The Cryptocurrency Infrastructure is Young and Investment | TD . . Management Susceptible to Hacking Division Timeline of Major Cryptocurrency Hacks and Amount Stolen 2011 = Allinvain — 25,000 BTC 2012 BitFloor — 24,000 BTC - - Bitcoin Savings and Trust — 46,703 BTC MF | 5.15.i0 — 4,100 BTC _ ~ - Inputs.io — 4, BIPS 1299 BTG - Picostocks — 6,000 BTC 2014 palenies « Tndiseted BIC 3 | omeelti 1008 Bite Canadian Bitcoins — undisclosed BTC -__| 7 Bitcurex— undisclosed BTC 2015 Coinapult- 150 BTC - - BitStamp — 18,866 BTC Bitfinex-1,500BTC - | -BTER-7,170BTC Scrypt.CC — undisclosed BTC - - Purse.io — 10,235 BTC 7 m 2016 Bitfinex — $65mil -"™y""= Cryptsy — 13,000 BTC Gatecoin — $2mil - - Cointrader — undisclosed BTC - DAO - $55mii 2017 ele Ty eleeieeln - rr nee - | - CoinDash — $7mil eless Casino — undisciosed - - itv — i Barity (Ethereum) — ~$350mil - | - eat in see iemil - Veritaseum — $8.4mil « 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 1s 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/ 1 Source: Investment Strateav Group. public news sources. See appendix for list of articles. HOUSE_OVERSIGHT_025684