Top 5 Crypto Hacks In 2021
It’s true that cryptocurrency, DeFi, and blockchain technology have contributed a lot to changing the world’s payment system. And due to this, the prices of these coins have continued to rise rapidly every day.
It’s true that even though the crypto community is currently booming, there will still be coins failing to meet the expectation of investors. Hackers and scam platforms are also hindering the crypto community’s success. However, for any crypto enthusiast, there are several opportunities to explore in the crypto industry such as investing, trading, staking and lending, crypto social media, mining, airdrops, and forks.
As there is so much success in the crypto industry, hackers and scammers are not going to let this opportunity slide without exploiting it. Basically, the main reason why we always saw the news is that millions of crypto are always stolen from wallet holders every year.
While there are numerous benefits for holding crypto to make money, it’s often risky because of the huge number of thefts and hacks going-on on the internet. These are the reason that most crypto investors are living in fear because they don’t want to lose their money.
Let’s take a look at the top 5 crypto hacks in 2021 and understand what lead to it and how it did happen:
You might be surprised to know that most people are making a living from learning how to hack bitcoin and other cryptos – which contributes to the failure of investors. The crypto exchange Livecoin has its headquarter in Russia in 2020, before suffering a hack attack at the year-end.
The hackers managed to damage the exchange entirely by manipulating the exchange rate values, which lead to the platform shutting down entirely.
Tether experienced a breakdown on their platform which is not exactly a direct hack but just extortion. The hackers who participated in the heist claim to have stolen a very sensitive document from Tether that’s worth a lot of money.
With this document, the hackers were able to threatened Tether to pay over 500 BTC in exchange for the document, otherwise, they will make it public. However, the interesting thing is that Tether refused to pay the amount demanded by the hacker but instead made an announcement that sensitive information was stolen from them and released by hackers.
With this approach, Tether was able to turn the tides around by letting their users understand what was going on. And this puts the hackers in a tough situation as they weren’t able to do much.
Coinbase is a popular exchange in the crypto community, however, it’s not everyone that knows about the attack they experienced in August 2019. The platform has encountered a lot of breaches in the past, however, in 2019, the attack they encounter was very severe.
The hackers tried to attack the Coinbase community breaching the information of users on the platform. They were able to access over 6,000 accounts and transfer a huge amount of money from users’ wallets to theirs. Even though the attack was stopped before it could get worse – a tremendous amount of money was already stolen. The hack was reported to have been originated from a third-party breach.
- Poly Network
It was a complicated year for Polly Network in 2021 as they experience an attack that led to the loss of $600 million worth of cryptocurrency. The coins were exploited from Poly Network by hackers from users’ accounts on the platform. And before the platform was able to take action in stopping the hackers, the money have been exploited from users’ wallet addresses.
- The loss that Poly Network suffered at the hands of hackers indicated that the DeFi industry still needs to implement a tighter security protocol, controls, and transparency to ensure that the same thing doesn’t happen again.
After the Poly Network hack event took place, Poly Network took an extra step to get the addresses where the stolen coins were blacklisted. They took extra steps in having the law enforcement agency help them recover over $500 million.
- Cream Finance
The Cream Finance platform was hacked in August 2021 and over $18 million was stolen. The attack on the platform experience in August was due to an issue related to smart contracts. The hack used the strategy of lending and borrowing funds on multiple wallets to dupe the platform over $18 million ETH.
The above information includes the top 5 crypto hacks in 2021, which any crypto enthusiasts should know and keep in mind.