Crypto exchange Huobi plans to lay off about 20% of its staff, the company told Reuters on Friday, in the latest sign of sharp cost cutting in the industry as investor interest in digital assets slumps. The sheer amount of crypto flowing across these cross-chain bridges makes them valuable targets. A total of 10 hacks this year have involved bridges, leading to losses of $1.3 billion, according to Chainalysis.

Why Can Blockchain Be Hacked

This information is recorded using scripts embedded on the fake website and then used by hackers to access victims’ accounts on the real website. Webhooks are customized API functions that allow monitoring of online properties and can be set up to deploy once certain conditions are met. Webhooks in online crypto and blockchain communities are commonly used to push live notifications and are regularly targeted by malicious actors looking to deceive gullible users. Any deployed contract will have risk factors that should be monitored and defended against. However, many development teams do not have a robust security monitoring solution in place. Often, the first sign that something problematic is happening comes from an on-chain diagnosis.

Can Bitcoin get shut down / turned off?

“A new on-chain governance mechanism will be introduced on the BNB Chain to fight and defend future possible attacks,” the post read. Instead of that, in crypto people use cross-chain bridges, which have proven very vulnerable. The industry’s overlapping providers and intermediaries make consumers’ cryptowallets vulnerable.

Bitcoin’s success has fueled legions of follow-on projects, imitators, and fans. Thieves, not to be left out, discovered opportunities as well—because where there is a promise of riches, there is an opportunity to steal it. The scale of the Mt. Gox hack forced CEXs to put more security and insurance measures in place. Most high-profile CEXs keep their crypto in cold storage, and many use extra security measures like two-factor authentication. Binance’s Zhao in an earlier post on Twitter said the “impact estimate” of the incident was around $100 million. At least $7 million of stolen funds has already been frozen, a spokesperson for the Binance-backed BNB Chain said.

  • The existing proposal isn’t clear on how these judges are chosen, other than it will be “random.” Without the system being very carefully balanced, it’s hard to say that collusion or manipulation is impossible.
  • The Polkadot crypto projects lost $52 million in just 2 hack events.
  • Investigations into the attack revealed that the hackers used valid login credentials to log into the accounts.
  • According to Sky Mavis, an attacker used hacked private security keys to compromise the network nodes that validate transfers to and from the Ronin blockchain.
  • Incrementors give a technical SEO checklist that guarantees you the whole progress of our technical SEO service.

“FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don’t go on FTX site as it might download Trojans,” wrote an account administrator in the FTX Support Telegram chat. Cheyenne Ligon is a CoinDesk news reporter with a focus on crypto regulation and policy. FTX officials appeared to confirm rumors of a hack on Telegram, instructing users to delete FTX apps and avoid its website. As Eisenberg wrote on Twitter, “I believe all our actions were legal open market actions, using the protocol as designed.” He did express regret that the exchange became insolvent as a result.

Cross-chain bridges

For instance, is using artificial intelligence to keep track of any suspicious transactions on a given ledger to detect malicious bot activity. Most cryptocurrency hacks are still phishing and malware attacks, which take advantage of gullible targets by tricking them into handing over their credentials. Until the Ethereum Classic incident, hackers were generally aiming their sights at exchanges, the places where people trade and hold cryptocurrencies. Members of the network are incentived to validate, record and announce the records.

Another security-critical cryptographic algorithm is the SHA-256 hash function, which is the random, one-way function behind Bitcoin’s Proof-of-Work algorithm, the Lightning Network’s HTLCs, and more. This in-depth article highlights the blockchain security reference architecture that can be applied across blockchain projects and solutions for various industry use cases and deployments. Employ experts to help you design a compliant and secure solution and help you achieve your business goals. Look for a production-grade platform for building blockchain solutions that can be deployed in the technology environment of your choosing, whether that is on-premises or your preferred cloud vendor. In today’s digital world it is essential to take steps to ensure the security of both your blockchain design and environment. X-Force Red blockchain testing services can help you do just that.

Then the members of the network would hard fork off to a new version that has not been affected, and this would cause the attacked version of the digital asset to drop in value significantly. Also, in order to be able to succeed with such a hack, the hacker would have to control and alter simultaneously 51% or more of the copies of the Blockchain. The fidelity of data stored in blocks is crucial, just as the decentralization nature of the Blockchain.