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Infographic: An Overview of Compromised Bitcoin Exchange Events

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The purpose of this infographic is to visualize the size of large cryptocurrency hacks that have occurred in the past as if they all happened today. The hacks included in this infographic extend beyond exchanges, as there were other large entities that experienced cryptocurrency hacks, such as marketplaces like Silk Road 2.0. All hacks in this infographic are displayed as if the price of bitcoin was the same when they occurred, in order to visualize their magnitudes in relation to one another.

The x-axis shows the price of bitcoin at the time of the hack. The y-axis shows the amount lost in the hack (converted to BTC for altcoin hacks). The size of each hack circle was determined by the value of BTC lost using a consistent price, regardless of the actual price at the time.

It is important to note that several of the exchanges (rendered in green) were hacks that did not necessarily involve bitcoin or exclusively involve bitcoin.

Mt. Gox

Hack Dates: June 2011, February 2014

Amount Lost: 790,000+ BTC

In March 2014, Mt. Gox declared bankruptcy due to a series of hacks and thefts that went unreported for over three years, which were later documented by blockchain analyst Kim Nilsson. The final collapse resulted in a crash of Bitcoin in 2014. Below is a summary of all meaningful hacks that occured.

On March 1, 2011, 80,000 BTC were stolen from Mt. Gox’s hot wallet, as thieves were able to make a copy of the wallet.dat file. In May 2011, hackers stole 300,000 BTC temporarily stored on an off-site wallet, which was on an unsecured, publicly accessible network drive. However, shortly after, the thief got nervous and returned the stolen funds with a 1 percent (3,000 BTC) “keeper’s fee.” In June 2011, a hacker was able to get into Jed McCaleb’s administrator account and manipulate prices, temporarily crashing the market. After the ordeal was over, the hacker managed to steal 2,000 BTC.

In September 2011, a hacker was able to get read-write access to Mt. Gox’s database. The hacker created new accounts on the exchange, inflated user balances and was able to withdraw 77,500 BTC, after which they deleted most of the logs containing evidence of such transactions. In October 2011, a bug in Mark Karpeles’ new wallet software caused 2,609 BTC to be sent to an unspendable null key. The largest hack occurred at some point between September and October 2011 when a hacker was able to obtain a copy of Mt. Gox’s wallet.dat file and stole 630,000 BTC.

Bitcoinica

Hack Date: March 1, 2012

Amount Lost: 43,000 BTC and then another 18,457 BTC

Web hosting provider Linode’s servers were hacked, granting access to the bitcoin stored on pioneering exchange Bitcoinica. The incidents ultimately led to the demise of Bitcoinica.

BitFloor

Hack Date: September 2012

Amount Lost: 24,000 BTC

BitFloor was compromised when a hacker was able to access unencrypted backups of the exchange’s wallets and transfer out the coins.

Poloniex

  • Hack Date: March 4, 2014
  • Amount Lost: 97 BTC
  • In March 2014, Poloniex announced that it has been the victim of an attack due to a previously unknown vulnerability in its coding. As a result, the exchange told all of its customers that it would have their account balances reduced by 12.3 percent.

Bitstamp

Hack Date: January 2015

Amount Lost: 19,000 BTC

Hackers were able to access Bitstamp’s hot wallet. As a result of the theft, Bitstamp began to keep 98 percent of its bitcoins in cold storage.

Cryptsy

Hack Date: July 2014

Amount Lost: 13,000 BTC

In early 2016, Cryptsy collapsed following the theft of 13,000 BTC (and 30,000 LTC) from customers’ wallets.

Bitfinex

Hack Date: August 2016

Amount Lost: 120,000 BTC

Attackers were able to exploit a vulnerability in the multisig wallet architecture of Bitfinex and blockchain security company BitGo.

QuadrigaCX

Shutdown: January 15, 2019

Amount Lost: Approximately $190 million in BTC, ETH and CAD (at time of publication)

The co-founder of QuadrigaCX died on December 9, 2018, allegedly as the only one with access to the exchange’s keys. Evolving courtroom proceedings have revealed fund mismanagement and potential fraud on the part of the exchange. This has led to calls for greater oversight of exchange operations.

