There is no doubt that many in the cryptocurrency world are still reeling from the aftermath of Sam Bankman-Fried’s fiasco. In short, his actions cost FTX customers a frightening 8 billion US dollars.
But was it the biggest heist to ever impact the crypto industry? Let’s see.
Below, we’ll analyze the 5 biggest cryptocurrency heists so far, at least in terms of monetary value.
1. The Ronin Network
It’s estimated that thousands or maybe even millions of people were affected by the largest cryptocurrency hack in history. That unfortunate distinction belongs to the Ronin network, which is responsible for the popular play-to-earn game Axie Infinity.
Back in November of 2021, the Ronin team experienced a spike in the user base of Axie Infinity. The number of people using the app grew too large for the network, so the game developer turned to third-party assistance to manage the extra load.
Unfortunately, this also left open a security loophole that hackers used to access the network and steal more than $650 million worth of blockchain assets.
The attack took place more than four months after working with the third-party provider.
Although it didn’t impact the NFTs or the game’s native tokens, the loss of assets forced the game developers to change how the game works.
2. The Poly Network
The only other reported cryptocurrency attack to cost more than $600 million was the Poly Network hack. It was a disaster.
In August of 2021, the Poly Network, which was a system that allowed users to transfer tokens from one chain to another, was breached. The perpetrators stole a combination of Ethereum coins, other blockchain assets, and stablecoins that were distributed across three networks.
Perhaps the only silver lining of this story is that the funds were returned to the Poly Network over a span of 15 days after the attack. According to the hackers, their initial purpose was to highlight security exploits in the network, which they managed to leverage to conduct the attack.
3. Coincheck
The Coincheck attack is one of the oldest on this list, dating back to 2018.
Back then, it was by far the biggest crypto hack in history. And its magnitude was such that it remains one of the top 3 even today.
In 2018, Coincheck was one of Japan’s premier exchanges. However, in January of the same year, the company reported a loss of its native NEM coins that amounted to a whopping $534.8 million.
The cause? A security flaw led hackers to the hot wallet where the coins were stored.
While many of the coins in the exchange were lesser known, the sheer volume amounted to one of the biggest crimes that the crypto industry has ever seen.
4. Mt. Gox
The Mt. Gox exploit is the only hack from the 2010s to surpass the 150 million US dollar mark.
However, when it took place back in 2014, the $470 million dollars lost represented the biggest heist in the history of cryptocurrency.
Today, almost a decade after it was performed, this theft is the fourth biggest in history.
Mt. Gox was a Tokyo-based cryptocurrency exchange that was active for four years. At the peak of its power, the exchange was supposedly responsible for 70% of all Bitcoin transactions. People were connecting from all over the world to use it.
While the $470 million dollars is a huge amount of money, the reported loss of 650,000 to 850,000 coins that was reported lost would equate to a lot more money today.
5. The Wormhole Network
Finally, the Wormhole network comes with a “humble” loss of “only” 325 million US dollars.
In February of 2022, the decentralized finance platform Wormhole became a victim of what would become the second-largest crypto heist of that year.
The hackers used an obvious security flaw that had already been detected by the platform. However, the team at Wormhole did not update their live app version before releasing it, which resulted in a swift hack and millions of dollars lost.
In a very technical attack, the perpetrators managed to forge a digital signature. Then, they used the false credentials to mint the equivalent of 120,000 in WETH coins.
Despite the efforts of the Wormhole Network, the funds were never returned. The platform was forced to find the $325 elsewhere to cover its losses.
Quick Security Tips for Your Own Crypto Safety
While the biggest security breaches have resulted in hundreds of millions in losses, cybercriminals also target everyday users.
Here are some security tips you can implement to safe-keep your crypto assets:
- Keep the software on the devices you use for crypto trading updated;
- Use a reliable VPN to connect to the internet while transferring assets;
- Find a strong password manager;
- And implement two-factor authentication.
Conclusion
Although they have been industry-altering, the actions of the disgraced FTX founder don’t technically fall into the category of heists.
That dishonor is reserved for a special type of criminal that has no regard for their actions. We hope that the five examples above help you understand the impact of heists on the NFTs and cryptocurrency industry.
Be sure to use up-to-date security measures when trading or transferring your crypto data. Stay safe!
