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The Cryptocurrency Infrastructure is Young and Investment OT Management Susceptible to Hacking Division Timeline of Major Cryptocurrency Hacks and Amount Stolen _ . Inputs.io — 4,100 BTC BIPS* 1,295 BTS - Picostocks — 6,000 BTC Mt Gox — 75,000 BTC Poloniex — undisclosed BTC Canadian Bitcoins — undisclosed BTC - Flexcoin — 1,000 BTC - Bitcurex — undisclosed BTC Coinapult — 150 BTC Bitfinex-1,500 BTC - Scrypt.CC — undisclosed BTC - BitStamp — 18,866 BTC - BTER—7,170 BTC - Purse.io — 10,235 BTC Bitfinex — $65mil Gatecoin — $2mil - - Cryptsy — 13,000 BTC - Cointrader — undisclosed BTC - DAO — $55mil - CoinDash — $7mil - Swarm City — $32.6mil - Bithumb —'$1mil - Veritaseum — $8.4mil zeternity blockchain — undisclosed - Edgeless Casino — undisclosed - Parity (Ethereum) — ~$350mil - = Although cryptocurrencies cannot be spent without control of the corresponding private keys, care must be taken to protect those private keys. Many bitcoin owners allow exchanges to custody their private keys, which leaves them vulnerable: — Ifhackers are able to access owners’ private keys, they can deplete owners’ digital wallets. — As of August 2016, Reuters reported that a third of bitcoin exchanges had been hacked.! — Ethereum’s recent Parity hack is the first time a coding error has resulted in a loss of funds. = Estimates vary but suggest that hackers have stolen at least several hundred million dollars of cryptocurrencies. (1) http://fortune.com/2016/08/29/risk-of-bitcoin-hacking-is-real/ Source: Investment Strateav Group. public news sources. See appendix for list of articles. 21 HOUSE_OVERSIGHT_025684