individuals or within the corporation if any that is supposed to ensure the security of exchanges, should it be that exchanges are registered?
3. Would you still conduct business or stock some amount of coin on an exchange with a previously hacked history despite the modifications done on the exchange?

[Lhaine]

2020
February – Altsbit – 6,929 BTC, 23,210 ETH, 3,924,082 ARRR, 414,154 VRSC & 1,066 KMD

There are two more exchange hacked in 2020.
1. KuCoin exchange.
2. Eterbase exchange. Here is the official news from Eterbase https://t.me/eterbasenews/639
You can add this to the OP.

Also i found a similar topic in Alternate cryptocurrencies section.
You can check this topic [Updated] List of cryptocurrency exchange hacks by CryptoYar.

They are almost have the same list so I don't think we need another thread for this one , unless the link you given is not updated which I think is not.

1. Isn't this some insider job?

Other hacking incident is inside job or the owner run it and then told to users that they are hacked which is not. Other is real hacking that's why exchange always taking a move how to have it back or by tracing the address of hackers.

[Krislaw]

Hackers are always targeting big exchanges. Reason why it's risky to leave keep funds on exchanges. Even email and password getting exposed is bad just like the coinmama exchange hack that happened. Do not use same password for your email and exchange account. Always use different password. Enable extra layers of security on your email and keep your exchange secured too.

[skarais]

Hackers are always targeting big exchanges. Reason why it's risky to leave keep funds on exchanges. Even email and password getting exposed is bad just like the coinmama exchange hack that happened. Do not use same password for your email and exchange account. Always use different password. Enable extra layers of security on your email and keep your exchange secured too.

Of course we always have to keep the exchange account secure. But if the exchange is hacked then I think the hacker will drain the asset there without having to hack our account. What good is it if we can properly maintain and practice account security if the security system on the exchange can be breached by hacker.
In my opinion, beside being user, the exchange must also improve a good security system so that trader are always safe in carrying out trading activities there.


I have a question, can hacked bitcoin be frozen and the wallet marked as hacking ?

[joniboini]

I have a question, can hacked bitcoin be frozen and the wallet marked as hacking ?

On the protocol level, it is not possible afaik. But some services (usually centralized/third-party services) can develop such tools. Exchanges will then use this database and block the account related to that address when they detect a deposit coming from them. It is not new, most exchanges already do this.

[DrG]

You could put the ETH hack the resulted in the ETH-ETC separation as a hack as those coins were more or less centralized to the DAO exchange. Also BTCe was seized by government agencies and those coins were not returned to their owners I believe, so I would call that a government sponsored hack

Then there was good old Trendon Shavers Bitcoin Savings and Trust ponzi - not an exchange per say but it was most certainly centralized.

[FACE 2 FACE]

Keeping your funds on the exchange is always a risk. But sometimes this is a compulsory measure, because otherwise we may lose an opportunity to buy or sell at the right time.

In general, I am very surprised why large insurance companies have not yet developed sufficiently transparent and simple service packages for users of cryptocurrency exchanges.

Surely everyone would be much calmer if we could officially insure own deposit, which is on the exchange. This would solve a huge number of problems at once.