The latest lawsuit that unfolded the hacking scandal of Bitpay, which led to the loss of more than 5000 bitcoins, enkindled the whole “history of bitcoin exchange hackings” which is now flashing before my eyes, so I thought I can write a piece that looks through these scandals in an attempt to find a cure to this “plague” that is presaging the future of bitcoin.
It seems like not a month passes without me being hammered by the news of some bitcoin exchange or bitcoin payment processor getting hacked and losing thousands of bitcoins. Fortunately, such hacking incidents are rather scarce when compared to the large number of bitcoin businesses, bitcoin exchanges and bitcoin payment processors present on the internet today.
However, when considering the enormous size of the cryptocurrecny economy in general, these hacking scandals are way more common than they should ever be to the extent that an analysis of the history of bictoin hacks is an analysis of the blockchain technology itself.
We will discuss most of the bitcoin hacks that took place since the blockchain technology was introduced in 2009, but we won’t tackle incidents related to black market sites like the “Silk Road”, which was an illegal online