Freezing Funds from Hacked Exchanges - page 2.

joshy23

sr. member

Activity: 1078

Merit: 256

Quote from: pawanjain on December 06, 2019, 09:51:44 AM

There are a few exchanges that have better policies than the other exchanges and binance is one among them.
Most of the exchanges have been hacked but very of them have survived and recovered. Binance did a good job saving money for incidents like these.
This shows that Binance is customer focused and not money focused.

Indeed, there's incidents that binance also suffered from hacks and they manage to freeze funds for a while and make sure that everything will be safe, and look with the business right now, they continue to prosper and they still have many traders and investors working inside and trusting their service. They are good in allowing the funds to be kept and like what you have said they are focused with customers and how to take the long run securely.

pawanjain

hero member

Activity: 2702

Merit: 716

Nothing lasts forever

There are a few exchanges that have better policies than the other exchanges and binance is one among them.
Most of the exchanges have been hacked but very of them have survived and recovered. Binance did a good job saving money for incidents like these.
This shows that Binance is customer focused and not money focused.

aardvark15

hero member

Activity: 1008

Merit: 510

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.

Nalbo

full member

Activity: 874

Merit: 125

There's no exact explanation for that but it depends on the nature and extent of hack. Funds are frozen so that they could investigate the scenario and the seriousness and possibly stop any withdrawal the hackers have not yet done. Exchanges keep large portion of their funds on cold wallet and they are mostly able to mitigate the loss due to hack by themselves without affecting the user balance.

yangongear

full member

Activity: 447

Merit: 100

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."

Yes, they have a system to track all of the transaction from hacked fund. And with hacker which have a huge amount money from hacking, it's very hard for them to launder money. They need exchanges with high liquidity, but if they deposit fund to these exchanges, the tracking system will detect and freeze their accounts immediately. But I didn't hear about any case that exchanges will refund for peoples who was hacked.

dark08

full member

Activity: 798

Merit: 104

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.

This is one of a reason why Binance still the top exchange site in the market right now, CZ continue to improved its security plus helping the community by blocking/freezing of hacker fund in their exchange site. Regarding for giving back the fund of the victim this is possible specially if the victim prove their hacked in the exchange site.

Coyster

legendary

Activity: 2184

Merit: 1302

The first form of defense would be not to store coins on an exchange, do not take an exchange as a wallet, they can be hacked at the moment you least expected and lost funds are almost impossible to recover.

Other exchanges should also join in and practice this, freezing funds of exchanges that have just been hacked could stop the hackers from immediately trading the stolen funds on other exchanges,but the truth still remains that after such funds have been frozen, there is no chance the funds can get back to the original owner, that takes us back to what I said earlier about never storing coins on exchanges.

alyssa85

legendary

Activity: 1652

Merit: 1088

CryptoTalk.Org - Get Paid for every Post!

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?

It depends on whether the thefts have been reported to the police. If they have been reported, and the police are able to prove in a court that the coins were stolen, then the courts can order the coins to be returned.

But it all needs to happen by the book.

VanDeinsberg12

hero member

Activity: 1540

Merit: 507

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?

It's possible as long as the users can prove if they were the victim from those hacked exchange sites. But as far as i know this will consume a lot of time and im still not yet understand about what's the procedure that used to prove it.

This will take a lot of documents and txid as the proof.

aioc

hero member

Activity: 2926

Merit: 567

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."

These exchanges should have one another to combat this illegal activities, what happen to one exchanges can also happen to other exchanges, inb fact they need to set up an organization to safeguard and protect each other, but what Binance has done is a great help for the community, no wonder they are the top exchange in the market.

jrrsparkles

sr. member

Activity: 2520

Merit: 280

Hire Bitcointalk Camp. Manager @ r7promotions.com

Once the exchanges has been hacked then its not actually possible to recover or froze those funds but there are some exchange like binance offers refunds but we can't say this will happen in future if their exchange got hacked.So exchanges have to keep their security at its best and also they have to keep lurking around for any breaches and attacks so they can lock all the wallets if there is something is about to happen.

lunnatic

sr. member

Activity: 1190

Merit: 250

COMBONetwork

Quote from: ecnalubma on December 06, 2019, 06:03:35 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?

It is possible, however it will undergo a long process also the numbers of affected accounts should be identified as well. It is time consuming, most exchanges directly compensate their affected users to speed up the process also it requires a company to company talk.

it depends on the exchange platform, I don't think IDAX will refund because their CEO ran away, and for UPBIT they might be able to return it but I can't guarantee it, this is different from the case of the hacker-affected Binance too, but Binance is the best exchange platform and famous so they returned investor funds.

Jating

hero member

Activity: 2842

Merit: 772

Binance has SAFU as well so as far as I know they have given back the hack funds.

However, I don't know if this is being implemented by mid tier exchanges, however, I do believed that Upbit should cover this one, as this is one of South Korean's regulations, as far as I remember. Also, it seems that exchanges are cooperating with each other. Like the Upbit hacked again, Binance responded that they will froze the funds it even the hacker deposit it on their exchange.

Zeke_23

sr. member

Activity: 868

Merit: 333

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

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.

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.

Rodeo02

hero member

Activity: 1302

Merit: 577

avatar and signature space for rent !!!

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.

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.

mrdeposit

hero member

Activity: 1358

Merit: 509

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?

AFAIK, when the last time Bitstamp was hacked, I have read that it will pay the stolen funds from the cold wallet. Also, I have read something like this about Binance too. Top exchanges essentially pay back the stolen money in order not to lose their rating otherwise, there will be big issues regarding reliance. But, in the others reimbursement is mostly not implemented.

ecnalubma

sr. member

Activity: 1540

Merit: 420

www.Artemis.co

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?

It is possible, however it will undergo a long process also the numbers of affected accounts should be identified as well. It is time consuming, most exchanges directly compensate their affected users to speed up the process also it requires a company to company talk.

angrybirdy

sr. member

Activity: 1022

Merit: 277

★Bitvest.io★ Play Plinko or Invest!

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.

batang_bitcoin

hero member

Activity: 3080

Merit: 603

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.

Nadziratel

sr. member

Activity: 1568

Merit: 321

★777Coin.com★ Fun BTC Casino!

There was a problem in 2010. After an update on the Bitcoin network, it was found that approximately 185 billion BTCs entered 2 different wallets in a single block. (74638. block)

Quote

There was a problem in 2010. After an update on the Bitcoin network, it was found that approximately 185 billion BTCs entered 2 different wallets in a single block. (74638. block)

Source: https://en.bitcoin.it/wiki/Value_overflow_incident

Rollback was done after this event. All transactions were made prior to this event. The update was fixed and the network became operational again.

This did not mean a major problem in 2010 because the BTC did not yet make a big monetary meaning. And there were too many people who were holding BTC! As a result, the number of people affected was very small as it was not used as much as payment.

The same issue was recently raised in the Binance hack. But the community was very concerned about it. Because it's big enough to affect millions of people now. And such a withdrawal could deeply shake trust in the network. Maybe Binance could get rid of the damage, but no one accepted it because it was a process everyone could lose. And I think it's no longer possible for the Rollback Bitcoin network. everyone accepted it.

Finally, I found an article (write by hackernoon) about the biggest hack issues for blockchain.
You can read this article: https://medium.com/hackernoon/tech-explained-top-24-blockchain-hacks-in-history-first-half-40c390dc4a96

Topic: Freezing Funds from Hacked Exchanges - page 2. (Read 371 times)