While the explosion in interest in Bitcoin and cryptocurrency has led to the launch of hundreds of applications for owners to buy, sell, invest, and transact their new crypto assets, there have also been instances of fraudulent apps that have been created with the sole purpose of stealing customers’ assets. Department of Justice later seized the Bitcoins as part of its criminal investigation. A group of cybercriminals known as DarkSide gained control of parts of critical infrastructure of Colonial Pipeline, agreeing to release them for the payment of approximately 75 Bitcoins. One category of cyber attack is ransomware, in which the victim’s assets are held for “ransom” until payment is made. Cybercriminals can hack mobile data networks or users’ home WiFi, in order to intervene in or divert a trade, or capture users’ personal identifiable information (PII) to log in as them and steal the crypto private keys. In a “traditional” cyberattack, criminals will make attempts to breach the devices or networks that crypto investors are using, not necessarily the individual crypto apps. These wallets, exchanges and apps are the targets of cyber attackers - not the blockchain servers themselves. Compromising the Wallets and Exchangesįor instance, Bitcoin and other cryptocurrencies are frequently held in digital wallets (known as “hot” storage) and traded through digital exchanges.

How Bitcoin and Crypto Assets get StolenĬriminals have shown no shortage of creativity when it comes to ways to steal Bitcoin and cryptocurrency. Instead, hackers target the digital services, platforms and networks that investors use to trade, store and transact with crypto assets that get hacked. Indeed, the underlying blockchain technology that supports cryptocurrency would be difficult to get hacked, as the hacker would have to breach a huge number of servers to gather information. However, when you hear about the theft of crypto assets, it is not a hack of blockchain technology or of the computers holding the crypto itself. Because Bitcoin and other cryptocurrencies are bearer assets - whoever holds the private key is the rightful owner - criminals are all the more eager to find ways to steal it from unsuspecting investors.

Crypto currency private key cracker