How Hackers Are Stealing Billions In Cryptocurrency

One thing that sets cryptocurrency apart from other investments is that it is, by design, an open-source environment, according to Koombea. In the same way that users who want to invent their own cryptocurrency or expand upon blockchain technology can easily access the source code for a coin or token, hackers who intend to engage in malicious activity are also able to study the code and test out potential breaches (via CNBC).

Because of this reality, blockchain technology is both phenomenally inviting for aspiring developers and vulnerable to attack at the hands of hackers simultaneously. HedgewithCrypto notes that 47 cryptocurrency exchanges have been breached at some point in their individual histories, so virtually all crypto users have likely been affected in some way or another (one notable exception being Coinbase, which has purportedly never been hacked).

In addition to the relative vulnerability that open source code exhibits, there is also a definite and intense benefit to hacking crypto resources. As with any type of theft, those who are looking to steal something are going to chase after things of value. Because cryptocurrency retains a sizable commodity value it is a natural target for hackers. Similarly, the ease of liquidation makes cryptocurrency a hotbed for this kind of behavior. In fact, many of the largest breaches are suspected of being orchestrated by company insiders who made off with millions or even tens of millions of dollars worth of assets.