Bitcoin exchange hack is a major concern to all crypto exchange platforms. Bithumb is the latest exchange platform that was hacked on June 2018.
Bithumb is considered to be the sixth largest crypto exchange in the world. Immediately the news spread, bitcoin dropped to about $150 and later bounced back after the exchange platform promised to pay back the losses to its clients.
It is understandable to see such a quick drop and recovery in the crypto market since there has been high profile theft that is taking place in bitcoin exchange platforms. So, this does not actually cause a massive panic in the market when such an event takes place.
From Ciphertrace estimates, a company that designed to specialize on cyber security within the blockchain, it shows about $730 million USD has been stolen only this year from exchange platforms.
Following this estimate, the losses by Bithumb is about 5% of all the funds that had been stolen from all the previous sources. Market reaction depends on the amount of funds stolen. Most of the reactions in the market depend on the amount that has actually been stolen.
Bitcoin Exchange Platforms Hacked:
Below is a prepared list of five exchange platforms that have been hacked since 2013.
The ranking from the research was conducted based on the amount that was stolen and also the market rate in the month of the hacking.
5. February 2018: BitGrail
BitGrail was hacked in February this year and about 17 million of XRB/Nano was stolen which is about $200 million at the said time of hack and worth approximately $40 million by late July. The conditions surrounding the hack was not clear as it seemed to be an inside job. The hack took place in a very questionable circumstances.
4. July 2017: BTC-e
BTC-e has been considered as one of the major exchange platforms before been invaded by FBI and subsequently shut down the platform due to the rising concerns of money laundering taking place. Later, It was found that at least 485,000 ETH was withdrawn which is about $100 million and worth about $230 million now.
3. January 2018: Coincheck
Coincheck hack is considered to be one of the most massive hack in 2018 and the third in crypto hack estimates. About 523 million NEM got stolen from one of the exchanges wallets which is about $500 million at the time and worth $95 million as at July, 2018.
2. July 2016: Bitfinex
Bitfinex witnessed a major hack in July and about 120,000 Bitcoin got stolen on the platform, this all took place in the multi-signature exchange’s wallet. The amount is equivalent to about $78 million at the time, and now it could be $840 million. With such a big hack the platform did not pay out any compensation to the various users, but instead, it went ahead to issue its own debt token.
1. February 2014: MT. GoxI
This is considered to be the greatest hack of its kind so far. About 850,000 Bitcoin was stolen which worth $425 million USD as the time. When converted now, it worth about 6.3 billion USD. Before it’s hack, the platform counts about 70% of bitcoin trade worldwide.