How exchanges treat the stolen Money?

plast555

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Quote from: TanakabZX on February 12, 2020, 01:24:52 AM

Quote from: HerbertMarcel on November 24, 2019, 04:23:34 PM

I am curious to know, how Exchanges treat the stolen money or hack money? Are they really aware of it? Just think, your fund has been hacked and transferred from your wallet to another wallet and then it's deposited to an exchange. If you claim to the exchange about the money, Are they not responsible for taking necessary action? What do you think?

Which exchange got hacked and they never know about it? that's impossible mate, if you are in such position kindly say the name of the exchange, if large amount of money or bitcoin get stolen there will always be some tracks on the stolen bitcoin, if that bitcoin landed on binance it will be frozen

That's right, Did anyone hear that the stolen or hacked money has been recovered successfully? No, as far as I know, but the hackers are smart enough that the stolen funds are not directly deposited into the exchanges without erasing its traces by mixing. But if they do as you mentioned it can be frozen by contacting the exchanges.

TanakabZX

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Quote from: HerbertMarcel on November 24, 2019, 04:23:34 PM

I am curious to know, how Exchanges treat the stolen money or hack money? Are they really aware of it? Just think, your fund has been hacked and transferred from your wallet to another wallet and then it's deposited to an exchange. If you claim to the exchange about the money, Are they not responsible for taking necessary action? What do you think?

Which exchange got hacked and they never know about it? that's impossible mate, if you are in such position kindly say the name of the exchange, if large amount of money or bitcoin get stolen there will always be some tracks on the stolen bitcoin, if that bitcoin landed on binance it will be frozen

milewilda

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Quote from: shoreno on February 11, 2020, 01:14:46 PM

Quote from: nonbody on February 10, 2020, 09:16:14 AM

In my opinion, as an investor who encounters the theft of an exchange, it is the investor himself who suffers in the end. The exchange will not be responsible for such things and will not compensate investors for their losses.

they will refund only if its thier fault like what happen on binance before where they refunded their costumers but if its the users fault on why they lost thier coins , that wont be the responsible of the exchange . before we step in , in the exchange we already know that its risky because anytime the exchange can collapse so we shouldnt get shocked with the consequences that might happen . to the question if how they treat stolen money ? nothing . what can they do once the money is already stolen ? and they are aware with it once hacking had happen .

Hacking cant be detected out before its too late so there were no chances for it to be stopped and revert it back thats why never ever store your coins on exchange wallets for too long.This had been advised since from the beginning but people never ever learn until they do lost big time once hacks happen.Compensation would really just depend on a certain exchange and youre right we have seen this situation in time of Binance hack,
good thing that they do had that SAFU funds for such situation.

On topic, how exchange do treat up hacked or stolen money?It will vary if they would have that strict monitoring but most of the time hacked funds would be disregard yet tracing them
would be hard on the first place because no hacker is fool enough on depositing hacked funds without mixing it first.

shoreno

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Quote from: nonbody on February 10, 2020, 09:16:14 AM

In my opinion, as an investor who encounters the theft of an exchange, it is the investor himself who suffers in the end. The exchange will not be responsible for such things and will not compensate investors for their losses.

they will refund only if its thier fault like what happen on binance before where they refunded their costumers but if its the users fault on why they lost thier coins , that wont be the responsible of the exchange . before we step in , in the exchange we already know that its risky because anytime the exchange can collapse so we shouldnt get shocked with the consequences that might happen . to the question if how they treat stolen money ? nothing . what can they do once the money is already stolen ? and they are aware with it once hacking had happen .

nonbody

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In my opinion, as an investor who encounters the theft of an exchange, it is the investor himself who suffers in the end. The exchange will not be responsible for such things and will not compensate investors for their losses.

adzino

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As far as I know, if you can prove that the coins belongs to you and has been stolen with adequate proof, then you can contact the exchange and the exchange freezes their account until the dispute has been solved. Though it is very unlikely to happen, but I have heard stories were stolen coins were recovered and returned to the owners by the exchange. You will have to use trace your coins very carefully and hope that the scammer/hacker did not use any kind of mixer service to hide their tail.

sunsilk

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Quote from: Twinkledoe on January 13, 2020, 05:50:36 PM

Quote from: sunsilk on January 13, 2020, 05:40:42 PM

Do you know what you're saying? it's not about exchange hacking but it's about the deposits that's going to an exchange which came to be a stolen money. Like those bitcoins that will be transferred to Binance and it tends out that the address used came from the thief itself.

I don't know but maybe in coders technical knowledge, the developers can easily detect those stolen coins from addresses that will be tracked through their system. They can easily put a ban or red mark or asterisk, depends to their flagging signal to those addresses that will deposit onto their platform.

