The cryptocurrency market and blockchain analytics were just emerging. In 2022, digital assets increased by at least 21,000%. However, despite the active growth in popularity and promises of reliable security measures, security questions still remain open.
Why should bugs in the system be found through stolen assets? And have their numbers really increased? There have been many illegal cryptocurrency exchanges in the last two years. So we want to tell you about the biggest of them.
Biggest Stolen Crypto Assets in the Last Few Years
How many attacks do you think are carried out on the cryptocurrency market per year? Of course, there are thousands of them, but we might know only hundreds of cases of stolen funds. Below we have placed the biggest crypto heists in ascending order.
Bitfinex is a popular exchange that develops stablecoins called Tether. The hackers broke the cryptocurrency exchanges and managed to steal over $60 million worth of coins, including Bitcoin, in 2016. Indeed, it is not a new crypto hack, but it has a connection to 2021. After the attack, the blockchain agency could trace some money and recover to its customers in the form of equity. In 2019, the US government found two Israeli hackers involved in the attack.
In 2021, the originally stolen coins were found to have been moved from one hot wallet to another. Additionally, blockchain analytics revealed that at least one hacker tried to cash Bitcoin, but he failed.
Liquid Network ($97m)
The crypto exchange network announced that over $97 million worth of funds were stolen due to an attack on Thursday morning. As a result, the company has urged its users not to deposit any exchange into wallets. The company is still trying to find out who is responsible for the attack. According to the news, the hacker who stood behind the rug pulled used special wallets to steal money and took a variety of coins.
BadgerDAO Network ($120.3 m)
Badger is the decentralized finance (DeFi) platform that allows users to borrow and speculate on cryptocurrency price changes. And its hackers stole about $120 million worth of Bitcoin and ether assets. It confirmed the data hack on Twitter and had put its work on hold while employees investigated the breach. Nevertheless, the hackers managed to steal more than 2,100 bitcoins and 151 ether from the customers before the company shut down the system. Its monetary value was $120.3 million.
Cryptocurrency news publications have cited several users from its channel claiming that attackers used vulnerabilities in the platform’s user interface to gain access to user accounts and steal funds. But this blockchain network has not responded to requests for comment on this data.
Cream Finance Network ($130m)
Cream Finance is a DeFi platform that allows users to borrow and speculate on cryptocurrency price movements. It is known for raising billions of investors, but it has been a common target for hackers. They use a flash loan to take advantage of poorly secured protocols.
The PeckShield and SlowMistThe were the first blockchain companies that discovered large instant loan transactions that committed the theft. The hackers exploited a vulnerability in the platform’s monetary system to steal all of Cream’s assets and tokens running on the Ethereum blockchain. Almost six hours after the incident, it fixed the vulnerability using the Yearn cryptocurrency platform.
Vulcan Forged Network ($135m)
Vulcan Forged is simple and is an easy-to-create ecosystem that supports blockchain games. The platform does it through development, incubation, and crowdfunding programs. It also has some fast-paced blockchain games. Its native marker is PYR, which gamers use for online transactions, but it is also sold on the secondary market. On the 13th of December n 2021, more than 4.5 million tokens were stolen due to hacked wallets.
The criminals were able to gain access to the private keys of 148 victims, giving them access to these wallets. The chief scientist of blockchain intends to move to a fully decentralized wallet, and The platform wants to return all stolen coins from its own budget.
Bitmart Network ($196m)
Cybersecurity and data analysis firm Peckshield was the first with the news of a new hack. Its experts determined that the attackers withdrew about $100 million from the Ethereum (ETH) network at the end of 2021. But later, they announced another breach of a crypto hack. It was $96 million through Binance Smart Chain (BSC).
According to experts, about 27 cryptocurrencies were stolen in different blockchains. Hackers use decentralized 1-inch exchanges to transfer virtual money to Ethereum. After that, to mask the path of the coins, the criminals run them through the Tornado. Meanwhile, the platform initially insisted on hacking their crypto hot wallets.
PancakeBunny Network ($200m)
The popular PancakeBunny decentralized finance protocol is based on Smart Chain. And it is one of the platforms that has suffered from the attack. Their vulnerabilities allow hackers to steal over $200 million. According to its team over the past hour, the protocol has come under instant attack from non-identify actors. The attackers loaned “large amounts” of Binance Coin before manipulating the world price and dumping it on the platform’s market.
The hacker also added a private note containing a bunny-themed pun for the transactions that drained the pool. All funds taken to carry out the attack are recovered through PancakeSwap.
Wormhole Network ($326m)
2022 is no exception and already has the first cryptocurrency attack. Hackers stole $326 million from the Wormhole platform. This company is a bridge between various decentralized financial networks and Solana for communications. The company was forced to close during the investigation. The platform has not yet provided much information on how the attackers managed to steal funds or the nature of the exploit.
Samczsun’s analysis of illegal transactions showed that it did not properly check all logins on its platform. And such a superficial attitude to the level of security could well become a real reason for the theft.
Poly Network ($611m)
It is one of the biggest crypto hacks based on the value of crypto assets. This company allows users to exchange tokens between various blockchains (Ethereum and Bitcoin) due to smart contracts. The amount of the biggest hacks was $611 million. Hackers exploited the ability to buy tokens on the platform. But it was all done as a joke. And they began to return tokens from their hot wallets to the network.
Poly Network reported that all assets were returned by the end of the week, except for the $33 million Tether. It was frozen immediately after the attack. So now, it is a real challenge for the network – to understand the progress of the DeFi platform in less than a decade.
Ronin Network ($614m)
The biggest theft was the raid on the Ronin network in March 2022 and related to the tokens stolen in the video games. The network discovered someone had stolen the private keys needed to verify transactions and transferred crypto funds into their wallets. Using the then-current conversion rate puts the cost of the hack at $614 million. Unfortunately, moderates discovered the theft only when customers tried to make legitimate cryptocurrency exchanges.
However, the company ensures that users’ funds are not lost. And it implements the most sophisticated security measures and processes with all the resources at our disposal to prevent future attacks.
List of the Biggest Illegal Crypto Exchanges of Previous Years
During these two years, there was a boom of lost coins. You can compare it with the previous statistic below:
- Zaif ($60m) in 2018.
- NiceHash ($64m) in 2017.
- BitGrail ($170m) in 2018.
- KuCoin ($285m) in 2020.
As you may have noticed, the amount of losses increases every year. It indicates a lack of user security. And the inability of many companies to provide a reveal of hacked crypto exchange.
In addition, a large number of attacks is evidence of need to keep an eye out for such unlawful activities. Companies can achieve it only in cooperation with experts who provide solutions such as assessment, risk analysis, and cryptocurrency transactions.
One of the first questions asked by those who want to understand cryptocurrency is about its security. Here’s what potential investors are Googling:
Experts claim that it is easy to steal cryptocurrency. But hackers have difficulty implementing it. Therefore, the crypto often acts as a hostage until a ransom is received.
Of course, this is a crime. Any seizure of someone else’s property without the consent of the owner is considered a crime.
We can say that cryptocurrency is synonymous with anonymity. Therefore, it is almost impossible to trace it. But in 2022, the US government said they were able to recover more than $3 billion by tracing back what was stolen.