The cryptocurrency market has not been able to keep itself safe from activities like fraud, Ponzi schemes, scams, and hacks. The world of cryptocurrencies has seen hackers stay one step ahead, despite the fact that many entities have taken several security measures to prevent funds from being stolen.
In July, a Japan-based cryptocurrency exchange, BITPoint, was hacked; an incident where hackers stole $32 million in crypto-assets, including $23 million in users funds. The exchange noted that the original hack was closer to “$28 million, while disclosing an additional $2 million stolen from other exchanges” that used BITPoint’s trading platform outside of Japan, bringing the total to $30 million. The hack left the it handicapped, with the exchange forcefully shutting down all its services. BITPoint will reimburse its affected customers in crypto.
BITPoint had previously faced administrative actions from Japan’s Financial Services Agency [FSA] for not having effective internal control systems established for AML/CTF, user protection and system risk management. It was given time till July 23, 2020, to prepare an improvement plan. However, they were hacked before any improvements could be deployed.
This hack was due to the lack of stringent security. However, BITPoint wasn’t alone as the world’s largest cryptocurrency exchange, Binance, was also attacked in May, despite having tough security systems. Hackers stole 7,074 Bitcoin [worth $40 million USD at the time of hack] in May. The value of this theft has since risen to $80 million, due to an increase in the price of BTC and according to research done by CipherTrace, was done using a multi-pronged takeover attack. Through this method, hackers obtained API keys, two-factor authentication codes, and other personal information from various users, including the one which had “very high net worth accounts.”
Binance CEO Changpeng Zhao noted this in his tweet to the community,