Any Internet-connected device, from your smartphone to your automobile, is susceptible to security flaws. Decentralised finance, or DeFi, is also vulnerable in the crypto industry. The DeFi protocol, as we all know, is enabled by blockchain technology.
Rather of storing all data on a single server, blockchain technology distributes and saves data digitally among numerous nodes of a computer network, making it impossible to hack. Even so, numerous aspects of this evolving DeFi technology rely on conventional servers, which operate as system weaknesses.
Scary fact: Over the last year, DeFi breaches and related frauds have totaled $10 billion, and hackers want to keep coming back to the crypto industry for more.
In this post, we’ll look at some of the greatest crypto hacks to date, their likely consequences, and minor actions we can take to protect ourselves against hackers.
Biggest hacks in crypto till now
In August of last year, hackers broke into the blockchain-based platform Poly Network and stole almost $600 million in cryptocurrencies, making it DeFi’s greatest ever attack. Wormhole Portal, a crypto platform, was hacked in February and lost $322 million, making it the second-largest crypto theft in the DeFi industry.
Last year, several crypto-related businesses such as Vulcan Forged, Crypto.com, and BitMart were hacked and lost millions of dollars. Crypto has grown to the point that it has become a playground for well-known hackers, who have increased their activity in the $1.72 trillion crypto industry.
Hackers contacted Shiba Inu investors through Twitter and Telegram in November 2021, requesting email addresses and wallet information. In reality, hackers recently seized control of many crypto celebrities’ YouTube channels, as well as Indian exchanges including CoinDCX, WazirX, and Unocoin.
On these channels, a message was posted requesting that people deposit Binance and Ether tokens to a random wallet address. Scammers have already started targeting victims using crypto ATMs and QR codes, which are growing more common in nations like El Salvador and the United States.
By telling some fancy scheme, scammers take people to crypto ATMs and then by scanning a QR code, they can transfer the entire money to their wallet. The majority of hackers obtain funds in the form of cryptocurrencies such as Ether.
They employ privacy mixers like Tornado Cash to make funds untraceable by breaking the on-chain link between the source and destination wallet addresses. While still present in the crypto ecosystem, the stolen tokens might be laundered into new ones.
Law enforcement authorities from all around the world have issued warnings to cryptocurrency investors. Last year, the FBI issued a recommendation advising asset owners to avoid ATM machines that promote “anonymity.”
Indian authorities have also cautioned crypto investors in the country to avoid moving funds to unknown, unapproved wallets, from which hackers might not only defraud you but also misuse your data in the future.
Catch Up With Crypto
Let’s take a look at some more significant crypto developments right now. The month of February has been a particularly fascinating one for cryptocurrency. The public’s reaction to India’s crypto prohibition was mixed.
While industry experts applaud the “regulate over restrict” strategy, small and medium investors are pressing for a reduction in the 30% tax cap. In India, the hashtag #ReduceCryptoTax has become a trend on Twitter.
Sundar Pichai, Google’s CEO, spoke out in favour of the forthcoming Web3 area, admitting that the company is keeping an eye on the blockchain sector and looking for ways to incorporate the crypto-supporting technology into Alphabet’s goods and services.
Microsoft and YouTube have started looking for top executives to manage their Web3 efforts. Dara Khosrowshahi, the CEO of Uber, has also stated that the company may accept cryptocurrency payments in the future. Meanwhile, Russia has begun testing its official digital currency, the “Digital Rouble,” and is expected to make the CBDC, which is controlled by the central bank, available to residents shortly.
At the beginning of February this year, the crypto market began to show signs of revival. The crypto markets saw greens return to the price charts after India revealed its ambitions to put out a central bank-regulated digital Rupee.
Following a string of price drops, Bitcoin and Ether saw significant gains in the first week of February. While the price of Bitcoin surpassed $45,000, the price of Ether remained at $3,500. Dogecoin and Shiba Inu, two meme-based cryptocurrencies, have also risen after months of slumber on the market.
Most of the well-known altcoins such as Cardano, Ripple, Polkadot, and Polygon also saw slight fluctuations in value.
Breaking Down The Numbers
It’s time to have a look at how key tokens are performing, because as an investor, you need to be aware of such facts. Looking at our crypto tracking for the week, we can see that Bitcoin has lost.82 percent, while Ethereum has down 1.82 percent. Tether is up.20 percent, while Cardano and Dogecoin are down 1.70 percent and 1.41 percent, respectively.
It’s been a tumultuous couple of weeks for crypto, and it looks like it’ll only get crazier as the industry grows. But the Comprehensive Minds is here to keep you up to date on everything that’s going on in this strange world.