Crypto Exchanges are Mostly Scammers - List of all Hacked Exchanges [2011-2018] – Chapter[2.13] R[27]

Unlike local fiat currency exchangers in your town or city which are thoroughly regulated by financial authorities and which abide by all KYC/AML policies. Currency exchanges are properly audited and the State Bank keep a firm eye on their activities. In short their exists check and balance and they provide full customer protection.

complete List of hacked bitcoin exchanges

Astonishingly in crypto-world, all you need to create a digital currency exchange (DCE) company is a fancy website, social media and advertising campaign and a dev. team of no more than 2-4 people.

For those who may not know what a cryptocurrency exchange or DCE is, its where you buy or sell bitcoin or other cryptocurrencies. You can also store bitcoins with an exchange.

Cryptocurrency exchange is the place where people give their hard earned money for an exchange with worthless computer bits. This is where miners sell computer bits to a greater fool as termed by Bill Gates. Payment is done via credit cards, PayPal or even bank wire transfers.

Creating a Bitcoin exchange is so easy that you can build one even if you are not too tech savvy or have limited capital to invest in software and infrastructure. It is similar to how you setup a wordpress blog!

There are software packages provided by companies such as BTCTrader and Alphapoint that offers a fully branded, customized, and managed white-label service that offers you the ability to start your local bitcoin exchange in less than 20 days.

How much budget does it take to setup your bitcoin trading platform, well read it for yourself what the guys at BTCTrader are asking for:

BTCTrader provides the entire exchange platform and
maintenance services in exchange for a percentage
of the trading fees
collected by our partners.

An initial one-time licensing fee is also expected
from the partner.

All you need to pay them is a small one-time license fee and a share of trading fees that you collect from your trading users.

No you don’t need to spend thousands of dollars in security, programming, penetration testing, regulation and insurance. Just setup a trading website with BTCtrader and start selling worthless bits to people willing to buy them!

There are three ways in which a scammer can expect high returns by setting up a crypto-exchange site:

  1. A miner, can easily sell his branded crypto via the exchange and get people’s hard earned money in exchange for his worthless bits.
  2. A non-miner, can setup a ponzi scheme or pyramid scheme, promising high returns on BTC deposits.
    He can gather as much audience as possible without allowing funds withdrawal for at least four months. Once enough funds are gathered, the scammer can shut down the site after transferring all funds to his BTC addresses.
    No authority can catch him thanks to anonymous nature of the cryptocurrency transactions.
    Example: Bitconnect, all funds gone!
    Ethrade.org, 100 BTC gone!
  3. OR one can simply offer crypto-trading services and become a large exchange firm. Once enough funds have been deposited, get the exchange hacked and some funds stolen. In the end just play the victim game!
    Example: Mt. GOX, $450 million stolen, 850,000 Bitcoins disappeared!
    Bitfinex, $72 million stolen, 119,756 Bitcoins disappeared!

complete List of hacked cryptocurrency exchanges

To give you an idea of how insecure this cryptocurrency exchanges are, I have compiled the following list.

Complete List of Hacked Cryptocurrency Exchanges (2011-2018):

Date Exchange Name Attack Type Coins Stolen Value (USD)
2018
July
KICKICO (ICO) Security breach KICK $8,000,000
2018
July
Bancor
(Decentralized
Exchange)
Security breach Ether $12,000,000
2018
June
Bithumb Security breach altcoins $30,000,000
2018
June
Coinrail Security breach altcoins $40,000,000
2018
April
Foxbit
(Exchange)
Security breach 58 BTC $540,000
2018
April
CoinSecure
(Exchange)
Security breach 438 BTC $3,300,000
2018
Feb
BitGrail
(Exchange)
Security breach 17,000,000 NANO $195,000,000
2018
Jan
CoinCheck
(Exchange)
Security breach NEM $534,000,000
2016 Aug Bitfinex (Exchange) User wallets/
Inside job
119,756 BTC $72,000,000
2016 May Gatecoin (Exchange) hot wallet/
Security breach
250 BTC + 185,000 ETH $2,000,000
2016 Mar ShapeShift (Exchange) inside job 557 BTC $230,000
2016 Mar Cointrader
(Exchange)
hot wallet/
Security breach
81 BTC $33,600
2015 Feb Bter
(Exchange)
cold wallet/
Inside job
7,170 BTC $1,750,000
2015 Feb Exco.in (Exchange) cold wallet/
Inside job
2,000 BTC $488,145
2015 Feb Kipcoin (Exchange) cold wallet/
Inside job
3,000 BTC $690,000
2015 Feb 796 (Exchange) cold wallet/
Inside job
1,000 BTC $230,000
2015 Jan Bitstamp (Exchange) hot wallet/
Security breach
18,866 BTC $5,263,614
2014 Dec Blockchain.info (Wallet) user wallets (bug, R values) 267 BTC $101,000
2014 Dec Mintpal (Exchange) inside job 3,894 BTC $3,208,412
2014 July Cryptsy (Exchange) inside job 13,000 BTC + 300,000 LTC $9,580,000
2014 Mar CryptoRush (Exchange) cold wallet/
Inside job
950 BTC $782,641
2014 Feb Mt.gox (Exchange) hot & cold wallets/
Inside job
850,000 BTC $450,000,000
2013 Nov PicoStocks (Exchange) cold wallet/inside job 6,000 BTC $6,009,397
2012 Sep Bitfloor (Exchange) hot wallet/ Security breach 24,000 BTC $250,000
2012 May Bitcoinica (Exchange) hot wallet/
Security breach
18,000 BTC $88,200
2011 Oct Bitcoin7 (Exchange) inside job 5,000 BTC $25,000
When people put their trust and life savings in the hands of scammers and then dream of becoming rich, they ultimately end up signing petitions for help.

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