Blockchain: Is it a hoax? 103
• Terra blockchain, which includes TerraUSD (UST) and Luna crashed
on 9 May 2022. On 7 May, an algorithm stablecoin called TerraUSD
(UST), which is supposed to maintain a USD 1 peg, started to go down
in value and fell to 35 cents on 9 May. Terra blockchain companion
token called Luna also fell from $80 to few cents by 12 May 2022.
This has been one of the biggest disasters in the crypto world so far.
About $45 billion were wiped out in just a matter of days.
• Mt Gox attack of 2014 is the most infamous cryptocurrency exchange
incident. Hackers stole 850,000 Bitcoins which were never recovered.
• Binance crypto exchange has been hacked multiple times and again
costing traders and investors tens of millions of dollars.
• In March 2014, the Flexicon crypto exchange was hacked and hackers
took away 896 Bitcoins.
• Poloniex exchange was shut down after losing 12% of its total Bitcoin
to hackers.
• In February 2020, an Italian cryptocurrency exchange called Altsbit
was hacked. They announced that almost all funds were stolen –
6,920 BTC, 23,210 ETH and other cryptocurrencies.
• In November 2019, a South Korean exchange Upbit suffered a massive
breach when hackers stole 342,000 ETH (worth $51 million at the
time of the hack).
• In November 2019, Vietnam-based cryptocurrency exchange called
VinDAX was hacked, and $500,000 worth of cryptocurrency was stolen.
• In July 2019, a Japanese exchange Bitpoint was hacked due to a security
breach. Hackers made off with over $30 million worth of cryptocur-
rency at the time of the hack. 1,225 BTC, 169 ETH, 1,985 BCH, 5,108
LTC, and 28 million XRP were stolen. Bitpoint was able to recover
about $2.3 million of the stolen crypto from overseas exchanges.
• In June 2019, a Singapore-based cryptocurrency exchange Bitrue
experienced a major hack to its hot wallet. Cryptocurrency worth $5
million was stolen from about 90 Bitrue users.
• In June 2019, a UK and Slovenia-based cryptocurrency exchange
called GateHuB suffered from a large hack where hackers made off
with $10 million worth of Ripple (23,200,000 XRP). It appears hack-
ers managed to access encrypted secret keys; however, it is still unclear
as to how exactly the hackers gained access to users’ funds.
• In May 2019, hackers managed to use a phishing scam and malware
to hack into Binance and ran off with $40 million worth of Bitcoin
(about 7,000 BTC).
• In March 2019, a Singapore-based crypto exchange DragonEx suf-
fered an attack in which hackers made off with $7 million worth
of cryptocurrency. The North Korean hacking group Lazarus was
responsible. It appears that hackers created a legitimate-looking fake
company and convinced DragonEx employees to download malware
onto their computers through Telegram and LinkedIn messages.