According to Yibencaijing (a FinTech media in China), a hacker interviewed recently said that there will be 99% of hackers turning their eye on cryptocurrency. They are in a completed industrial chain cooperating to collect information, hack where they aimed and finish ‘coin’ laundering. The core reason for them boldly doing this is that cryptocurrency is still in the gray zone, and many countries have not legitimized it. Newly-founded exchanges are their perfect target.

There are two ways in which they can steal cryptocurrency:

• Find the “pool” of the exchange and take the “coin” away;
• Find some user’s wallet’s account password and change the withdrawal address to their own.

Usually they only steal the mainstream cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, etc.

After the dirty work, they will cut off the network access of the wallet in which stolen cryptocurrency is stored until everything gets back to normal. Those bold ones will cash it out and even purchase real estate. In addition, ‘coin laundering’ among several exchanges is the latest trend with these hackers or crypto thieves. A hacker with the pseudonym of Air said that as the cryptocurrency has a centralized trending, they are apt to attack those accounts of big guys in the exchange. It is estimated that in the second half of this year, this dark industry chain will be completely formed, by then 99% of users will fall into insecurity.

 “99% hackers have kept their eye on cryptocurrencies”, K, a hacker said.

They cooperate to collect information, hack where they aimed and finish the final ‘coin’ laundering step. Hackers and moles in crypto exchanges are conspiring together. In this gathering of wealth, all the people are extremely crazy and dropping their masks…

Some are unwilling to call the police

Cryptocurrency exchanges have been frequently hacked recently, leading to the theft of a large number of cryptocurrencies and great loss. The Japan-based Coincheck lost $500 million and $195 million hacked in the Italy-based BitGrail. After such big accidents, there must have big price swings for cryptocurrency. For bitcoiners, they are threatened by bitcoin price volatility as well as hackers.

“In fact, almost all the exchanges have suffered hacker attacks. Many have been involved in security incidents, but most of them choose to hold it back and close door to handle their own problem.” K said, in this way, the stolen cryptocurrencies are actually far more than that reported.

This crisis will explode soon in the next six months.

“The main reason for that is 99% hackers, regardless of what they used to do are turning to the battlefield of cryptocurrency. This trend has started in the second half year of 2017 along with the surge of bitcoin price. ”

This dark industry is highly lucrative. but cryptocurrency is still  in the grey zone, and many countries have not legitimized it. Even if the cryptocurrency is stolen, many will not file a case and the police will not get themselves in such a trouble.

K said, crypto exchanges, mining pools and individual accounts of whales are undoubtedly their target. Once you make (hack) it, you can live the rest of your life on it.

There are currently 8,500 crypto exchanges in the world, and most of them are newly founded in late 2017. Exchanges founded for about three months are their target.

Hackers’ unique communication system

To attack big exchanges, hackers usually work together. They assemble in secret, take each other’s advantage and cooperate seamlessly. Air recently assembled over 10 hackers, and is prepared to launch an attack on a top-ranked exchange with action code called “OK soldiers”.

“We never met before, and we do not communicate with each other openly on social networks,” Air said.

How do they keep in touch and take action together?

“We have a unique communication system.” Air said.

They are releasing encrypted strategic arrangement via some public social networking software. For example, a Weibo user may release an encrypted password, no one will give it a care for it seems to be meaningless nonsense. But his hacker fellows have this plan scheduled in advance, see this weibo and decode their ‘secret’.

Small exchanges’ dirty secret

“Some small exchanges will come to us. They ask us to steal their cryptocurrency and then have a share of the dirty money.”

Several months ago, K successfully stole 300 bitcoins working with a mole in an oversea exchange and they split it. Why only 300 bitcoins? Cauze they know the exchange dare not call the police for only 300 bitcoins but only swallow the bitterness.

“99% of users will fall into insecurity, “

Air said, at that time no one can be immune to the explosion of this great dark power…