It’s not just a few lucky investors who are reaping the benefits of cryptocurrency. Why? Stay tuned on World cryptocurrency news.
In the last year, hackers have stolen billions of dollars in virtual assets by infiltrating some of the cryptocurrency exchanges that sprung up during the bitcoin boom.
Despite the high financial sums involved, these thefts rarely garner the same level of drama or publicity as traditional bank robberies. However, cryptocurrency specialists caution would-be crypto investors that exchanges have become lucrative targets for hackers.
This year, a digital thief stole at least $10 million in digital currencies from a crypto exchange or project in more than 20 hacks. According to data obtained by NBC News, hackers stole more than $100 million in at least six cases. According to the FBI’s yearly crime statistics, bank robberies netted culprits an average of less than $5,000 each heist last year.
Bank Robbers Of Today Modern World
Cryptocurrencies have evolved from an internet oddity that required a certain level of technical know-how to purchase. They have transition to a more mainstream investment and speculation tool where prompting more than 300 companies to launch in recent years to provide people with an easy way to buy and sell everything from bitcoin to more fringe “altcoins” like the dog-inspired dogecoin.
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Security-wise and The Part
Cryptocurrencies are known for their security, and their name is derived in part from the word “encryption.” However, the exchanges that administer them, particularly new ones that are starting from scratch, frequently have a small workforce, with few if any full-time cybersecurity expertise. Their programmers may work feverishly to make the code work, and they may unintentionally introduce loopholes that allow hackers to gain access. Exchanges are a particularly attractive target for criminal hackers, because of the fact that a turbulent market often leaves them with a large sum of money.
Some of the bitcoins held by exchanges are kept in so-called cold wallets, which are stored safely offline. The rest is held in liquid “hot wallets” that can be distributed to users.
Recent Examples of Crypto World Incident
One of the largest heists occurred in early December, when Bitmart, a cryptocurrency trading platform, claimed that hackers had broken into a business account and stolen about $200 million. Before allowing customers to trade their money again, the business froze all client transactions for three days.
The problem is exacerbated by the fact that many cryptocurrency projects are set up in countries where law enforcement agencies do not have much capacity to go after international hackers in order to dodge government rules. Or, if they are hacked, they are less likely to seek government assistance due to ideological concerns, according to Beth Bisbee, the head of US investigations at Chainalysis, a company that records cryptocurrency transactions for both private corporations and government agencies.
While exchange hacks resemble bank robberies in certain ways, they lack the features that made them front-page news in the past. Despite the high financial sums, public oversight of these breaches often is insufficient. The majority of exchange hackers go undetected, leaving customers with little recourse. There’s almost never any physical proof or real-world consequences: no terrified bank tellers or perp walks, for example.