A Brief History of Bitcoin Hacks and Frauds

We see tremendous excitement about Bitcoin at the moment, and similar is the story with other cryptos. Thanks to the increasing value of the crypt that has scored high in the market. The last few years have witnessed a massive surge of Bitcoin and other top cryptos in demand, and it will increase to move along with the best of the services in the market. However, despite the wave, the crypto world, particularly Bitcoin, is defamed for being tarnished for all the wrong reasons, mainly the frauds in this regard. In this article, we will check the number of popular scams that have taken place in this regard and things that have come forward, bugging many more people. If you are wondering about bitcoin and want to trade, visit bitcoin-motion.software.

June 2011 A BTC user loses $500K of BTCs to hackers.

In early 2011, we saw Bitcoin becoming a very close community, confined to a few hobbyists and other similar people. Bitcoin mining was a simple job that helps in generating massive money with the help of traditional home computers. So, with this, we were able to make a considerable currency. It is now going for a toss for a user known as all in vain. He later confessed that he was duped in Bitcoin Talk forums that squeezed huge money of 250K of BTC in the market. Bitcoin came with too many more pennies in 2010. And it gained a good buzz in the market when its price went to around 20 USD. And later, we saw them coming up with 500K that was lost in the fraud. Then we come along with the idea of a disaster on 13th June and then come along with waking up with a massive chunk of Bitcoin balance that seemed to have gone in the market. He then wrote in the magazine that he claimed to gain a good stolen of Bitcoin from the hard drive where transferring them into any account can be controlled and regulated by many more hackers.

August 2011 – Wallet Services Take Away the Bitcoins from the Web

We see Bitcoin wallet services now offering the option to store the coins on behalf of users. These were done with the ease and convenience factor of the customer, and many seemed to turn out insecure and even make it with outright frauds. On the wallet services, we can see Bitcoin now working in the early days, and the wallet MyBitcoin was quick to take away the massive amount of money in Bitcoin and run away without leaving any clue behind. They only went on to hack the money. You can find many more similar experiences that the Bitcoin community seemed with the online wallet services. With no actual regulations, It has only added similar experiences that are seen as giving Bitcoin a bad name on the internet and the market. The hackers successfully squeezed a considerable amount of money out of it in the same year and within a few months.

In March 2012, Money was Hacked on the Internet by a Web Host Leading to the Loss.

We have too many hackers who seem to have exploited a lot of the weaknesses of the web host. It appears to be carrying a considerable amount of money. They were able to steal a whopping 46.5K of Bitcoin that went to the value of 200K USD from many more Linode users. Also, these included the other fraud that falls with claims that the resorts of Bitcoin exchange are known as Bitcoin. The business could draw a massive sum of money in the name of another company seeking 18K of bitcoins in the market while taking up the security audit. One of the lessons we got was the encryption that went on to claim a big mistake in it.

August 2012 Fraud Called Bitcoin Ponzi Scheme

One of the biggest scams that shook the world was Bitcoin coming with the scheme known as Ponzi. The customers went for the wrong ride with higher returns in the market. It claimed that the government would fetch massive money with a deposit, leaving the profit in the market and the previous clients. The scheme was first heard in August 2012 when the government was seen coming along with the big market. Also, there were many more ideas about repaying the money with 40 M USD, which came with the cost victim of 265 Bitcoin in the market. Then came when people around the industry who were quick enough to get the best deal in the market and break it.