Major Cyber-Attacks in the Cryptocurrency Industry
The year 2023 has seen several significant cyber-attacks in the cryptocurrency industry, with some of the most high-profile breaches causing widespread concern and financial loss. These incidents have highlighted the vulnerability of even the most established crypto platforms to sophisticated cyber threats.
Multichain’s $130 Million Heist: A CEO’s Custody Triggers Chaos
- Date: July 7, 2023
- Amount Lost: $130 Million
- Attack Method: Private Key Compromised
Multichain, a cross-chain protocol, suffered a massive blow when hackers compromised its private keys, leading to a heist of $130 million. This incident was particularly alarming due to its connection with the custody of CEO Zhaojun by Chinese authorities, who confiscated critical devices and mnemonic phrases.
Euler Finance’s $197 Million Flash Loan Fiasco
- Date: March 13, 2023
- Amount Lost: $197 Million
- Attack Method: Flash Loan Donate Function Logic
Euler Finance, an Ethereum-based borrowing and lending protocol, became a victim of a flash loan attack, resulting in the loss of nearly $200 million. The breach targeted various assets, showcasing the vulnerabilities of DeFi protocols.
Mixin Network: Database Attack Leads to $200 Million Loss
- Date: September 23, 2023
- Amount Lost: $200 Million
- Attack Method: Database Attack
Mixin Network faced a devastating database attack, resulting in a $200 million loss. This led to a suspension of all withdrawal and deposit services, highlighting the risks associated with peer-to-peer transaction services.
Atomic Wallet Compromised: $100 Million Stolen
- Date: June 3, 2023
- Amount Lost: $100 Million
- Attack Method: Private Key Compromised
Atomic Wallet’s security vulnerabilities, including flawed cryptography and issues with the Electron framework, led to a significant breach, with an estimated loss between $35-100 million.
Poloniex Exchange: Over $100 Million Lost to Private Key Hack
- Date: December 10, 2023
- Amount Lost: $100 Million
- Attack Method: Private Key Compromised
Poloniex Exchange, owned by Justin Sun, faced a major security breach. An unknown hacker compromised the platform’s private key, resulting in a substantial loss in various altcoins.
Heco Bridge and HTX: $97 Million Lost in Dual Exploits
- Date: November 22, 2023
- Amount Lost: $97 Million
- Attack Method: Private Key Compromised
A sophisticated exploit targeted the Heco chain bridge and HTX’s hot wallets, leading to a combined loss of $97 million. This attack involved transfers to external accounts and swaps for Ethereum (ETH).
Enhancing Security Measures in the Cryptocurrency Industry
These incidents have underscored the critical importance of enhancing security measures within the cryptocurrency industry. As hackers evolve their strategies, the sector responds by fortifying its defenses and seeking to mitigate future threats. For an in-depth analysis of these attacks and a comprehensive look at the trends and patterns in crypto-related cyber threats, refer to CoinPedia’s Hack Report of 2023.
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