The Largest Cryptocurrency Hacks So Far

One of the obstacles to the mainstream adoption of digital currency has been hacking. Some high-profile thefts have occurred on various cryptocurrency exchanges and platforms, deterring investors from using them.

It has been argued that blockchain projects are secure, but attacks over the years have demonstrated that this is only partially true. Over $1.7 billion in cryptocurrency was stolen in 2023 ($3.8 billion in 2022), according to blockchain analysis firm Chainalysis. Take a look at some of the largest crypto hacks to date.

Key Takeaways

Hacking remains a major barrier to cryptocurrency adoption.
Cryptocurrency exchanges are a major target for hackers, with more than $1.7 billion stolen in 2023 and $3.8 billion stolen in 2022.
The first major exchange to suffer from a hack was Mt. Gox, which lost 7% of all bitcoins at the time.
Decentralized finance applications and smart contracts are also a favorite target for hackers.
Some of the most important safety rules for long-term investors are keeping cryptocurrencies offline if you are not actively trading or spending them and not using custodial accounts unless they provide insurance.

Ronin Network: $625 Million

The largest cryptocurrency hack to date was conducted in March 2022 and targeted the network that supports the popular Axie Infinity blockchain gaming platform. Hackers breached the Ronin Network and made off with around $625 million worth of Ether and USDC (a stablecoin). Investigators said that a North Korean state-backed hacking collective, the Lazarus Group, was linked to the theft. Sky Mavis (Axie Infinity’s developer) recovered $5.7 million of the stolen funds a month later, but it remains the largest cryptocurrency hack in history.

Poly Network: $611 Million

In August 2021, a lone hacker pounced on a vulnerability in the Poly Network decentralized finance platform and made off with over $600 million. The project’s developers issued an appeal on X (formerly Twitter) for the stolen funds, which included $33 million Tether. The Poly Network then established several addresses for the funds to be returned to, and the unknown hacker began cooperating. After only two days, around $300 million had been recovered, and it emerged that the hacker had targeted the network “for fun” or as a challenge.

Binance BNB Bridge: $569 Million

In one of the most high-profile attacks in cryptocurrency history, the Binance exchange was hacked for about $570 million in October 2022. A cross-chain bridge, BSC Token Hub, was exploited by hackers, who created and withdrew 2 million extra Binance Coins (BNB). A bug in a smart contract enabled the hack, highlighting the need for tighter blockchain security.

$1.7 billion

The amount of cryptocurrency stolen from exchanges and other platforms in 2023, down from 2022’s $3.8 billion.

Coincheck: $532 Million

In January 2018, the Japanese exchange Coincheck suffered a theft of $523 million NEM coins valued at about $534 million. The vulnerability was created by a hot wallet, which is a live cryptocurrency wallet and not as safe as an offline cold storage wallet. At the time, the Coincheck hack was larger even than the notorious Mt. Gox hack; NEM Foundation president Lon Wong described it at the time as “the biggest theft in the history of the world.”

Coincheck survived the hack and continued operating despite being bought out a few months later by the Japanese financial services company Monex Group.

FTX: $477 Million

In November 2022, FTX, at one time an influential player in the crypto industry, declared bankruptcy. On the day it filed for Chapter 11 bankruptcy, more than $477 million was stolen from its crypto wallets. Many FTX wallet holders reported $0 balances in their FTX.com and FTX US wallets.

The crypto exchange confirmed the hack on its Telegram channel, saying, ”FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don’t go to the FTX site as it might download Trojans.”

In 2024, reports emerged about the arrest of a SIM card swapping ring that gained access to an FTX employee’s accounts and siphoned off millions in crypto.

Mt. Gox: $473 Million

The first major crypto hack occurred in 2011 when the crypto exchange Mt. Gox lost 25,000 bitcoins worth approximately $400,000. At that time, the crypto exchange handled nearly 70% of all Bitcoin transactions.

The attacks didn’t stop, and Mt. Gox was hit again in 2014. It lost almost 650,000 of its customers’ bitcoins and about 100,000 of its own. At the time, that was 7% of all bitcoins and was worth approximately $473 million. Initial reasons for the coins’ disappearance were unclear, but later evidence showed that the coins were stolen from the company’s hot wallet.

Wormhole: $325 Million

The decentralized finance platform Wormhole was targeted in February 2022, with $325 million taken by hackers. The attack had been made possible by an upgrade to the project’s GitHub repository, which was not then deployed to the live project. The popular cryptocurrency bridge had to plug the hole in the project’s finances after the funds were not recovered. This was also the largest theft that included Solana, one of the rivals to Ethereum’s dominance in the worlds of DeFi and NFTs. Up to $47 million was taken in the blockchain’s native SOL token.

