Cryptocurrency was built on the promise of financial autonomy, decentralisation, and security. Yet, as the industry evolved, so too have the threats that plague it.
2024 alone saw over US$2 billion in stolen funds, reinforcing a stark reality: crypto is a prime target for hackers. The recent Bybit hack of US$1.5 billion in February shattered previous records, proving that even so-called “secure” cold wallets are not immune to attack.
The history of cryptocurrency comes littered with high-profile heists, each exposing critical vulnerabilities in exchanges, decentralised finance (DeFi) protocols, and security practices.
From the downfall of Mt. Gox to the multi-million-dollar Ronin Network exploit, these biggest crypto hacks incidents aren’t just footnotes in blockchain history. They’re case studies in the evolving tactics of cybercriminals and the hard lessons the industry must learn.
The 10 Largest Crypto Hacks in History
1.Bybit (US$1.5 Billion, 2025)
The biggest crypto hack in history occurred when Bybit’s cold wallet was breached. Hackers stole approximately US$1.5 billion in digital assets, primarily in Ethereum.
The attack involved a sophisticated social engineering tactic where malicious transactions were masked within benign ones, tricking signers into approving them. This allowed hackers to gain control of the cold wallet and transfer funds to their accounts.
Impact: The hack highlighted the vulnerability of even supposedly secure cold wallets to advanced social engineering attacks. Bybit quickly replenished its reserves through emergency loans and whale deposits, ensuring customer withdrawals could continue.
However, recovering the stolen assets remains challenging due to the complex laundering methods used by the attackers, believed to be linked to North Korea.
2. Poly Network (US$611 Million, 2021)
Poly Network suffered a DeFi smart contract exploit. The hacker returned a significant chunk of the stolen funds, highlighting the risks in DeFi protocols and the need for rigorous smart contract auditing.
Impact: This incident demonstrates that even large-scale hacks can lead to the recovery of funds when a hacker’s motives extend beyond financial gain. It also highlights the pressing importance of implementing robust security measures to safeguard DeFi platforms.
3. Ronin Network (US$625 Million, 2022)
Hackers breached the Ronin Network, stealing around $625 million worth of Ether and USDC. Investigators linked the theft to North Korea too.
Impact: The hack underscored the vulnerability of blockchain bridges and the potential involvement of state-sponsored hacking groups. It led to increased scrutiny of bridge security and calls for enhanced protection measures.
4. Coincheck (US$532 Million, 2018)
Japanese exchange Coincheck lost over US$0.5 billion dollars when hackers breached a hot wallet. The breach prompted Japan’s Financial Services Agency to tighten regulations.
Impact: The incident highlighted the risks associated with hot wallets and led to stricter oversight in Japan. Coincheck survived the hack but was later acquired by Monex Group.
5. Binance BNB Bridge (US$569 Million, 2022)
Hackers exploited a vulnerability in a cross-chain bridge, generating and withdrawing an additional 2 million Binance Coins (BNB). The breach was made possible by a bug in a smart contract, underscoring the urgent need for stronger security measures in blockchain technology.
Impact: This is one of the biggest crypto hacks that emphasised the importance of rigorous testing and auditing of smart contracts, especially in critical infrastructure like cross-chain bridges.
6. FTX (US$477 Million, 2022)
On the day FTX filed for bankruptcy, more than US$477 million was stolen from its crypto wallets. The hack was confirmed by FTX, warning users about malware risks.
Impact: The incident highlighted the vulnerability of exchanges during times of financial distress and the importance of maintaining robust security even in crisis situations.
7. Wormhole (US$325 Million, 2022)
The decentralised finance platform Wormhole was targeted, with hackers stealing US$325 million. The attack exploited an upgrade not deployed to the live project.
Impact: The hack underscored the risks associated with incomplete or improperly deployed updates in DeFi platforms.
8. DMM Bitcoin (US$305 Million, 2024)
Japanese cryptocurrency exchange DMM Bitcoin was attacked, resulting in a theft of 4,500 BTC. The North Korean Lazarus Group is suspected to be behind the theft.
