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In less than ten years, hackers have stolen about $ 1.2 billion in bitcoin and ether, Bloomberg reports, citing Lex Sokolin, head of the fintech division of Autonomous Research LLP.
"It seems that hacking cryptocurrencies is a whole industry with an annual income of $ 200 million," Sokolin said. According to him, hackers have compromised more than 14% of the total amount of bitcoin and ether.
Susan Eustis, CEO of WinterGreen Research, said hacks involving cryptocurrencies such as bitcoin cost companies and governments about $ 11.3 billion in potential tax revenues from cryptocurrency sales and illegal transactions. These losses may increase as more and more investors try to take their place in the cryptocurrency market without thinking about the possible dangers and proper protection.
According to experts in the field of cryptocurrency, many users mistakenly consider the blockchain system to be secure because the entries in it are shared, making them difficult to change. However, in reality, they are not safer than any other software. This is largely due to the novelty of the technology. Currently, there are thousands of cryptocurrencies, each of which has its own vulnerabilities. Thus, while it can be more difficult to hack a blockchain than a retailer's database, the potential profits for attackers will also be much greater, the experts explained.
According to a report by researchers at the Institute of Electrical and Electronics Engineers, hackers can use the same bitcoins twice, although there is a mechanism in the system to prevent such situations. By carrying out a so-called "balance attack", hackers can delay network communications between groups of miners whose computers verify transactions on the chain.
“We have no evidence that such attacks have already been carried out with Bitcoin. However, we believe that some of the important characteristics of bitcoin make these attacks possible and potentially dangerous, ”the researchers noted.
Attacks on cryptocurrency exchanges have become quite common. Only in December 2017, the major Hong Kong cryptocurrency exchange Bitfinex and the South Korean exchange Youbit became victims of cyberattacks. The latter announced the closure and commencement of bankruptcy proceedings, as it suffered significant financial losses after several break-ins.
"It seems that hacking cryptocurrencies is a whole industry with an annual income of $ 200 million," Sokolin said. According to him, hackers have compromised more than 14% of the total amount of bitcoin and ether.
Susan Eustis, CEO of WinterGreen Research, said hacks involving cryptocurrencies such as bitcoin cost companies and governments about $ 11.3 billion in potential tax revenues from cryptocurrency sales and illegal transactions. These losses may increase as more and more investors try to take their place in the cryptocurrency market without thinking about the possible dangers and proper protection.
According to experts in the field of cryptocurrency, many users mistakenly consider the blockchain system to be secure because the entries in it are shared, making them difficult to change. However, in reality, they are not safer than any other software. This is largely due to the novelty of the technology. Currently, there are thousands of cryptocurrencies, each of which has its own vulnerabilities. Thus, while it can be more difficult to hack a blockchain than a retailer's database, the potential profits for attackers will also be much greater, the experts explained.
According to a report by researchers at the Institute of Electrical and Electronics Engineers, hackers can use the same bitcoins twice, although there is a mechanism in the system to prevent such situations. By carrying out a so-called "balance attack", hackers can delay network communications between groups of miners whose computers verify transactions on the chain.
“We have no evidence that such attacks have already been carried out with Bitcoin. However, we believe that some of the important characteristics of bitcoin make these attacks possible and potentially dangerous, ”the researchers noted.
Attacks on cryptocurrency exchanges have become quite common. Only in December 2017, the major Hong Kong cryptocurrency exchange Bitfinex and the South Korean exchange Youbit became victims of cyberattacks. The latter announced the closure and commencement of bankruptcy proceedings, as it suffered significant financial losses after several break-ins.