2018’s Cluster of Mishaps in Asia

A cluster of hacks and mismanagement of funds by exchanges in 2018 occurred as the result of minimal regulation and security precautions. Consequently, some exchanges were forced to close operations entirely while others received fines.

Coincheck (Japan)

Hack Date: January 2018

Amount Lost: 523 million NEM

Coinrail (South Korea)

Hack Date: June 2018

Amount Lost: $40 million in various cryptocurrencies

On July 15, 2018, Coinrail resumed trading and offered the victims two compensation options: a gradual refund through the purchase of stolen cryptocurrency or compensation in Coinrail’s RAIL tokens, which could then be converted into another cryptocurrency at an inner rate.

BitHumb (South Korea)

Hack Date: June 2018

Amount Lost: $30 million in various cryptocurrencies

The successful hack of BitHumb occurred shortly after the exchange updated its security systems following an earlier hack in 2017.

Decentralized Exchanges

Bancor

Hack Date: July 9, 2018

Amount Lost: $23 million (mostly in ETH)

Hackers were able to gain control of a Bancor exchange wallet and transfer out funds.

BitGrail

Hack Date: February 21, 2018

Amount Lost: $170 million in XRB, now NANO

Following this hack, authorities in Florence confiscated all of the cryptocurrency from the Italian exchange BitGrail to secure the claim of affected users, and the Nano Foundation promised to assist in the protection of interests and compensation for losses. Users accused the exchange of having lax security.

MyBitcoin

Hack Date: July 2011

Amount Lost: 78,739 BTC

Little information was released about the MyBitcoin theft, however, many argue that operator Tom Williams ran it as a scam. The theft resulted in the closure of MyBitcoin, which was once a successful Bitcoin company in the cryptocurrency’s early days.

Bitomat.pl

Hack Date: July 27 2011

Amount Lost: Approximately 17,000 BTC

During a server restart, the remote Amazon service that housed Bitomat.pl’s wallet was wiped. No backups were kept and Mt. Gox later bailed Bitomat.pl out. Ultimately, neither exchange customers nor original owners suffered any loss from the incident.

Evolution Darknet Marketplace

Hack Date: March 2015

Amount Lost: Approximately 44,000 BTC

In March 2015, Evolution Marketplace administrators “Kimble” and “Verto” were suspected of unexpectedly shutting down Evolution, a darknet marketplace that appeared after the seizure of Silk Road 2.0, and vanishing from the internet with all user funds.

Silk Road 2.0

Hack Date: February 2014

Amount Lost: Approximately 4,400 BTC

Defcon, an administrator at underground marketplace Silk Road 2.0, noticed that funds held for the escrow service were stolen from a hot wallet in February 2014. “Transaction malleability,” an issue with the Bitcoin protocol at the time that also affected some other services, was blamed for the theft, though many suspect it was an inside job.

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Southeast Asia’s Largest Bank DBS to Launch Crypto Trading for Retail Investors

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DBS, the largest bank in Southeast Asia, is planning to launch crypto trading for retail investors this year, the bank’s CEO has revealed. He added that in the first half of this year, DBS will focus on making “access to digital assets a lot more convenient.”

DBS Bank to Offer Crypto Trading to Retail Customers

DBS, the largest bank in Southeast Asia by assets, is planning to launch cryptocurrency trading services for retail clients this year.

During the bank’s fourth-quarter earnings call Monday, CEO Piyush Gupta was asked whether DBS has any plans to expand its digital asset exchange and if there is a roadmap for rolling out digital asset trading for retail investors given the growth in that market.

Gupta replied:

What we will focus on in the first half, the first two quarters, of this year is to make the access to digital assets a lot more convenient.

He detailed: “Today, what happens is that you’ve got 24/7, but the customers still need to call and speak to bankers. So the first order is to make it all online, make it self-service, make it instant, and make sure the internal processes are robust to be able to support that.”

The DBS boss revealed: “At the same time, we’ve started doing the work on seeing how we can, in a sensible way, take it out and expand it beyond the accredited investor base. And that includes making sure we have the appropriate thinking about suitability, potential for fraud, etc.”

