falling / hacks incidents of crypto exchanges
The falling of crypto exchanges is a concern for cryptocurrency users, as it can result in the loss of funds and damage to the overall reputation of the industry. There have been several instances of crypto exchanges falling over the years, with the most notable incidents including:
- Mt. Gox: In 2014, Mt. Gox, one of the largest cryptocurrency exchanges at the time, filed for bankruptcy after losing around 850,000 bitcoins, valued at around $450 million at the time. The incident was a significant blow to the industry and highlighted the need for better security measures.
- QuadrigaCX: In 2019, QuadrigaCX, a Canadian cryptocurrency exchange, filed for bankruptcy after its founder and CEO, Gerald Cotten, died unexpectedly. The exchange held around $190 million worth of cryptocurrency belonging to its customers, but the funds were lost due to Cotten’s sole control over the exchange’s cold wallets.
- Zaif: In 2018, Zaif, a Japanese cryptocurrency exchange, fell victim to a hack, resulting in the loss of around $60 million worth of cryptocurrency. The exchange later received financial assistance from its parent company to compensate its users.
- Cryptopia: In January 2019, New Zealand-based cryptocurrency exchange Cryptopia suffered a hack, resulting in the loss of around $16 million worth of cryptocurrency. The exchange later filed for bankruptcy, leaving its customers without access to their funds.
- Coinbene: In March 2019, Coinbene, a Singapore-based cryptocurrency exchange, reported a security incident resulting in the loss of an undisclosed amount of cryptocurrency. The exchange stated that it had taken measures to ensure the safety of its users’ funds.
- Bithumb: In March 2019, South Korean cryptocurrency exchange Bithumb suffered a data breach, with hackers stealing around 3 million EOS and 20 million XRP, worth around $19 million at the time. The exchange later reimbursed affected users and improved its security measures.
- Bitpoint: In July 2019, Japanese cryptocurrency exchange Bitpoint suffered a hack, resulting in the loss of around $32 million worth of cryptocurrency. The exchange later resumed operations after improving its security measures.
- Upbit: In November 2019, South Korean cryptocurrency exchange Upbit suffered a hack, resulting in the loss of around $50 million worth of cryptocurrency. The exchange later reimbursed affected users and implemented stronger security measures.
- Liquid Global: In August 2021, cryptocurrency exchange Liquid Global suffered a hack, resulting in the loss of around $90 million worth of cryptocurrency. The exchange later suspended its services and launched an investigation into the incident.
The falling of crypto exchanges can have a significant impact on the industry, with users losing access to their funds and confidence in the overall security of the industry. It is important for users to take steps to protect their cryptocurrency investments, such as using cold wallets and choosing reputable exchanges with strong security measures. Additionally, regulators are increasingly implementing stricter measures to protect users and prevent the falling of crypto exchanges.