Impact: The incident highlighted the ongoing threat from state-sponsored hacking groups and the need for enhanced security measures in cryptocurrency exchanges.
9. Mixin (US$200 Million, 2023)
The Mixin Network was hacked through its cloud service provider’s database, with thieves making off with about $200 million in cryptocurrencies.
Impact: The hack spotlighted the importance of securing third-party services and cloud infrastructure used by cryptocurrency platforms.
10. Mt. Gox (US$473 Million, 2011-2014)
Mt. Gox, formerly the largest Bitcoin exchange in the world, experienced a series of catastrophic hacks that led to its downfall. The first major breach took place in 2011, resulting in the theft of 25,000 bitcoins, valued at around US$400,000 at the time.
However, the most significant breach happened in 2014, resulting in the loss of approximately 750,000 bitcoins belonging to customers and the exchange itself, valued at around US$473 million at the time of the hack.
Impact: The Mt. Gox hack was a watershed moment for the cryptocurrency industry, highlighting critical vulnerabilities in early exchange infrastructure. It underscored the need for robust security measures, particularly for hot wallets, and the importance of regular security audits.
The incident led to increased scrutiny of cryptocurrency exchanges by regulators worldwide and sparked discussions about the need for insurance and better custodial practices in the crypto industry.
How Do Crypto Hacks Happen? Common Attack Vectors
Understanding how hackers execute these heists is crucial to preventing future breaches. The most common attack vectors include:
Exchange & Wallet Breaches
Even so-called “cold wallets”, long thought to be immune from hacking, are now vulnerable, as seen in the Bybit hack. This suggests attackers are refining methods to penetrate offline storage through compromised internal systems or supply chain attacks.
Smart Contract Exploits
DeFi platforms, which operate without traditional intermediaries, rely on smart contracts. However, poorly audited or vulnerable code allows hackers to exploit bugs and drain funds.
Private Key Theft
If a hacker gains access to a private key, they can take full control of a wallet. Key compromises often happen through phishing attacks, malware, or social engineering tactics.
Phishing & Social Engineering
Hackers frequently trick users into revealing credentials through fake websites, emails, or impersonation. These methods remain alarmingly effective, especially against newcomers to crypto.
Blockchain Bridge Attacks
Cross-chain bridges facilitate asset transfers between blockchains but are notoriously vulnerable to exploitation, as seen in the Ronin and Wormhole hacks. Weak security in bridge protocols makes them prime targets.
Who’s Behind These Heists?
Crypto hacks aren’t just the work of lone wolves; they often involve state-sponsored hacking groups, such as North Korea’s Lazarus Group, which finance government operations. Cybercrime syndicates operate like corporations, complete with research and development teams, continuously refining their attack strategies to launch some of the biggest crypto hacks.
Interestingly, white-hat hackers play a crucial role in identifying vulnerabilities, sometimes even before criminals can exploit them.
What Happens After a Crypto Hack?
Once a breach occurs, the stolen funds typically move through the dark web, are laundered through mixers, or get converted into privacy coins.
Can funds be recovered?
Rarely, but blockchain analytics firms like Elliptic and Chainalysis specialise in tracking stolen assets.
Do victims get reimbursed?
Some exchanges, like Jump Trading with Wormhole, have covered losses, but many do not.
How does it impact the market?
Large-scale hacks erode investor confidence and can trigger market-wide selloffs.
How to Protect Your Crypto Assets from Hackers
As cybercriminals evolve their tactics, safeguarding digital assets requires a proactive and multi-layered security approach. Both individuals and institutions must implement rigorous security measures to mitigate risks:
Use Multi-Signature & Multi-Factor Authentication (MFA)
Implementing multi-signature wallets ensures that transactions require multiple approvals, reducing the risk of a single point of failure. MFA adds another layer of security by requiring multiple verification steps before granting access.
