The cryptocurrency market has been turbulent recently. Two theft cases involving staggering amounts of money have attracted attention one after another, not only stirring market nerves, but also making industry security issues the focus again.
The Five-Year-Old BTC Case: The Fall of the Top Mining Pool
The first case to stir up controversy was a five-year-old case. LuBian, a leading mining pool that once controlled 6% of the Bitcoin network's computing power, was hacked in December 2020, resulting in the disappearance of 127,000 BTC. At current prices, this amount is worth $14.5 billion, leading to the complete closure of the once-prosperous mining pool.
When the incident was exposed, market panic quickly spread. Retail investors, fearing the safety of their assets, withdrew their Bitcoin from mining pools and platforms, triggering a short-term "run." Bitcoin prices fluctuated by over 8% within 48 hours, and some small and medium-sized mining pools were plunged into crisis due to user exodus. More alarmingly, an investigation revealed that this case was not simply a technical hack—the hackers not only exploited system vulnerabilities but also allegedly gained critical privileges through insiders, exposing the platform's dual failures in both technical protection and internal management.
Record-breaking ETH theft: $1.5 billion shakes the market
The aftermath of the old case has yet to subside, and a new shock has arrived. A major cryptocurrency trading platform was recently hacked, with over 400,000 ETH and its equivalent in stETH stolen, totaling over $1.5 billion, setting a new record for the largest single cryptocurrency theft.
Despite the platform's swift freezing of associated assets and collaboration with security agencies to track fund flows, the losses were irreversible. The market chain reaction was immediate: Ethereum prices plummeted by over 5% in a single day, derivatives markets experienced frequent margin calls, and the HTX platform even experienced a single margin call of $45.79 million. Retail investor confidence was dented, with trading volume on major platforms dropping by over 20% in a single day and the panic index soaring to a nearly six-month high.
The safety line does not allow any luck
The two cases were like a heavy hammer, once again sounding the alarm for the industry: security has never been an "extra question", but a "must-answer question" to support the survival of the cryptocurrency market.
For platforms, balancing expansion and security is imperative. Whether it's internal permission management at mining pools or smart contract audits on trading platforms, security investments must be integrated into core budgets rather than relying on post-mortems. For investors, diversifying asset storage, choosing compliant platforms, and avoiding overly concentrated holdings remain realistic options for mitigating risk. After all, the anonymity inherent in cryptocurrencies can also make asset recovery incredibly difficult.
In this market where risks and opportunities intertwine, there's no such thing as "absolute security," only a constant, taut safety net. Only by forging strong defenses for platforms and maintaining investor vigilance can the innovative exploration of cryptocurrencies avoid becoming a footnote to repeated security incidents.
We will continue to pay attention to the progress of the subsequent case, and for every participant, proceeding cautiously may be the most responsible attitude towards assets.