An independent examiner has revealed shocking details surrounding the inner workings of Celsius – a crypto lender that filed for bankruptcy in July 2022. The examiner claimed that Celsius did not operate by the business model that it presented to customers. He likened it to a Ponzi scheme, much like FTX – a company that happened to have used the same accounting software: QuickBooks. The Truth About CEL Token Per a filing from examiner Shoba Pillay on Tuesday, Celsius had…
What are Crypto Hacks?
Cryptocurrency hacks are a type of cyberattack in which a hacker targets a cryptocurrency exchange, wallet, or other cryptocurrency-related services to gain unauthorized access to users’ cryptocurrency holdings. These hacks can occur in a variety of ways, including:
- Phishing attacks: Hackers send fraudulent emails or texts that appear to be from a legitimate company to trick users into entering their login credentials or personal information.
- Malware attacks: Hackers install malware on a user’s device to access cryptocurrency-related accounts or steal sensitive information.
- Vulnerability exploitation: Hackers exploit vulnerabilities in a cryptocurrency-related service to gain unauthorized access.
- Insider attacks: In some cases, hacks are carried out by employees of a cryptocurrency-related service who have insider knowledge of the company’s systems and can use this knowledge to steal users’ cryptocurrency.
- Physical attacks: In rare cases, hackers have physically stolen hardware (such as laptops or hard drives) that contain users’ cryptocurrency private keys.
How to Protect Yourself
Here are some steps you can take to protect yourself against cryptocurrency hacks:
- Enable two-factor authentication (2FA): This adds an extra layer of security to your accounts by requiring you to enter a code sent to your phone or email in addition to your password.
- Use a hardware wallet: A hardware wallet is a physical device that stores your cryptocurrency’s private keys offline, which makes it much more difficult for hackers to access them.
- Use strong and unique passwords: Use a password manager to generate strong, unique passwords for each account and enable password protection for your hardware wallet.
- Be wary of phishing attacks: Don’t click on links in emails or text messages you weren’t expecting, and check the website’s URL before entering your login credentials.
- Keep your software updated: Make sure to update your operating system and any other software you regularly use, as these updates often include security patches.
- Use a reputable cryptocurrency exchange: Do your research and choose a reputable exchange with a good track record regarding security.
- Keep your cryptocurrency holdings to a minimum: If you don’t need to hold a large amount of cryptocurrency, consider keeping only what you need for current transactions in your online accounts and storing the rest in a hardware wallet.
Popular Crypto Hacks
Here are some examples of popular cryptocurrency hacks:
- Mt. Gox: In 2014, the Mt. Gox exchange, the largest Bitcoin exchange in the world, was hacked, and 850,000 Bitcoins (worth around $450 million at the time) were stolen. This hack was later found to have been carried out by exploiting a vulnerability in the exchange’s software.
- Coincheck: In 2018, the Japanese cryptocurrency exchange Coincheck was hacked, resulting in the theft of $530 million worth of cryptocurrency.
- Cryptopia: In 2019, the New Zealand-based cryptocurrency exchange Cryptopia was hacked, resulting in the theft of around $16 million worth of cryptocurrency.
- Bitfinex: In 2016, the cryptocurrency exchange Bitfinex was hacked, and $72 million worth of Bitcoin was stolen.
- Binance: In 2019, the cryptocurrency exchange Binance was hacked, resulting in the theft of around $40 million worth of cryptocurrency.
These are just a few examples, and there have been many other cryptocurrency hacks over the years. It’s important to note that while cryptocurrency-related services have become much more secure over time, hacks are still a risk, and it’s important to take steps to protect your cryptocurrency holdings.
Cryptocurrency-related services and exchanges have become much more secure over the years, and many of the large, well-known ones have robust security measures to protect against these attacks. However, it’s still essential to be vigilant and take steps to protect your cryptocurrency holdings.
