You may have been robbed by hackers in recent months – hundreds of millions of dollars’ worth of cryptocurrencies have been stolen – bitcoin and many others. This problem isn’t likely to stop soon either.
The latest major incident happened on the South Korean exchange – Coinrail announced Monday that cyber thieves had stolen about 30% of its currencies.
It was only a matter of time, are the thoughts of Joe Garza, a tax lawyer in Dallas Texas. These coins grew so fast that security could never have kept up.
Also, in January, Japanese exchange Coincheck reported that hackers took more than $500 million worth of crypto. So far, two bitcoin exchanges have gone fully bankrupt after similar breaches.
Yo Kwon, the CEO of Hosho Group, a Nevada-based company, says this is only the beginning of the crypto crime ring. He estimates that about 1/3 of all coin exchanges have been hacked in the past. More will follow.
With the standard for security being much too low, Bitcoin and other coins have struggled in 2018, especially after such a meteoric rise last year.
China actually tried to ban bitcoin and other currencies. On the other end, Japan recognized bitcoin as legal tender in 2017, but may be regretting it after the hacking spree. Here in the United States, the SEC is closely scrutinizing cryptocurrency.
Smaller investors more at risk as well. Those that take their savings and invest in one platform are vulnerable to losing their entire investment.
Investors like banks and hedge funds can probably be less concerned about these kinds of hacks, because they can spread their investment across platforms.
While certain experts say that crypto’s vulnerability to hacking is simply part of the newness of the idea, others say that bitcoin and others have leaps and bounds to take in order to create a safer marketplace.