Altsbit’s Fateful Hack: What Went Down
In a tale that could make even the techiest crypto enthusiast shed a tear, Altsbit—an Italian cryptocurrency exchange—reported that it had suffered a significant breach on February 5, 2020. This incident led to the unfortunate loss of almost all its funds, which can cause a real headache for both the creators and users. Following the initial hack announcement on February 6, 2020, the exchange devised a plan to help users get their money back.
Withdrawal Instructions and User Refunds
By February 9, the firm rolled out withdrawal instructions, vowing to reimburse its loyal users. But don’t start popping the champagne yet—refunds from Altsbit would only cover what remained in cold storage. Those frigid digital vaults were meant to be a safe haven, but alas, for many users, they weren’t enough to keep the hackers at bay.
Refund Timeline
- Refunds commence: February 10, 2020
- Refunds terminate: May 8, 2020
After that date, it was game over for any hope of reclaiming losses.
The Cold Hard Numbers
The estimates of losses were staggering for such a small operation, with Altsbit losing approximately $70,000 in Bitcoin and Ether. To put this in perspective, it’s a lot of dough, but it seems like pocket change compared to the infamous Coincheck hack, which resulted in over $500 million lost. Seriously, in the world of cryptocurrency hacks, this was akin to the small fry trying to pick a fight with a great white shark.
Altsbit vs. The Giant Hacking Incidents
- Altsbit losses: $70,000
- Coincheck losses (2018): $500 million
- Total hacks in 2019: $292 million
Yes, you guessed it right—Altsbit was swimming with some pretty ferocious fish!
Drawing Lessons: How to Stay Safe
To keep things safe and secure, Changpeng Zhao, co-founder of Binance, once suggested that for many users, storing their crypto on an exchange might be safer than keeping their own keys. A bold statement, right? But it highlights a critical point: while risks are inherent in this digital gold rush, being mindful of how and where we store our crypto can either make us kings or contribute to our downfall.
The Final Goodbye
On May 8, 2020, Altsbit officially shut its doors. While its brief existence may serve as a cautionary tale for budding exchanges, it also rings true for users: due diligence is your best friend. One loss doesn’t signify a complete loss, and in some cases, it can help highlight the importance of establishing more secure practices in the volatile world of cryptocurrency.
