Crypto Hacks and Scams — #4 on the list
You own, invest, and stake your crypto to develop your wealth, but this Web3.0 ecosystem, although transparent, is completely unregulated. It is the Wild Wild West — and everyone is fending for themselves. So how do you ensure that someone else cannot simply take your digital finances without peace of mind that you could get it back? Insurance. Period.
We have encountered many who ask “what is the real need for an insurance token?”, “why would I need such a protection for my “de-finances”, given the various wallet security measures, mnemonic/recovery phrases and authentications protecting my wallets or holdings?
Well, the fact is, one of life, that there is always a risk and these risks are especially pronounced in the unregulated Web 3.0 ecosystem.
So let’s take a brief look at some fairly big hacks and scams documented by Rekt and how they were executed, and you might then just think again:
At #4: ~$59,000,000 stolen from EasyFi.
Reason for attack?: Very poor operations security measures by EasyFi, a simple transaction theft that leaves one wonder why no harder security measures, multi-signature wallets or hard wallets were in place for the theft of the following funds:
- ~$53 million EASY tokens
- $6 million in stablecoins
Even more alarming, the hack resulted in the single perpetrator gaining control of 30% of the total EASYFi supply, resulting in the network becoming quite centralised due to high control granted to the hacker.
Although it seems security measures were very poor by the EasyFi team, the creator went on to write an open letter seeking mercy from the perpetrator:
“OPEN LETTER TO THE HACKER
You’ve used very sophisticated techniques to steal a lot of funds from the EasyFi community. EasyFi is a very new project which has received a lot of love & support from its users being the one of early movers on the layer 2 Polygon network.
We are still at a very early stage and not in a position to make good all the losses in a personal capacity. We care for our community and shall do everything possible at our end to make good all the losses that happened to our users from this theft. We are in great shock and, believe, so as our users who relied on & supported us since inception.
As the founder of the project, I would urge you to be thoughtful of the hard work gone into building EasyFi so far. I request you to consider returning all funds and discuss the possibility of an appropriate bounty to avoid all the legal trouble in the future. We can consider a clean payout to a white hacker worth 1M USD and not attempt any legal proceedings regarding this incident.”
Who loses out? Token holders, community members and network users.
So, potential risk mitigation methods for token holders to avoid the consequences of such an event? Well, DeFi insurance can ensure that your defi investments and portfolios are supported and compensated, if need be, by a trusted, transparent community.
Nobody’s de-finances are 100% safe in the current wild web 3.0 crypto space.
We are proud to be a part of the inSure DeFi community.
About inSure DeFi
inSure DeFi is a Decentralized Insurance Ecosystem, partnered with Chainlink, trusted by thousands of community members to protect their crypto portfolios from scams, exchange closures, and drastic devaluations. inSure DeFi provides insurance solutions for the crypto space to stabilize and secure Crypto & DeFi portfolios.
Fast. Transparent. Future.