For the past few years the crypto space has been so much infested by hackers who prey over ignorant unsuspecting victims and Big boys (Exchanges). Untold millions and millions of US dollars in crypto assets are lost, and I dare say on weekly basis. A huge junk of these assets are stolen from the exchanges: Mt Gox (in 2011), Bitfinex (in 2016) and Cryptopia(in 2019) are just but few examples of the many exchanges which lost funds to hackers.
Mt GOX HACK CASE
Because of extreme mismanagement and a lack of a contingency plan, around $473 million worth of bitcoins, which was around 7% of the world’s supply of bitcoins, were stolen from the system. On June 19, 2011, a strange thing happened. The value of bitcoin in Mt. Gox fell all the way down to one cent!
Image Courtesy: Wikipedia
BITFINEX HACK CASE
120,000 BTC which was worth $72 million back then was stolen. Bitfinex announced the hack on August 2, 2016.
CRYPTOPIA HACK CASE
over $16 million in stolen Ethereum (ETH) and ERC20 tokens was reported on January 14, 2019
PERSONAL EXPERIENCE
I am a victim of both the Bitfinex and Cryptopia. Bitfinex compensation was nothings less of joke. Cryptopia - fingers crossed, if what they have said so far, is anything to go by, I will recover all tokens. Yesterday when I locked into my account my tokens we still there, unfortunately I still have to wait until they can allow users to withdraw.
As if I have not learnt anything from these experience :
- I have about 0.1 Btc on Bitmex exchange where I have opened leverage trading position.
- I also have about O.5 Btc on Bittrex exchange to participate in the first Bittrex Initial Exchange Offering (IEO).
This goes to show that until there is a solution, we are going to continue to lose a lot of money through exchange hackers.
IS THERE A SOLUTION IN THE HORIZON?
Efin Decentralized Exchange just about to be launched might just be the solution the cryptospace has been waiting for. It is promising the look and fill of the centralized exchange like Binance, Kucoin .... however giving you back full control of to your private keys and your coins. They seems to have a good model that will address liquidity problem. checkout their website and video on their website: https://www.efin.cx/?rc=NUKRT
if register now and possible become a partner with the exchange you will get paid while other trade.
You may check out their:
Youtube: https://www.youtube.com/efinexchange
telegram Chat: https://t.me/efinexchange
gitthub: https://github.com/efinexchange
