Is blockchain safe?

Since the birth of blockchain in 2008, its decentralized characteristics, security, openness and anonymity have been constantly promoted, among which security has been constantly emphasized. However, in the actual development process of the industry, we also see a lot of digital asset platforms run away, theft incidents.

There is no denying that blockchain has certain advantages in security, but it is by no means monolithic!

For example, 51% attacks, exchange hacks, SIM card exchange attacks, DeFi hacks, and frequent phishing attacks all pose threats to blockchain security. In addition, operating institutions and individuals can also bring various kinds of subjective uncertainty.

Therefore, blockchain technology is not perfect, the security of digital assets based on blockchain technology deserves attention, and all kinds of runaway and stolen lessons should not be ignored.

The international market

In 2014, the Mt Gox exchange was attacked, losing 850,000 BTC worth $450 million.

In June 2016, Ethereum founder V God posted on Reddit, "DAO has been attacked. Please suspend ETH/DAO trading, recharge and withdrawal until further notice." The event caused huge losses and eventually led to a fork.

e60eab72bafb01caeb6866632d318892In January 2018, BitConnect received a cease and desist order from the Texas Securities Commission, which identified it as a Ponzi scheme, due to deficiencies and misleading statements regarding user revenue transparency. BitConnect was shut down and the price of BitConnect coins plunged.

In 2018, hackers used a SIM card swap attack to break into cryptocurrency startup CrowdMachine and steal all of its reserve currency, worth $14 million.

In 2019, Gerald Cotten, the CEO of QuadrigaCX, once Canada's largest cryptocurrency exchange, died after years of using customer funds to enrich himself and his wife. A large number of customers' cryptocurrencies were transferred from Quadriga to accounts controlled by Cotton at a rival exchange. Ultimately hurt by its trading losses and incremental fees charged by these rival exchanges, the exchange owes its customers about C $250 million ($195 million) in cryptocurrencies and fiat currencies.

Ledger, a cryptocurrency wallet company, suffered a data breach in 2020 when attackers mailed customers "new" hardware wallets that could run malware when plugged into computers, ultimately leading to a breach of 270,000 messages.

In July 2020, the Twitter accounts of several well-known cryptocurrency exchanges and public figures, such as Binan and Sun Yuchen, were hacked and forwarded fraudulent messages on their accounts. Later, the accounts of musk, Bezos and other celebrities were hacked and used as a bitcoin double scam.

In August 2020, ETC was hit by a massive 51% attack that resulted in the reorganization of more than 7,000 blocks, equivalent to approximately 2 days of production and millions of dollars in losses.

On February 22, 2020, zhoujianfu, a bitcoin giant, posted on Reddit that 1,547 BTC and 60,000 BCH, worth about 260 million yuan, had been stolen by hackers. The stolen bitcoins were split into small amounts and poured into exchanges.

In October 2020, DeFi project Unicats stole users' $140,000 worth of Uniswap token UNI overnight through the back door.

In November 2020, DeFi project SharkTron anonymous developer Daniel Wood went missing, resulting in the loss of 366 million to 400 million TRX pieces, worth approximately $10 million.

In December 2020, DeFi Compounder.Finance's project side ran away, and the developer pulled $12 million from the project's liquid pool through a hidden backdoor written into the smart contract.

In May 2021, about 15 DeFi projects were hacked, Including Belt Finance, BurgerSwap, Julswap, Merlin, AutoShark Finance, Bogged Finance, Pancake Bunnny, Venus, FinNexus, bEarn Fi, EOS Nation, xToken, Rari Capital, Value DeFi, Spartan, involving Capital losses of nearly $300 million.

On August 10, 2021, the cross-chain protocol Poly Network was hacked, stealing at least $611 million in what was at the time the largest cryptographic-related hack.

In May 2022, a phishing attack on Seth Green resulted in the theft of four NFT's, including one BAYC, two MAYC and one Doodle. The phishing address beginning with 0xC8a0907 has sold all NFT's for a profit of nearly 160 ETH (approximately $330,000).

In May 2022, the twitter account of digital artist Beeple was hacked with a phishing link at the top of a tweet.

In July 2022, OpenSea, the world's largest NFT trading platform, reported a customer email data leak. An employee of its outside contractor, Customer.io, abused employee access to download email addresses provided by OpenSea users and subscribers and leaked them to third parties.

a23e1131bf18b99c50f6951edc780469The domestic market

In May 2018, Chen and others began to engage in pyramid selling crimes on the Internet by setting up the "Plus Token platform" and developing related applications. According to statistics, the platform duration, a total of ten thousand members of the development of more than 200 people, hierarchy as many as 3000 layers, the cumulative charge COINS, such as the etheric fang COINS millions of digital currency, involving a value of more than 400 one hundred million yuan, most of which digital currency be used for issuing member "pull head" reward, and part of the daily expenses by cash for XXL, etc and personal spending.

In February 2020, FCoin, a digital currency exchange, suspended service and destroyed more than 700 million FT coins held by the team. Zhang Jian, the founder, posted that the capital reserve could not be redeemed for user withdrawals, and the user capital scale of 7000-13000BTC could not be redeemed, about 70.99 million to 132 million US dollars.

In October 2021, Weihai investigated and dealt with Sun, Xu, Wei and others to publicize the "Creation Technology" virtual currency mining investment project, guided participants to operate through the "GT" wallet (GTW) APP, attracted the masses to participate in, seriously disrupted social and economic order, suspected of economic crimes.

On April 1, 2022, jay Chou posted on social media that his "boring ape" BAYC#3738 NFT had been stolen. The NFT was then changed hands several times within an hour, and at current prices, the stolen NFT was worth more than $500,000, or more than 3 million yuan.

In May 2022, TT Digital Zangong issued a notice saying that the platform could no longer operate and had dismissed its technical team.

In June 2022, Mirror Domain Data Collection crashed and ran away. Its entity control company, "Haikou Longhua District Mirror Domain Technology Studio", was established on May 31 and cancelled on June 22.

In June 2022, tiger symbol was revealed that all people could not withdraw money, suspected of running away.

In June, 2022, Light Art Was thunderstruck. Its actual control company foshan Hongtianchuang E-commerce Co., Ltd. was listed as abnormal operation in June, because the registered place could not be contacted.

On June 27, 2022, the official announcement of Hengsheng Electronics holdings said that due to the current state has not issued clear laws and regulations and policy documents in the field of digital collections, the business will be closed and withdrawn.

On July 1, 2022, Changsheng Digital Creation issued a notice to stop operation and decided to withdraw from the Digital collection circle, calling on all digital collection users to treat digital collections rationally and not to enter the collection easily.

On the evening of July 3, 2022, CyberArt Collections issued a statement, receiving a notice from The Shaanxi Provincial Industrial and Commercial Bureau, due to a series of policies issued by the relevant national departments on digital collections, as well as the relevant qualifications applied for review, temporarily closed the market.

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