The DBS CEO continued:

Nevertheless, by the time we nail all of these things down, I think you are looking more like the end of the year before we can actually bring something to market.

DBS Bank launched a cryptocurrency exchange in December 2020. The bank then launched a trust service of cryptocurrencies in May last year, followed by the launch of its first security token offering.

The bank’s brokerage arm has also obtained approval from the Monetary Authority of Singapore (MAS), the country’s central bank, to provide crypto services.

What do you think about DBS launching crypto trading for retail investors? Let us know in the comments section below.

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St. Louis Fed President Says Central Bank’s ‘Credibility Is On the Line’ as US Inflation Surges

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Inflation continues to grip American wallets, according to a recent economic analysis from Moody’s Analytics, which shows inflation is likely costing the average U.S. household between $250 to $276 per month. Meanwhile, the U.S. Federal Reserve is expected to raise the benchmark interest rate in March and St. Louis Fed president James Bullard believes the Fed needs to “front-load” rate hikes.

St. Louis Fed President on Inflation: ‘People Are Unhappy, Consumer Confidence Is Declining’

Last week, the U.S. Labor Department published its Consumer Price Index (CPI) report which noted inflation jumped 7.5% higher than it was a year ago. Following the report, Moody’s Analytics notes that the average U.S. household is likely paying $250 to $276 a month due to the added inflation. As the days continue in 2022, the U.S. dollar’s purchasing power has decreased and the price of goods and services has increased.

Moody’s senior economist Ryan Sweet explained that a lot of Americans are feeling the burden of inflationary pressures. “A lot of people are hurting because of high inflation,” Sweet said. “$250 a month—that’s a big burden. It really hammers home the point of ‘what is the cost of inflation?’”

The chief executive officer and 12th president of the Federal Reserve Bank of St. Louis, James Bullard, made similar remarks on Monday. “The inflation that we’re seeing is very bad for low- and moderate-income households,” Bullard told CNBC. “People are unhappy, consumer confidence is declining. This is not a good situation. We have to reassure people that we’re going to defend our inflation target and we’re going to get back to 2%.”

Bullard also spoke about the Labor Department’s January CPI report published last week. “My interpretation was not so much that report alone, but the last four reports taken in tandem have indicated that inflation is broadening and possibly accelerating in the U.S. economy,” Bullard stressed. During the CNBC “Squawk Box” interview, the president of the Federal Reserve Bank of St. Louis added:

I do think we need to front-load more of our planned removal of accommodation than we would have previously. We’ve been surprised by the upside on inflation. This is a lot of inflation. Our credibility is on the line here and we do have to react to the data. However, I do think we can do it in a way that’s organized and not disruptive to markets.

San Francisco Fed President: ‘Fed’s Abrupt and Aggressive Action Can Actually Have a Destabilizing Effect’

Equities markets have felt the sting of a souring U.S. economy as Nasdaq, NYSE, and the Dow Jones Industrial Average all closed in red territories on Monday. Data shows bond markets have also signaled that investors are concerned about the Fed’s decision.

The president of the Federal Reserve Bank of San Francisco, Mary C. Daly, spoke about the Fed acting on inflation as well, but stressed to CBS’s “Face the Nation” that it needed to be a “measured [approach].”

“I see that it is obvious that we need to pull some of the accommodation out of the economy,” Daly explained. “But history tells us with Fed policy that abrupt and aggressive action can actually have a destabilizing effect on the very growth and price stability we’re trying to achieve.”

What do you think about Moody’s data on inflation? What do you think about the comments stemming from the two Fed presidents Bullard and Daly? Let us know what you think about this subject in the comments section below.

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NYSE files a trademark application for trading NFTs

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The world’s largest stock exchange may be planning to bring business into the Metaverse.

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Traders say $4,000 Ethereum back on the cards ‘if’ this bullish chart pattern plays out

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Global tensions that could trigger a correction in markets abound, but traders say ETH’s current setup could result in a swift return to the $4,000 level.

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CryptoPunks community reacts to the ongoing copyright battle between V1 and V2

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Although the collection is no longer deemed authentic by Larva Labs, its creators alleged sold 210 ETH worth of CryptoPunks V1 when the wrapped versions first gained traction.

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