One of the largest exchanges in the world has been in trouble a lot lately. Just recently, it had to deal with scrutiny over regulatory issues. Now their customers have been robbed of their money by a cyber attack.
Ever since Bitcoin experienced one of its largest pullbacks in May this year, critics have once again used this volatility to attack Bitcoin, saying it is not a good store of value because its price can fall 40% in a week. While that argument sounds logical at first, my own deeper analysis delivers a rather alarming result.
In the latest rounds of attack on DeFi (Decentralized Finance), FinNexus Options Protocol and DeFi platform lost close to $8 million. DeFi experts say the attack was either executed via stolen admin keys or a rug pull. In the attack, FinNexus lost more than 383 million FNX tokens pushing the price of the token to plummet by at least 90%.
With New Zealand Exchange Cryptopia in the midst of a liquidation process, hackers seem to consider it an easy victim. Despite it being under the supervision of Grant Thornton liquidators, criminals have stolen over $40,000.
For a couple of decades, people have misused the anonymity features of most cyber platforms to attack, abuse or harm others and this has been a big problem to society. But now, blockchain-based digital IDs could be a solution to combat online abuse and trolling while observing maximum anonymity.
Blockchain technology is considered to be secure and immutable due to its decentralized nature. But as it becomes more popular with new solutions popping up almost daily, hackers become inventive enough to find vulnerabilities and attack it.