In 2018, there was a $1.7 billion loss in the digital currency sector due to theft. The previous year saw a total loss of $1.2 billion within the first quarter. Among the latest cryptocurrency hacks, is the Bithumb exchange attack, which resulted in the loss of digital tokens worth $30 million. It was the most significant theft in the virtual currency world in the recent past. Unfortunately, it is just one of the many that have affected the industry during the last few years.
With the proliferation of digital currency and sophistication of exchanges, fraudulent behaviors continue to prevail. Theft cases and hacks have continued to happen despite the proliferation of security systems. When it comes to security matters, VPNs have played a major role in the online world. According to a review blog, VPNs are designed to eliminate cases of DNS leaks and mask users from potential security breaches. People who use cryptocurrency have to utilize the security offered by VPNs.
Information from VPNTesting.com reveals that VPNs work by encrypting data from your device and shielding it from IP address leaks. Such measures are meant to protect clients from online attacks. The attack on Bithumb proves that no one is safe, even the biggest industry players. This article highlights a few of the biggest virtual currency hacks in recent times.
Bithumb has suffered a massive blow through the exchange. However, it promised its clients that they would receive compensation for the lost coins. Bithumb assured customers that they would be no effect on their wallets due to the attack. In regards to trade volumes, Bithumb was ranked as the sixth biggest exchange worldwide. However, after the hackers’ incident, it plunged to the tenth position. The hackers focused on the hot wallet of the exchange. The hot wallet is a storage system that is less secure compared to a cold wallet mechanism.
Before Bithumb, Coinrail, a rival exchange in South Korea, was hacked one week before the attack on Bithumb. At Coinrail, the hackers got away with digital currency valued at $37.2 million. Other stolen items included bulk tokens of Aston and Pundi X coins. Following the aftermath of this hack, Bitcoin lost approximately eleven percent of its aggregate value. However, the effect of this attack on the fluctuating Bitcoin value remains unclear. Coinrail ceased cryptocurrency trading momentarily to assist investigators to get to the bottom of it. The exchange also used this time to repair the damage resulting from this security breach.
In 2018, Coincheck, a Japanese exchange, was attacked by hackers who took NEM coins worth roughly $534 million. This attack was bigger than the infamous Mt. Gox hack. Lon Wong, the president of the NEM Foundation, referred to it as the largest theft of all time. However, Coincheck managed to get over the attack and proceeded with operations.
Hackers attacked BitGrail, an Italian exchange, and stole digital currency worth $195 million. There was a lot of confusion surrounding the hack, as several parties could have shared the blame. Initial Coin Offerings and virtual currency investments are extremely speculative and risky ventures. Individual situations vary, and as such, it is best to consult a certified expert before taking a financial decision. You can start practicing trades virtually before risking your money in an actual market. That way, you will be well-equipped with the necessary strategies when you trade in a real market.