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A key reason blockchains and cryptocurrencies have become popular is that, due to their decentralized nature, each transaction can be verified and ensured. However, despite this, some bad actors have attacked blockchain networks and succeeded in stealing hundreds of millions of dollars.
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A network can be exploited in various ways, such as through phishing, malicious code, etc. An attack could be on a crypto wallet, crypto exchange, or cross-chain network.
According to blockchain data platform Chainalysis, over $3.8 billion worth of cryptocurrency was stolen from users in 2022. The good news is that the trend of scams and stolen funds has decreased so far in 2024, Chainalysis said.
Here are some of the biggest crypto hacks of all time.
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Ronin Network: $625 million
The biggest cryptocurrency hack to date took place in March 2022 when hackers attacked the Ronnin network supporting the popular Axie Infinity blockchain gaming platform. They stole approximately $625 million worth of Ethereum and the USDC stablecoin.
The heist involved 173,600 Ether worth just under $595 million and $25.5 million in USDC. U.S. officials stated that a North Korea-backed hacking group, Lazarus Group, was responsible for the theft. A month later, Binance recovered $5.8 million of the stolen funds, but it remains the largest hack in history.
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Poly Network: $610 million
In August 2021, a hacker exploited a vulnerability in Poly Network’s system, stealing over $600 million in funds. In a surprising turn of events, the hacker did not escape with the entire amount. Instead, the hacker communicated with the platform and decided to return most of the money, keeping only $33 million worth of Tether (USDT). It was later discovered that the hacker had targeted the network “for fun” or as a challenge. Poly Network offered the hacker a $500,000 bounty to restore user funds and even invited them to become its “chief security advisor” as a gesture for finding the system vulnerability.
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Binance: $570 million
In October 2022, the Binance crypto exchange fell victim to one of the most high-profile cryptocurrency hacks, resulting in a loss equivalent to $570 million. A cross-chain bridge, known as the BSC Token Hub, which allows the transfer of assets from one blockchain to another, was exploited, resulting in the creation of extra Binance coins. Hackers were able to take away all available coins. At the time of the attack, 2 billion BNB tokens were drained from the cross-chain bridge, valued at $570 million.
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Coincheck: $547 million
Among the earlier crypto exchange hacks, the Coincheck attack took place in Tokyo in January 2018. A vulnerability in the exchange’s hot wallet enabled the attackers to steal $534 million in NEM, or the New Economy Movement, coins. A few months after the hack, Coincheck was purchased by the Monex Group, a Japanese financial services company. A portion of Coincheck’s capital was used to repay its clients whose funds were stolen during the attack.
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Mt. Gox: $473 million
The Mt. Gox hack was one of the first major cryptocurrency hacks. In 2011, hackers made off with 25,000 Bitcoins valued at around $400,000. The exchange handled nearly 70% of all Bitcoin transactions at that time.
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In 2014, Mt. Gox experienced another attack which resulted in the loss of nearly 650,000 of its customers’ Bitcoins and about 100,000 of its own. This amounted to approximately 7% of all bitcoins in circulation at the time, valued at around $473 million.
Tokyo-based Mt. Gox, formerly the world’s largest Bitcoin exchange, declared bankruptcy in 2014, leaving creditors owed 45 billion yen ($414 million). Recently, the exchange transferred nearly $9 million, possibly to repay its creditors.
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Wormhole: $325 Million
Wormhole, a popular bridge connecting the Ethereum and Solana blockchains, was targeted in a hack in February 2022, resulting in the theft of cryptocurrencies worth over $320 million. Through the Wormhole platform, Solana and other decentralized finance networks were able to communicate with each other. Due to a vulnerability, hackers were able to shut down Wormhole’s platform. This was the largest theft to include Solana, one of Ethereum’s biggest rivals in the decentralized finance (or DeFi) space.
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