The year 2018 has become difficult for most cryptocurrency exchanges and the industry as a whole. As billionaire investor Warren Buffett likes to say that "only at low tide is it revealed who swam naked."
Every time an attack occurs on any stock exchange, cryptocurrency rates fall. Let's consider the loudest cases of falling of cryptocurrency exchanges in 2018, which are hardly worth trusting your money.
Cobinhood, Taiwan
The Taiwan Cryptocurrency Exchange Cobinhood was one of the most prominent examples of failure last year. In 2017, the company collected more than $ 15 million during the ICO, encouraging potential investors and promising them endless opportunities, as well as high liquidity of tokens .
Investors who took this risk became victims of the classic pump & dump scheme: initially the sale price of tokens was artificially inflated more than 40 times, and then dropped 100 times, and now it does not exceed 20%. from the initial price. The stock exchange has completely degraded, and the listing of Cobinhood is just as indicative.
Paxful, United States
This is a p2p market that connects buyers with sellers. However, there are reports that the Paxful cryptocurrency exchange is engaged in deception, and that they have “their own” hackers who steal money from user accounts.
BitGrail, Italy
Earlier this year, this Italian cryptocurrency exchange reported the theft of 17 million Nano tokens (XRB) worth more than $ 170 million. BitGrail Exchange declared itself bankrupt. Other currencies on BitGrail were not affected.
BitGrail owner Francesco Firano believes that this was due to an error in digital currency technology, while representatives of Nano say that this theft could have occurred because of the previously unknown loopholes of the exchange itself.
Coincheck, Japan
In late January 2018, hackers infected Coincheck employees with a virus that allowed them to perform one of the largest hacks with theft in the history of cryptocurrency. NEM coins worth more than $ 548 million were stolen. The virus entered the exchange systems through an email that was opened by a Coincheck employee.
Since then, the exchange has changed owners, and a number of measures have been taken to improve its systems. It seems that now the stock exchange is getting better.
Bithumb, South Korea
In June 2018, the South Korean cryptobirth Bithumb lost more than $ 32 million in cryptocurrency, causing a significant negative reaction in the media. After that, the site was forced to stop working, and compensation was promised to all affected users.
Coinrail, South Korea
Also last June, the Coinrail cryptocurrency exchange was hacked, which resulted in the loss of ICO tokens of a number of projects, such as NPXS, Aston X, Tron and Dent, totaling more than $ 40 million. However, the exchange did not announce any intentions compensate users.
WEX, Russia, Cyprus
The financial problems of this platform began in July 2018. WEX, the heiress of the Russian BTC-E, conducted a multi-stage operation to withdraw funds from users. After financial problems, a message appeared that the WEX Exchange would be closed.
The volume of user losses on BTC-E and WEX amounted to approximately $ 100 million. Now the address wex.nz is simply not available, as the New Zealand Domain Names Commission (DNC) suspended the site "for fake registration data."
Zaif, Japan
Another Japanese cryptobirge, which has become a victim of hackers – even despite strict control and security measures. The lessons of Coincheck did not do her good, and the exchange paid a high price for it.
On September 14, 2018, hackers gained access to cryptocurrency funds stored in a hot Zaif wallet and successfully seized BTC , BCH and MONA for a total of more than $ 60 million before the stock exchange employees discovered an “unusual outflow of funds” from the exchange cryptocurrency wallet . As a result, it turned out that only 1/3 of the stolen funds belonged to Zaif.
Cryptopia, New Zealand
This New Zealand Exchange was robbed twice in 2019! Apparently, the security systems and experts of the exchange are so bad that in both cases the “purse wipe” took the hacker whole days, and no one could stop him. There were also statements that the loss of customer funds on this exchange occurred systematically.
Check out our list of reliable cryptocurrency sites – TOP-15 best cryptobirth for 2019 .
Publication date 05/02/2019
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