Since Bitcoin doesn’t have a currency characteristic, it cannot be deposited in the bank. It is held in a Software that acts as a ‘digital wallets’ which is proven to be vulnerable to thieves and hackers.
The added advantage for hackers is that Bitcoin is also an Anonymous currency, that keeps a person’s real identity separate from his digital address. So if at all the hackers Wallet address gets tracked, It won’t be of any use since his real identity is still unknown.
The very Fact that all Bitcoin transactions are permanent and cannot be undone, gives hackers a free hand to steal Bitcoins and get away with it.
In fact, there are many clever tricks built within Bitcoin System that makes sure, altering any ledger entry in the blockchain invalidates all subsequent entries. So It is Practically Impossible to Undo Payments in this case “Stolen Bitcoins” unless the hacker himself agrees to return the stolen Bitcoins.
There are Basically two ways a hacker could hack Bitcoin System for Stealing Bitcoins.
He is either able to get the Bitcoin wallet password (Wallet key or private key) of a User or a group of users and then use it to transfer all the bitcoins from users wallet to his Anonymous Wallet. Or he could actually hack Bitcoin Exchange and collect all the bitcoins. Another way is Hijacking Mining Pool and redirecting all of its computing power to Mine Bitcoins for yourself.
It’s 2017 and hackers have discovered another easy way of earning free bitcoins, there are now targeting greedy users who are looking for bitcoin multiplier software’s to double or triple their bitcoins.
let us see how exactly Hackers are stealing thousands of bitcoins using Bitcoin Hack:
1) Hacking Users Bitcoin wallet Password (Stealing Private Key)
Owning a Bitcoin Wallet literally means owning a Private Cryptographic Key (Blockchain Password) to unlock Wallet address of other users in order to send them Bitcoins.
Usually this Private Cryptographic Key is a long string of numbers and letters. You may choose to store your key in a number of places including a paper printout, a hard drive, or an Online Drive.
No matter where you store your Private key, your wallet is vulnerable to theft since the hacker simply needs to gain access to your Private key. Mostly Hackers target ‘Online services‘ that store the private keys for a large number of users.
In this case the Hacker just takes help from the insiders at the ‘Online service’ or Hacks the Server, copying database of private keys and gain control of the bitcoins at all those addresses. The Hacker can now spend all of those Bitcoins wherever he wants.
Alternatively, If the Hacker Knows a Specific Bitcoin Miner or a Company involved in Mining, he could just infect their Systems with a Malware that would search for Private keys Stored on their System drives or he could hack into their pool account and change the payout address.
2) Hacking Bitcoin Mining Pools and Exchanges
In August 2014, a Hacker was able to Mine $84k worth of Bitcoins by Hacking into Bitcoin mining pool, by gaining access to the ISPInfrastructure and diverting the computing power of private Bitcoin mines to his own Mining pool.
Hacking Bitcoin Pool involves gaining control of the processing power of a group of bitcoin miners (Mining Pool), the users who spend processing power to add new coins to the currency’s network and who are in turn rewarded with a cut of the resulting crypto-currency the pool produces. The Hacker Redirects the Computing Power of Pools participants to his private pool by tricking them into continuing to devote their processors to bitcoin mining. All for Him.
The Researcher found out that Hackers are Targeting ISP’s and then compromising the service known as the ‘Border Gateway Protocol’ (BGP)that is designed to connect different networks on the internet together. With so-called border gateway protocol, Hackers are able to redirect traffic destined for a legitimate mining pool to his own pool.
Executing such type of hacking is very difficult and requires Help from Insiders of ‘Internet Service Provider’, given that it requires inside access to an ISP.
That’s all we have right now and Please note that carrying out any of such Bitcoin hacking attacks is an Offence. Use at your own discretion.
Since Bitcoin doesn’t have a currency characteristic, it cannot be deposited in the bank. It is held in a Software that acts as a ‘digital wallets’ which is proven to be vulnerable to thieves and hackers.
The added advantage for hackers is that Bitcoin is also an Anonymous currency, that keeps a person’s real identity separate from his digital address. So if at all the hackers Wallet address gets tracked, It won’t be of any use since his real identity is still unknown.
The very Fact that all Bitcoin transactions are permanent and cannot be undone, gives hackers a free hand to steal Bitcoins and get away with it.
In fact, there are many clever tricks built within Bitcoin System that makes sure, altering any ledger entry in the blockchain invalidates all subsequent entries. So It is Practically Impossible to Undo Payments in this case “Stolen Bitcoins” unless the hacker himself agrees to return the stolen Bitcoins.