An Overview of Different Cryptocurrency Scams
Cryptocurrency scams are fraudulent schemes that are becoming increasingly common as the popularity of cryptocurrencies continues to grow. They can take many forms and are often designed to appear legitimate investment opportunities or exchanges. Unfortunately, these scams can cause significant financial losses for individuals and harm the reputation of the cryptocurrency industry as a whole. It is crucial for anyone considering investing in cryptocurrencies to be aware of the various types of scams and to take steps to protect themselves.…
What Are Crypto Data Aggregators?
Crypto data aggregators gather data from multiple sources to provide comprehensive and real-time information about the cryptocurrency market. They pull data from various exchanges, trading platforms, and other sources to centralize the information and present it in a user-friendly format. The data includes cryptocurrency prices, trading volume, market capitalization, news, and other relevant information. Crypto data aggregators use algorithms to clean, process, and normalize the data to ensure accuracy and consistency across multiple sources. The information is then presented in…
What Is CoinGecko?
CoinGecko is a cryptocurrency data aggregator and tracking platform. It provides information and insights on the cryptocurrency market, including price, volume, trading activity, developer activity, and community growth. How CoinGecko Works Data Aggregation: CoinGecko collects crypto data from various cryptocurrency exchanges, wallets, and blockchains to create a comprehensive database of cryptocurrency information. Calculation of Metrics: CoinGecko calculates several metrics, such as market capitalization, trading volume, liquidity, and community growth, to provide a comprehensive overview of the cryptocurrency market. Display of…
What Is CoinMarketCap (CMC)?
CoinMarketCap (CMC) is a website that provides information about the cryptocurrency market and tracks the capitalization of various cryptocurrencies. It was founded in 2013 and has become one of the most popular cryptocurrency data providers. CMC aggregates information about the prices, volume, and market capitalization of cryptocurrencies from various exchanges and calculates the average value. Furthermore, the website displays this information in real-time, giving users a comprehensive overview of the cryptocurrency market. CMC tracks over 22,000 cryptocurrencies, including Bitcoin, Ethereum,…
What Are Crypto Pyramid Schemes?
A crypto pyramid scheme is a fraudulent investment scheme where returns are paid to existing investors from funds contributed by new investors. It's called a "pyramid" because it typically has many new entrants at the bottom, with each layer representing fewer investors. Example: John starts a pyramid scheme and invites five friends to invest 1 Bitcoin each. John promises to return 2 Bitcoins to each participant in a month. John needs 10 Bitcoins to fulfill his promise, so he invites…
What Is a SAFE (Simple Agreements for Future Equity) in Crypto?
Simple Agreements for Future Equity (SAFE) is a financing instrument used in the crypto and start-up communities to secure early-stage funding without giving up ownership or control. A SAFE is a contract between a startup and an investor that promises the investor a certain amount of equity in the company in the future in exchange for a direct cash investment. The terms of the SAFE, including the valuation of the company and the equity to be received, are agreed upon…
What Are Crypto Institutional Investors?
Crypto institutional investors are large financial institutions that invest in cryptocurrencies, such as Bitcoin and Ethereum. They play a crucial role in providing stability and growth to the crypto market, helping to bring more mainstream recognition to cryptocurrencies as a legitimate asset class. Crypto institutional investors typically comprise large investment banks, hedge funds, pension funds, and endowments. They bring significant resources and investment expertise to the crypto market, providing the liquidity and capital required for the market to grow and…
What Is Automated Crypto Trading?
Automated Crypto Trading is a type of trading that uses software programs to automate the buying and selling of cryptocurrencies on the market. It uses algorithms to analyze market data and execute trades based on predefined strategies. The software can be programmed to scan the market and make trades based on specific conditions, such as price changes or trends. It also allows for backtesting and optimization of trading strategies. In addition, the trades are executed automatically, reducing the need for…
What is Genesis Mining in Metaverse?
Genesis mining in the metaverse refers to the initial creation and distribution of virtual assets within a virtual world or metaverse, such as virtual real estate or virtual currency. The creators or developers of the metaverse often control this process. It may involve using blockchain technology to ensure the security and integrity of virtual assets. The term "genesis mining" describes the initial creation and distribution of these assets, similar to mining for precious metals or other resources in the physical…