The Crypto Basic

In 2020, the world has changed. After the initial shock of the pandemic and the subsequent collapse of markets, people adjusted to the new isolating reality. One of the fundamental changes in everyday life was the mass transition to remote work.

Against this background, the number of cyber crimes has significantly increased. As the researchers predict, the number of attacks will continue to grow.

The cryptocurrency community and companies have long been targeted by hackers. According to analysts, Until October 2020, the blockchain industry has lost over $13.6 billion in attacks since 2012.

Unfortunately, the hacking of Bitcoin exchanges and wallets is far from new and in year 2020, amid the boom, DeFi projects have become a favorite target of hackers. Cipher Trace estimates that by November 2020, attackers had stolen almost $100 million from DeFi protocols.

We will tell you about the main hacks of 2020, because of which users lost millions of dollars, and some companies closed down altogether.

  • The biggest hack of the year was the attack on the cryptocurrency exchange KuCoin.
  • Most often in 2020, DeFi protocols suffered from intruders actions. They attacked several users using instant loans.
  • Besides hacking protocols and platforms, cybercriminals actively traded user data.

KuCoin — one of the largest hacks in history (damage — $280 million)

Initially, the damage was estimated at $150 million, but later, analysts changed the estimate to $280 million. Hackers who hacked KuCoin laundered funds through mixers and the decentralized exchange Uniswap. By November, KuCoin returned most of the stolen funds to users and restored the deposit and withdrawal of coins.

Dforce Hack (damage — $25 million)

However, the attacker made a fatal (for him) mistake — he inadvertently disclosed his identification data by accessing decentralized exchanges directly without using the distributed file system IPFS.

As a result, Singapore law enforcement officers caught a hacker, and he had to return all the stolen funds.

Harvest Finance: “engineering error” at a cost of almost $20 million (damage — $19.8 million)

Representatives of the project explained the hacker attack as an “engineering error.”

End of Pickle Finance (damage — $19.7 million)

Read Complete Story:

Defi platform Pickle Finance hacked, $ 20 million DAI stolen

Eminence: another project of Andre Cronje in the spotlight (damage — $15 million)

Serial attacks on BZX (damage — $11.6 million)

Another attack occurred in September 2020. The total amount of damage was more than $11.6 million.

Exmo Lost 6% of their funds (damage — $10.5 million)

Hacker hacked founder of Nexus Mutual Hugh Karp (damage — $8 million)

Read More Details of NXM hack:

NXM Hack Update-Hugh Karp, Founder Of Nexus Mutual Spoke About The Recent Hack Of His Wallet

“Black Thursday” for MakerDAO (damage — $8 million)

The attack on the Dollar stablon Origin (damages — $7 million)

Here’s our detailed compensation plan for $OUSD holders. We appreciate everyone’s patience as we worked to develop a detailed plan for providing compensation equal to 100% of the value deposited to OUSD at the time of the exploit.


– Origin Protocol (@OriginProtocol) December 12, 2020

Value DeFi hack (damage — $6 million)

The developers offered the hacker to keep the coins worth $1 million and return the rest. The attacker ignored the offer, but partially compensated for the losses to users. For example, the hacker returned 50,000 DAI to a nurse who claimed that she had lost all her savings.

DeFi projects Akropolis, Cheese Bank and warp faced similar attacks this year. Finance Experts believe that hackers will continue to use instant loans to hack DeFi projects in the future.

Hacked Eterbase (damage — $5.3 million)

Bitcoin wallets under threat — attack on Cashaa (damage — $3.1 million)

In February 2020, the Altsbit cryptocurrency exchange was hacked. And although the stolen amount seems relatively small ($285,000), it forced the exchange to close.

In the summer, the DeFi projects Balancer, and Opyn were hacked. Hackers also attacked cryptocurrency platforms hosted by GoDaddy. They also stole 1,400 BTC from an investor using an old version of the Electrum wallet, and, according to media reports, hacked 2,000 accounts of the cryptocurrency-friendly Robinhood platform. Attackers actively traded user data

At the end of the year, the information of one million users of Ledger bitcoin wallets was publicly available.

Read full story: Data of More Than 270,000 Ledger Wallet Users Leaked

Will cybercriminals attacks on the cryptocurrency industry in 2021 continue? Experts believe that yes. However, leading cryptocurrency projects do not wait for hacker attacks — they devote more and more time to their security systems, and experts issue reports and recommendations on methods of protection and counteractions.

In the future, companies that put the user funds security and user data as their top priority will take large crypto market share.

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Top Crypto Hacks 2020: DeFi, Exchanges and Individuals | by The Crypto Basic | The Capital | Jan, 2021

by Benjamin Hartman
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