Secure Your Cold Wallets Well
While cold wallets have traditionally been considered the safest option for storing crypto, the Bybit hack demonstrated that even offline storage is not foolproof. Ensure your cold wallets are properly secured, with private keys stored in physically secure locations and access strictly limited.
Diversify Your Crypto Assets Storage
Relying on a single storage method increases vulnerability. Distribute your holdings across various wallets: hot wallets for transactions, cold wallets for long-term storage, hardware wallets for offline security, and multisig wallets for added protection against unauthorised access.
Audit Smart Contracts
DeFi platforms are particularly vulnerable to exploits. Before engaging with any DeFi project, verify that its smart contracts have been extensively audited by reputable third-party firms. Avoid projects with unverified or hastily deployed code.
Be Wary of Phishing Attacks
Phishing remains one of the most common attack vectors in crypto theft. Always verify website URLs, never click on suspicious links, and use hardware-based security keys for additional protection against credential theft.
Cybercriminals often disguise malicious sites to mimic legitimate exchanges, so double-checking before entering login credentials is crucial.
The Future of Crypto Security
As the crypto industry continues to evolve, AI-powered cybersecurity tools are becoming increasingly crucial in detecting and preventing hacks.
These advanced systems use machine learning algorithms to identify anomalies in network traffic and user behaviour, often flagging potential threats before they can be exploited.
For instance, AI can monitor blockchain activity to detect unusual patterns that might indicate a phishing attempt or a smart contract exploit.
Companies like Elliptic are already leveraging AI-driven analytics to track stolen funds more effectively, improving the chances of recovery and reducing the impact of hacks on the market.
Additionally, AI-powered tools can analyse smart contract code to predict potential vulnerabilities, allowing developers to patch them before they are exploited.
By integrating AI into their security frameworks, exchanges and DeFi platforms can enhance their ability to respond quickly to emerging threats, potentially preventing significant losses.
Future Regulatory Developments
The future of crypto security will likely be shaped by stricter government regulations aimed at enhancing security practices across the industry.
As crypto becomes more mainstream, regulatory bodies are recognising the need for standardised security protocols to protect users and maintain market stability.
For example, regulations might mandate the use of multi-factor authentication, regular smart contract audits, and robust cold storage solutions for exchanges and custodial services. The Monetary Authority of Singapore introduced amendments to the Payment Services Act in April 2024 to include user protection and financial-stability-specific requirements on digital payment token providers.
Additionally, governments may establish frameworks for reporting and responding to hacks, ensuring that affected parties receive timely support and that stolen funds are tracked more effectively.
These regulatory efforts will play a critical role in fostering a safer environment for crypto transactions, which is essential for the long-term growth and adoption of digital currencies.
Lessons from the Biggest Crypto Heists
The history of cryptocurrency hacks is both a cautionary tale and a roadmap for the future. Each breach reveals gaps in security; whether it’s cold wallets proving fallible, smart contracts containing vulnerabilities, or users falling for phishing scams.
While the Bybit crypto hack has set a new precedent for what’s possible in cyber theft, it also reinforces the necessity of constant vigilance, stronger security measures, and user education. The crypto industry may never be completely hack-proof, but learning from past mistakes is the only way to stay ahead of cybercriminals in this digital gold rush.
FAQs
What are the biggest crypto hacks in history?
The largest crypto hacks include Bybit (US$1.5 billion), Poly Network (US$610 million), and Ronin Network (US$625 million in 2022).
How do hackers steal cryptocurrency?
Hackers use methods like private key theft, exchange breaches, smart contract exploits, and phishing scams.
Can stolen cryptocurrency be recovered?
In some cases, blockchain forensics can trace stolen funds, but full recovery is rare unless hackers return the assets voluntarily.
What is the safest way to store cryptocurrency?
Cold wallets (offline storage) are the most secure option compared to hot wallets and exchanges. However, given the recent hack of cold wallets, this is subject to change.
How can I protect my crypto from hackers?
Use multi-factor authentication, store assets in cold wallets securely , avoid phishing scams, and regularly update your security settings.
Source of image: Edited from Freepik
