Cryptocurrencies or digital assets trading is a profitable choice for the people of any nation and also contribute in the economic growth of the nation. Besides being lucrative the major drawback of crypto trading is hacking.
As per a report by BBC, majorly, a total of five security breaches have happened since 2018. These breaches have led to deceit of $2021 million by the hackers.
In 2018, two crucial breaches occured from the Italian exchange BitGrail affecting heaps of investors. Around 2,30,000 investors were affected due to hacking. The hackers managed to hack around $534 million from Coincheck, a Japanese exchange. However, the investors were reimbursed later.
In the pandemic year of 2020, Korean hackers lifted around $610 million from the Seychelles-based exchange, KuCoin. Yet again, the company managed to recover it’s stolen funds and refunded it to it’s customers.
In 2021, August one of the biggest crypto heist happened. Around $610 million was hacked from the PolyNetwork, a DeFi platform. Surprisingly this was the only time when the hackers returned all the assets to the company. This enabled the company to reimburse its asset holders.
Followed by the above, on August 19, 2021 $97 million in Japan’s Liquid exchange were hacked. Major loopholes were found in the security system of these exchanges which the hackers were able to track down and invade easily.
As per a report by TOI, these exchanges are the ones that have inbuilt safekeeping vaults with digital blind doors, locks and keys and many more security features which are all blocks of information. However, their security has been questioned in the recent times due to their consequential hacking.
Earlier in development, PolyNetwork had to send a letter to the hacker asking him to return the assets as they belonged to members. They even offered $500,000 and immunity as a reward for returning the assets.
A report by BBC quoted the statement given by Frances Coppola that said, “cryptocurrency organisations must learn from their security breaches and infuse more security features into their systems.”