The recent Upbit hack is a stark reminder of the danger of storing your crypto on an exchange. We explored seven major hacks that happened this year, each one bolder than the last. The lesson? Not your keys, not your crypto.
Cryptopia went dark on Jan. 15 after it discovered a “security breach” with “significant losses.” It stayed dark, and mostly silent, through the rest of January and deep into February. The site claimed it could not comment during the police investigation of the estimated $16 million hack.
It is not clear how Cryptopia was hacked, but investigators discovered in August that Cryptopia had been pooling users’ funds in a catchall wallet. The New Zealand exchange tried to right its ship after the hack and even briefly reopened trading services in March. But the revival was not meant to be: the exchange went into liquidation in May and 10 days later filed for bankruptcy.
DragonEx of Singapore lost an “undisclosed” amount of user funds in a March 24 hack. It initially declined to estimate how much but days later it revealed over telegram that it lost $7 million in the security breach. DragonEx did not appear to promise users a full refund, as other exchanges generally did in 2019. Instead, it said it was working on a “preliminary compensation plan” that would reimburse victims’ lost funds in Tether or Dragon Token equivalent. Read More...