Freezing Funds from Hacked Exchanges

stomachgrowls

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Quote from: TGD on December 09, 2019, 09:23:55 AM

Quote from: bassbity on December 09, 2019, 04:20:18 AM

Quote from: Jercyhora2 on December 06, 2019, 03:43:18 AM

"Binance has a longstanding history stopping stolen exchange funds from being deposited and traded on its exchange. In January of this year, Binance froze all funds associated with the hack on Cryptopia. The exchange lost some $3.6M in cryptocurrency and Binance took efforts to freeze several batches of deposits, including Metal (MTL) and Kyber Network (KNC). Binance also froze all funds linked to money laundering from WEX in October 2018."

This is what Binance does very well if there is a hacked exchange. Binance immediately secures funds because it does not want things to happen in the next exchange, many Binance steps are praised by investors because in that way their funds can be safe without being controlled by hackers, I know Binance's security is stronger than other major exchanges.

Binance has a SAFU fund which is alloted in case exchange was hack to cover investors loss. This is what I like about then besides there security level. They assume that they will be hacked in future becuase there is no safe online. They anticipate always the worst case scenario which CZ is good about.

Nothing in online world is unhackable and thats the good thing with Binance and should really be a standard for most exchange to have that SAFU funds or back up ones incase if there are some breaches happen on the platform where they do able to compensate on whats lost by its users.Look at on what happen to Binance after the hack? It seems like nothing is happened due to that kind of immediate action that they had made.

In regards to the topic about freezing funds from other platforms then its just an ethical act for a platform to be done.Even though they are competitors but showing off respect on what happen to them
and also you arent only helping the platform but also you are helping those victims.

StephenieDuong

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Its possible to freeze the funds from hackers, but only on big exchange or big payment company. Soon, i think hackers will find other way to get those money, they can go to blackmarket, deposit to small exchange to get clean cash... I thinks there should be more option to solve this problem soon, maybe tag those hacked coins with somethings.

boris singer

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Quote from: ereborltc on December 18, 2019, 12:45:38 AM

I think that most of the hacking incidents in the exchanges may be caused by internal mistakes. The exchanges are not operating well and they want to quit. So the ultimate loss is the interests of investors.

There is no valid evidence yet, but Idax is indeed indicated to have committed a crime.

If they want to quit (another exchange), then the exchange will make a refund, they also don't want to have a bad reputation and end up in prison.

Most exchanges that were previously hacked continue to look for conditions to stabilize as soon as possible because they still have big plans for business development, eliminating the reputation that was built with hard work from the start is not an easy problem.

ereborltc

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I think that most of the hacking incidents in the exchanges may be caused by internal mistakes. The exchanges are not operating well and they want to quit. So the ultimate loss is the interests of investors.

Cherylstar86

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Quote from: Bossfidelity on December 09, 2019, 03:58:37 AM

Quote from: Jercyhora2 on December 06, 2019, 03:43:18 AM

There are some consecutive incidents have been happens about "stealing funds"

But let's talk about the usually scenario on crypto world which is "Hacking" and how exchanges helps to minimize and protect not only the funds of the investors as well as protecting trust of all crypto users.

There are narrative that saying exchanges like Binance, Bitfinex, poloniex etc. Practicing frozing funds from wallets that currently holds funds from hacked exchanges.

Is it possible that they give back the funds from investors who are victims of exchanges breach?

"Binance has a longstanding history stopping stolen exchange funds from being deposited and traded on its exchange. In January of this year, Binance froze all funds associated with the hack on Cryptopia. The exchange lost some $3.6M in cryptocurrency and Binance took efforts to freeze several batches of deposits, including Metal (MTL) and Kyber Network (KNC). Binance also froze all funds linked to money laundering from WEX in October 2018."

This is indeed a great move by binance. I'm even surprised that funds of such nature could be traced and frozen. I'm even hearing for the first time that cryptopia lost $3.6m. I had some funds in the exchange before the incidence and I also got to know that the exchange has been liquidated.

On my opinion, it's a good move by binance as they do something good for those users of binance as they just want a user have a secure funds. Every one of us want a secure funds since the binance exchange do their own way we must aware next time so that we can do our own way of exchange process.

TastyChillySauce00

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Quote from: Zeke_23 on December 06, 2019, 06:45:41 AM

Quote from: Rodeo02 on December 06, 2019, 06:41:04 AM

And the hackers will not send that hacked balance to any exchange because he know what will happen to that balance and possible that he cant get any amount for selling it. If i would be the hacker i will just stay it in my wallet for security reason or i will use mixer and will send only small amount.

Hackers are smart so I think it is accurate that they won't send those balances back to any exchange just to make sure that his stolen funds will get to use and not be frozen once it was reported. Or maybe the hacker will split those funds to different wallets and make small transactions so it won't be too obvious.

That's true and the main point of exchanges doing this kind of act is to make them stay out of any possible problem and criminal related activities so that they will not get involved in this kind of problem. Many hackers out there even don't move the stolen money from the wallet for so many years until there is less attention and also the risk involved if they are trying to send it anywhere else. It's still a good prevention method and to make it harder for the hackers to cash out their money and at the same time giving time for further investigation.

