Investing in cryptocurrencies is not a cakewalk. The peripheral view of the gamete seems pretty alluring and attractive. It may be so but the costs of the odds are equally even. One must be thoroughly aware of all that is involved in the cryptocurrency business.
The values attached and the latest trends have to be studied on a regular basis to keep unpleasant scenarios at bay. There has been a fall in the cryptocurrency investments and that is mainly because of the increase in the number of fraudulent cases and hacks. The instability and uncertainty of the market drive many investors to pull away from making any further investments. Those who are existent investors have been subjected to immense panic and worry. The cryptocurrency market has seen some terrible hacks that have given reasons enough for people to frown upon the cryptocurrency market-
In May 2019, this buzzing bitcoin exchange was hacked off 7000 Bitcoins worth $40 million. The breach was possible as hackers could access the API keys of the users. Along with the private keys, the hackers also got access to 2FA codes. The hackers used various techniques to conduct the breach via phishing, viruses and other attacks. The team had issued a statement claiming that all the lost money will be recovered through their fund. It is one of the recent and value intensive loss that the cryptocurrency industry has faced so far.
This Japan-based Bitcoin exchange has been hacked twice. Once in 2011 and other in 2014. In 2011, the hacker was successful in collecting the credentials of the exchange’s auditor. 2609 Bitcoins were transferred to an address whose key was not known. This led to the suspension of the operations of Mt.Gox for some time but they could regain a foothold. Then again in 2014, when Mt.Gox was handling most of the world’s transactions, the amount stolen was huge enough to make the company go bankrupt. It reported a loss of 750,000 bitcoins which were of the worth around $350 million. All investors lost their funds and no recoveries could be made.
This 2016 hack is considered the second-largest hack ever in the history of cryptocurrency. The breach claimed 170,000 bitcoins worth around $72 million. The hackers got a hand into the wallet form of the Bitfinex. Bitfinex however issued BFX tokens which were redeemable by investors.