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.

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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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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.

joshy23

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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

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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

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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

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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

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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."

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

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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.

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

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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

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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?

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

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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

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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."

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.

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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.

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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

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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.

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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.

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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.

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

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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.

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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.

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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

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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

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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

goaldigger

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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.

TastyChillySauce00

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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.

Jercyhora2

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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."

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