TGD

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Quote from: bassbity on December 09, 2019, 04:20:18 AM

Quote from: Jercyhora2 on December 06, 2019, 03:43:18 AM

"Binance has a longstanding history stopping stolen exchange funds from being deposited and traded on its exchange. In January of this year, Binance froze all funds associated with the hack on Cryptopia. The exchange lost some $3.6M in cryptocurrency and Binance took efforts to freeze several batches of deposits, including Metal (MTL) and Kyber Network (KNC). Binance also froze all funds linked to money laundering from WEX in October 2018."

This is what Binance does very well if there is a hacked exchange. Binance immediately secures funds because it does not want things to happen in the next exchange, many Binance steps are praised by investors because in that way their funds can be safe without being controlled by hackers, I know Binance's security is stronger than other major exchanges.

Binance has a SAFU fund which is alloted in case exchange was hack to cover investors loss. This is what I like about then besides there security level. They assume that they will be hacked in future becuase there is no safe online. They anticipate always the worst case scenario which CZ is good about.

Bezobraznike

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Quote from: bassbity on December 09, 2019, 04:20:18 AM

Quote from: Jercyhora2 on December 06, 2019, 03:43:18 AM

"Binance has a longstanding history stopping stolen exchange funds from being deposited and traded on its exchange. In January of this year, Binance froze all funds associated with the hack on Cryptopia. The exchange lost some $3.6M in cryptocurrency and Binance took efforts to freeze several batches of deposits, including Metal (MTL) and Kyber Network (KNC). Binance also froze all funds linked to money laundering from WEX in October 2018."

This is what Binance does very well if there is a hacked exchange. Binance immediately secures funds because it does not want things to happen in the next exchange, many Binance steps are praised by investors because in that way their funds can be safe without being controlled by hackers, I know Binance's security is stronger than other major exchanges.

Binance is the best crypto-exchange for a reason. I didn't know what they did with stolen funds from another exchange, but their move
is amazing, I can say like others moves Binance makes. They are doing the best they can and investors and traders like to hear that.
After reading this, I will think about buying more Binance coins, I have some, but more I read about them, more I like them and maybe
I should have more BNB in my wallet.

bassbity

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Quote from: Jercyhora2 on December 06, 2019, 03:43:18 AM

"Binance has a longstanding history stopping stolen exchange funds from being deposited and traded on its exchange. In January of this year, Binance froze all funds associated with the hack on Cryptopia. The exchange lost some $3.6M in cryptocurrency and Binance took efforts to freeze several batches of deposits, including Metal (MTL) and Kyber Network (KNC). Binance also froze all funds linked to money laundering from WEX in October 2018."

This is what Binance does very well if there is a hacked exchange. Binance immediately secures funds because it does not want things to happen in the next exchange, many Binance steps are praised by investors because in that way their funds can be safe without being controlled by hackers, I know Binance's security is stronger than other major exchanges.

Bossfidelity

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Quote from: Jercyhora2 on December 06, 2019, 03:43:18 AM

There are some consecutive incidents have been happens about "stealing funds"

But let's talk about the usually scenario on crypto world which is "Hacking" and how exchanges helps to minimize and protect not only the funds of the investors as well as protecting trust of all crypto users.

There are narrative that saying exchanges like Binance, Bitfinex, poloniex etc. Practicing frozing funds from wallets that currently holds funds from hacked exchanges.

Is it possible that they give back the funds from investors who are victims of exchanges breach?

"Binance has a longstanding history stopping stolen exchange funds from being deposited and traded on its exchange. In January of this year, Binance froze all funds associated with the hack on Cryptopia. The exchange lost some $3.6M in cryptocurrency and Binance took efforts to freeze several batches of deposits, including Metal (MTL) and Kyber Network (KNC). Binance also froze all funds linked to money laundering from WEX in October 2018."

This is indeed a great move by binance. I'm even surprised that funds of such nature could be traced and frozen. I'm even hearing for the first time that cryptopia lost $3.6m. I had some funds in the exchange before the incidence and I also got to know that the exchange has been liquidated.

Casdinyard

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Quote from: aardvark15 on December 06, 2019, 09:36:51 AM

If your funds were stolen from an exchange, you should not count on getting it back. I lost money on the exchange Cryptsy a few years ago when they closed down after the owner stole the funds and went to China. It’s too hard to get the money back and to figure out who to give it back to.

Not really, the thing is if the entire site was hack it's covered by SAFU ( but still depends on the site ) then you can have your funds back though it will really take time BUT if it's just your account that gets hack then don't bother to recover it.

In your case, idk what exchange site is that but I wouldn't really recommend using random obscure sites.

TRONTON

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Quote from: Bitbtc8 on December 06, 2019, 10:39:56 AM

To me binance is really the best exchange in crypto space today, they always take good actions against stolen funds but i can't find new about stolen funds that got returned to right owners but since they are able to refund lost fund to users after binance got hacked is a good move from a centralized exchange, if all exchange can be like binance it will be helpful

The safu method applied by binance does not affect the user's funds because it will be quickly recovered from the cold wallet to the user's wallet without them being aware, for some cases that have occurred the user only needs to wait for the maintenance process for some time.

