Crypto Hacks and Scams — #5 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 #5: >$57,000,000 stolen from Uranium Finance.
- Reason for attack?: a bug/loophole was left in the protocol’s Uniswap v2 token pairing code after an update, allowing for the swift removal of:
- 34k WBNB ($18M)
- 17.9M BUSD ($17.9M)
- 1.8k ETH ($4.7M)
- 80 BTC ($4.3M)
- 26.5k DOT ($0.8M)
- 638k ADA ($0.8M)
- 5.7M USDT ($5.7M)
- 112k U92
Uranium’s old script code version was fine before they migrated their contract to v2, 10 days before the hack (it did not include this bug).
Interestingly, Uranium’s contracts repository were also removed from Github. Whether someone beat their devs to the bug or the insider information spread intentionally or unintentionally, who really knows! Ultimately, who loses out? Primarily, token holders.
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.
And 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.