DMM Bitcoin: $305 million

Japanese cryptocurrency exchange DMM Bitcoin was attacked in May 2024, resulting in a theft of 4,500 BTC (about $305 million at the time). How the exchange was hacked remains unknown as of Nov. 2, 2024, but the Lazarus Group is again thought to be behind the theft.

Mixin: $200 Million

The Mixin Network is a peer-to-peer, cross-chain network that facilitates cryptocurrency transfers. In September 2023, the network was hacked through the database of its cloud service provider. Thieves made off with about $200 million worth of bitcoin (BTC), ether (ETH), and tether (USDT).

Euler Finance: $197 Million

Euler Finance is a borrowing and lending protocol platform based on the Ethereum blockchain. On March 13, 2023, hackers conducted a flash loan attack, grabbing $197 million in wrapped Bitcoin (wBTC), DAI (a MakerDOA stablecoin), staked ether (stETH), and USDC. A flash loan attack occurs when a hacker uses a flash loan—a loan without collateral that must be paid in full in the same transaction, often used by traders in arbitrage—to withdraw massive amounts, letting the thieves manipulate prices.

However, in a strange twist, the hacker(s) began returning the stolen funds in increments several days later, citing concerns over their safety.

Bitmart: $196 Million

December 2021 saw a hack of the Bitmart centralized exchange with losses of $196 million. The hack was first spotted by a security analysis firm, which noted BitMart addresses being drained of their balance. Around $100 million in various cryptocurrencies were funneled via Ethereum, with another $96 million exiting through Binance Smart Chain. All the tokens were moved to an address labeled by Etherscan as the “BitMart Hacker.”

Nomad Bridge: $190 Million

Only one month before the Wintermute breach, there was a more significant hack: an attack on Nomad Bridge. The hackers drained $190 million of the project’s funds. Nomad is a cryptocurrency bridge that lets users swap tokens between blockchains. Bridges are one of the latest hacker favorites due to the considerable value of their assets and the complexity of the smart contract code on which they run. Nomad Bridge later recovered $37 million of the stolen funds.

Beanstalk: $182 Million

This hack involved the exploitation of a decentralized finance (DeFi) platform using a flash loan. After borrowing $2.5 billion in different assets, the hacker took a 67% controlling stake in the project and approved a transfer of funds to their wallet before repaying the loan and disappearing with the profits.

Wintermute: $162 Million

Wintermute, a leading cryptocurrency market maker, was attacked in September 2022. The project lost about $160 million in the hack, which made things worse for Wintermute because it owed $200 million to other market participants. The CEO offered a 10% bounty to the hacker if they returned the funds.

Multichain: $125 Million

Multichain claimed to be a cross-chain router protocol, which theoretically would allow nearly all blockchains to communicate with each other and transfer assets across them—something that was and is needed for Web 3 to continue progressing.

Multichain’s CEO, Zhaojun, was reportedly arrested in China and disappeared, leading analysts to believe the theft was the result of a rug pull, where system owners/developers create a product, attract funds, and suddenly leave with the money.

Other Notable Hacks

BonqDAO: ~ $120 million
Poloniex: ~ $132 million
Atomic Wallet Users: ~$100 million
HTX Exchange Heco Bridge: ~$100 million
Curve: ~$70 million
CoinEx: ~$54 million
KyberSwap: ~$56 million
Stake.com: ~$41 million
Orbit Chain: ~$81.5 million

Which Cryptocurrency Has Been Hacked?

Many cryptocurrencies have been hacked, such as Bitcoin Satoshi Vision, Bitcoin Gold, and Ethereum Classic.

What Is the Most Secret Crypto?

Monero remains one of the most secretive cryptocurrencies in terms of traceability. Its developers pride themselves on making it nearly impossible to trace. In fact, updates to the Monero blockchain will further decrease the odds of discovering transaction participants.

Is There Any Way to Get Free Crypto?

New projects release “free” tokens all the time in airdrops and promotions, but these should be approached with caution as they tend to be used in scams. That said, nothing in life is free, especially cryptocurrency.

The Bottom Line

The cryptocurrency industry has grown rapidly since the mid-2010s and may even be advancing too fast, as the number of hacks and thefts demonstrate exploitable weaknesses.

Continuous hacks have exposed the vulnerability of the crypto industry and undermined investors’ confidence. To avoid further damage to sentiment, developers and businesses need to exercise more caution and implement more security protocols for blockchain networks and supporting systems.

Source link