This is most likely also done by upbit, but with a different mechanism due to different security policies with binance. Basically the exchange parties incur losses, but they set the alarm system in a fraction of a percent to prevent more losses before starting the freezing and further investigation steps.

batang_bitcoin

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Quote from: angrybirdy on December 06, 2019, 05:09:05 AM

Quote from: batang_bitcoin on December 06, 2019, 04:51:20 AM

Quote from: Jercyhora2 on December 06, 2019, 03:43:18 AM

Is it possible that they give back the funds from investors who are victims of exchanges breach?

Yes, it is. That is one role of Binance being a leader in the world of exchanges. They are more than responsible not just for securing the funds of their customers but they are also helping to determine funds from hack exchanges or funds coming in to them to be laundered.
IMHO, there's a process for it and what that could be? I don't know but there's a protocol and investigation that should happen before releasing the fund to the rightful owner.

You're correct with that, but also, it is only possible for binance or any other big exchange since they have the capability to produce payments for the victims of exchange breach. But for those small exchange, it is impossible to retrieve their funds whatever please they make, their funds will forever be gone.
There is a process or legitimacy process where you will be needing to provide proofs that you are the owner of funds, amount in the exchange you had before the breach and many more.

Yup but OP just pointed out the huge exchanges which is very likely that they'll do. About the smaller exchanges, you're right that they might just forget the incident and tell that all funds are gone. It's simple as that.
This is the reason why the huge exchanges are becoming bigger because of this security and assurance that they are giving to their users. So being a user, choose a huge exchange and avoid smaller exchange but I know there are traders that wants to try the new ones.

Jercyhora2

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We aren't noticing that this problem are being so typical, if there any action do by others huge exchanges, it will lead to investors minimization.

sorrros

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I own some Dash coins, what do you think will this coin recover from the recent bad occasions? Maybe it would be better to sell it and buy really decentralized anonymous cryptocurrency that works on the revolutionary protocol - MimbleWimble - Grin

.

satgoldan

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Quote from: OneCoinMan on December 06, 2019, 10:30:07 AM

I think that you should not consider these three events in one topic, since they all have different weights, different consequences, as well as different motives. I think that the IDAX exchange is just a big fraud, but UPBIT really did it all out so it seems like it’s a real hack, but I don’t really focus on it because it doesn’t give me anything, it’s worth thinking about my problems, and these guys a lot of money and they will cope with their problems.

Why did you get the idea that the IDAX exchange is a scam exchange !? Why make such high-profile statements if you yourself cannot provide any evidence. Surely you just took it all from the Internet and now you are writing to us here. Just treat everything as an outside observer, think about how it could be that the exchange that created its name for several years at one moment will turn out to be a fraud, rightly, nothing. It’s just that this news was released by people who don’t want the good of IDAX.

Bitbtc8

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To me binance is really the best exchange in crypto space today, they always take good actions against stolen funds but i can't find new about stolen funds that got returned to right owners but since they are able to refund lost fund to users after binance got hacked is a good move from a centralized exchange, if all exchange can be like binance it will be helpful

ganeshramk

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Quote from: TastyChillySauce00 on December 06, 2019, 03:55:37 AM

The point of Binance freezing the stolen funds is to prevent it from moving to another address and being laundered all over again and while giving time for the respective exchange to somehow investigate and cooperate with binance in order to return the money. This is also why KYC is a requirement in most of the popular exchanges so that they could trace who's the holder of that account but it could be a double edge sword. So, the money will not be distributed directly to the users who lost their money but instead given back to the exchange who got their funds stolen which is basically the same thing anyway and more efficient and of course, how Binance and other exchange could cooperate resulting to the return of the fund is not that simple.

I completely agree on this statement. Most exchanges are getting into KYC business now that too they are doing it properly. In future, this kind of tracing could be easier.

target

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Quote from: goaldigger on December 06, 2019, 04:02:34 AM

One of the reason why Binance is a good exchange, they help the crypto community to block the hackers and of course by giving great services. Exchanges should have the limit on withdrawing funds everyday and if its a big money then KYC is important. So many hacking incidents on different exchanges, they should learn a lot from them. Freezing the funds is the best way to stop them, i just hope that it can transfer back from the real owners.

Binance were recognized by more users to be more trusted exchange since then. But its also the reason why some of the users now are avoiding it because of this practice, what possible reason would they be seeing to freeze an account?

All users who will withdraw fund past its limit will have to submit KYC but they may be asking where the funds are from. This would lead you to sending more documents too private.

OneCoinMan

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I think that you should not consider these three events in one topic, since they all have different weights, different consequences, as well as different motives. I think that the IDAX exchange is just a big fraud, but UPBIT really did it all out so it seems like it’s a real hack, but I don’t really focus on it because it doesn’t give me anything, it’s worth thinking about my problems, and these guys a lot of money and they will cope with their problems.

Topic: Freezing Funds from Hacked Exchanges (Read 371 times)