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TOP 5 most famous cryptocurrency crimes

Jun 19, 2019104

Despite the security of the blockchain, the crypto world is full of reports of exchane hacks and currency thefts. We offer a list of the most famouse frauds in this area.


1.Bankruptcy of Mt.Gox Exchange

In 2013, Mt.Gox exchange performed about 50% of all Bitcoin transactions, but in the spring of 2014 more than 850,000 Bitcoins disappeared from the accounts of the exchange's clients. This led to a trading halt and then to the bankruptcy of Mt.Gox. At first, the reason for the incident was called fraudulent actions of the management of the exchange, but later it turned out that the exchange was hacked. As a result, former director Mark Carpales served 10 months in prison and was released on bail.

 

2.Criminal Silk Road

The Online community Silk Road has become one of the largest electronic sites for the sale of drugs. In addition, there it was possible to order fake documents or find a killer. Naturally, all trade was exclusively for Bitcoins. The site ceased operations in October 2013 when the FBI closed Silk Road and seized 144,000 bitcoins, and its founder, Ross Ulbricht, was charged with drug trafficking, laundering of money, hacking and sentenced to life imprisonment.

 

3.Bitfinex Exchange Hacked

In 2016, hackers stole nearly 120,000 bitcoins from the world's largest exchange Bitfinex, where Bitcoin was traded against the dollar. Trading was immediately suspended and accounts frozen, but it did not save the situation. The exchange tried to rehabilitate itself by announcing a reward for help with refunds, and even wanted to make a deal with the hackers. In January 2017, some of these funds came into motion and were found on other trading platforms.


4.Vulnerability of The DAO

The startup attracted 150 million USD and promised to create a crowdfunding platform based on the smart contracts system and Ethereum technology. However, smart contracts did not save the project from hacking and the loss of 40% of the collected funds. The reason was the bug, which allowed people to repeatedly receive Ethereum. As a result, The DAO ceased to exist.


5.Stealing Tether Tokens

In the fall of 2017, the attackers managed to hack into the Tether system and steal 30 million USD. The company's administration confirmed this fact, but a number of users did not believe the explanations, suspecting Tether management of cheating. As a result, some cryptocurrency portals have blacklisted this blockchain project.

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