More than $11 billion worth of cryptocurrencies has been lost in hacking attacks since 2011 as per a report published by Inside Bitcoins. The hacking incidents increased last year, losing more than $101 million with more than eight institutions suffering breaches.
The biggest robbery of $6.68 billion worth of cryptocurrencies was reported in 2014 that vanished owing to four different hacking incidents. According to the report, some other platforms that were affected by the hacking attacks mainly comprised of Bitcoin wallets and mining platforms.
Private Keys Should Be Secured Properly To Prevent Hacking
The cryptocurrency industry has more than 12,000 exchange marketplaces that trade various crypto-coins like Bitcoin, Ethereum etc. If the Account details, i.e. the private keys would not be secured properly, it can get hacked, and the assets stored in those accounts can easily be misused or stolen.
According to a New York-based consultancy company, i.e. Transparency Market Research, in 2017, the cryptocurrency market was valued at $574.3 million. The market research forecasts that by 2025 the market will be worth $6.7 billion. The study predicted a growth rate of 31.3% between 2017 and 2025.
The Cryptocurrencies Biggest Hack Reported In 2014 At Mt. Gox
In 2011, the first hacking was reported when Mt.Gox, a Tokyo-based bitcoin exchange lost around $17.2 million. According to the report, the hack was arranged by an auditor within the firm. The biggest hack happened in the same exchange in 2014, after which the company lost around $6.5 billion. Mt.Gox was the world-leading Bitcoin exchange which was managing more than 70% of the global transaction, but after the hack reported in 2014, the exchange filed for bankruptcy.
Inside Bitcoins commented that the hackers are using various techniques like phishing and viruses to steal users data in a massive amount. Last year also, more than 7000 Bitcoins were stolen from the world’s biggest cryptocurrency exchange, Binance.
Hence it is clear that blockchain technology is equally susceptible like any other network and the users and investors should collaborate to minimise the losses.