Cryptocurrency, as a medium of exchange with some similarities to normal currencies, is the first decentralized global currency base in human history. Cryptocurrency has a hundred percent electronic footprint and is secured via Blockchain technology. While Blockchain technology offers significant security; like all security mechanisms, it fails without additional layers of security around it.
Cryptocurrency thefts from 2015 – 2017:
- January, 2016 – 13,000 BTC; 3,000,000 Litecoin ($5.8M on Cryptsy)
- March, 2016 – 81 BTC ($33k on COINTRADER); 469 BTC, 5,800 ETH 1,900 Litecoins ($230k on ShapeShift)
- May, 2016 – 250 BTC, 185,000 ETH, 1,900 Litecoin ($2.14M on gatecoin)
- June, 2016 – 3,500,000 ETH ($53M on DAO)
- July, 2016 – $85k on Steemit · August, 2016 – 119,756 BTC ($65M on Bitfinex)
- October, 2016 – 2,300 BTC ($2.6M on Bitcurex)
- February, 2017 – $444,000 on erocoin
- July, 2017 – 153,037 ETH (Parity); 37,000 ETH ($7M on COINDASH); $1M on Bithumb; $8.5M on Veritaseum
- August, 2017 – 1,500 BTC ($500k on enigma)
A variety of reasons exists for cryptocurrency hacks. Some hacks are enabled by bugs in cryptocurrency software, hacked storage wallets due to phishing scams, DAO vulnerabilities, vulnerabilities in multigeniture wallets, website hacks, compromised contact lists, the reasons are numerous and seemingly multifaceted.
However, in all cases publicly documented, proper cyber security architecture, planning, and best practices could have prevented, or made prohibitively more difficult, the enabling hack and subsequent theft.
Optium Cyber Systems Inc offers a comprehensive consulting approach, combined with industry-leading managed security solutions, to greatly reduce the risk of operating in the Cryptocurrency market.
Contact Optium today to learn more: