Two entities responsible for majority of exchange hacks
New research suggests that the majority of crypto exchanges have been hacked by just two
groups. Chainalysis, a blockchain analysis software provider, published a report on Monday
indicating that two “prominent, professional” criminal groups are behind at least 60 percent of
all publicly reported crypto exchange hacks, netting around $1 billion in total.
The two groups still remain unknown but have been identified as Alpha and Beta. “On average,
the hacks we traced from the two prominent hacking groups stole $90 million per hack. The
hackers typically move stolen funds through a complex array of wallets and exchanges in an
attempt to disguise the funds’ criminal origins,” according to the report.
Based on the data collected form Chainalysis, each group operates respectively as named. The
alpha group is a “giant, tightly controlled organization partly driven by nonmonetary goals”,
with the beta group being a “less organized and smaller organization absolutely focused on the money.”
According to the company, Alpha quickly moves funds after stealing them, with an “extremely
high” average number of fund movements– one of the hacks involved up to 15,000 transfers.
Alpha also converts up to 75 percent of stolen cryptocurrencies to cash within 30 days. On the
contrary, the Beta group is comparatively slow and waits for 6–18 months before cashing out stolen
crypto, according to the report. When it decides to cash out, it quickly hits one crypto exchange
and cashes out over 50 percent of funds within days.
“Cryptocurrency crime is evolving to become part of traditional crime, and we think this trend
will continue in 2019,” the firm said. “Cryptocurrency market participants will need cutting
edge technology and investigative analysis to fight back.”
You can fight back today by purchasing a Ledger Nano X to keep your crypto safe at all times. This is the easiest and most secure way to sleep at night, knowing you’re private keys are private and your crypto isn’t sitting on some exchanges hot wallet just waiting to be plucked by these nefarious hacker teams. While we absolutely do love our Ledger Nano S, The Nano X is a much nicer and more customer friendly device. Both work exceptionally well for their intended purposes, but the execution and finish of the Nano X make it the obvious choice with the price being so close to the original price of a Nano S.