300,000 Hackers Are Eyeing on Cryptocurrencies Globally
In June 2013, a hacker with the pseudonym Hacker made $8,000 in one day by selling bitcoins hacked from several crypto exchanges after he found vulnerabilities in them.
The price of one bitcoin hit an all-time high of the year at $1,242 in late 2013, higher than the price of an ounce of gold back then. For this, bitcoin is called the “digital gold”.
Since then, bitcoin-like cryptocurrencies underpinned by blockchain thus became the favorite targets of hackers.
According to a recent report by Tencent, blockchain security issues have led to an economic loss of over $2.7 billion in the first half of 2018, among which, $1.1 billion worth of cryptocurrency has been stolen, as per the report from cybersecurity company Carbon Black.
Crypto-related cyberattacks have increased fivefold from 2013 to the first half of 2018, while the number in the entire year of 2018 is predicted to increase about tenfold, according to figure from Tencent.
“Of the worldwide hackers we’re tracking, more than 300,000 individuals or organizations are attacking on blockchain. That means, 90% of hackers have laid their eye on cryptos and take it as dollar printing.” Founder of China-based security company Knownsec, Zhao Wei, said.
The company disclosed its audit result of 39,548 smart contract code based on Ethereum. It showed that as of August 10, 2018, a total of 24,791 (62%) contracts were uncovered to involve in design defects.
A similar report from security firm Hosho also revealed the prevalence of smart contract bugs. The code auditor has audited the smart contracts of the projects raising $1 billion totally in amount. 25% of the projects it has audited were found to contain critical bugs, and some 60% of them had at least one security issue.
These prevalent vulnerabilities are opening the door for those hackers.
Malicious crypto mining attacks see a whopping 956% increase from the first half of 2017 to the first half of 2018, as IT security firm Trend Micro published days ago.
Bitcoin fell below $6,000 again days ago from a high of around $20,000, and the total market cap of the global cryptocurrencies has fallen to around $240 billion from more than $650 billion at the start of the year.
Frequent blockchain security incidents have helped fuel the overall bear market for cryptocurrencies.