It is really hard to determine if the money deposited to a certain exchange is stolen or hacked. If it will be huge amount, then, might draw attention and further investigate to its sources. But if small amounts of deposits, I don't think exchanges are bothering to investigate where it coming from. Unless, the exchange has internal database of potential addresses that are in question, so once it is used in their exchange, it will give an alert signal so they can further do some inquiry.

Binance is helping through freezing the funds if they caught the deposit came from hacking. Yeah, it will be hard for them to determine it now because these hackers will do something to prevent it from happening or will just avoid depositing there.

But as long as if they have found the address used for depositing is already on their flag signal, they can easily take action and will help the affected ones. I have read from someone here in the forum that they've done this before and will keep doing it.

Twinkledoe

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Quote from: sunsilk on January 13, 2020, 05:40:42 PM

Quote from: nonbody on January 13, 2020, 09:20:11 AM

I think that the cryptocurrency theft incident, the exchange must take full responsibility, so that investors can rest assured.

Do you know what you're saying? it's not about exchange hacking but it's about the deposits that's going to an exchange which came to be a stolen money. Like those bitcoins that will be transferred to Binance and it tends out that the address used came from the thief itself.

I don't know but maybe in coders technical knowledge, the developers can easily detect those stolen coins from addresses that will be tracked through their system. They can easily put a ban or red mark or asterisk, depends to their flagging signal to those addresses that will deposit onto their platform.

It is really hard to determine if the money deposited to a certain exchange is stolen or hacked. If it will be huge amount, then, might draw attention and further investigate to its sources. But if small amounts of deposits, I don't think exchanges are bothering to investigate where it coming from. Unless, the exchange has internal database of potential addresses that are in question, so once it is used in their exchange, it will give an alert signal so they can further do some inquiry.

sunsilk

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Quote from: nonbody on January 13, 2020, 09:20:11 AM

I think that the cryptocurrency theft incident, the exchange must take full responsibility, so that investors can rest assured.

Do you know what you're saying? it's not about exchange hacking but it's about the deposits that's going to an exchange which came to be a stolen money. Like those bitcoins that will be transferred to Binance and it tends out that the address used came from the thief itself.

I don't know but maybe in coders technical knowledge, the developers can easily detect those stolen coins from addresses that will be tracked through their system. They can easily put a ban or red mark or asterisk, depends to their flagging signal to those addresses that will deposit onto their platform.

nonbody

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I think that the cryptocurrency theft incident, the exchange must take full responsibility, so that investors can rest assured.

Cherylstar86

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Quote from: HerbertMarcel on November 24, 2019, 04:23:34 PM

I am curious to know, how Exchanges treat the stolen money or hack money? Are they really aware of it? Just think, your fund has been hacked and transferred from your wallet to another wallet and then it's deposited to an exchange. If you claim to the exchange about the money, Are they not responsible for taking necessary action? What do you think?

On my opinion, regarding about that as far as my knowledge, the exchange have nothing to do about that as the exchange can have an income they are not responsible about your funds in which it could be from hack money or not. Also, those exchange are just relying from the users actions and basically they have nothing control all about that.

boris singer

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Quote from: tracey77 on December 12, 2019, 11:52:28 AM

Such situations are pretty common, just like using exchanges to money laundering or other crimes. People who do that think they are 'invisible'. That year might be crucial for crypto world because of AMLD5 guidelines, awareness about crypto crimes has risen. Also there are special methods and companies who deal with such issue. For instance Coinfirm, which is a partner with Binance, is a leader in analyzing cryptocurrency transactions to see if they went through the mixers and rate their risk level for AML compliance reasons. They just released their new Standard AML Risk Reports. Hope next year will bring a lot of changes.

their algorithm will only be triggered by a number of investigations in a large number of transactions, and only for matters relating to large problems for exchanges, I have not seen them enforce in detail for user-oriented cases of exchange, because pure responsibility is only from victims and exchanges only, especially from what the op mentioned on the first page, they have not reached that area.

tracey77

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Such situations are pretty common, just like using exchanges to money laundering or other crimes. People who do that think they are 'invisible'. That year might be crucial for crypto world because of AMLD5 guidelines, awareness about crypto crimes has risen. Also there are special methods and companies who deal with such issue. For instance Coinfirm, which is a partner with Binance, is a leader in analyzing cryptocurrency transactions to see if they went through the mixers and rate their risk level for AML compliance reasons. They just released their new Standard AML Risk Reports. Hope next year will bring a lot of changes.

Sexaphiliac

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I think it depends on the type of cryptocurrency that was stolen. In the case of ETH which can easily be tracked, the funds can be followed unless the services of a mixer is employed which will make it almost impossible to track. If a privacy focused coin is token, it will definitely be more difficult for exchanges to locate those crypto.

albrots

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Quote from: dimonstration on November 25, 2019, 08:39:19 AM

Quote from: albrots on November 25, 2019, 07:56:31 AM

The exchange will have difficulty detecting stolen funds if you do not report a burglary to your wallet. You must explain to the exchange how the chronology occurs until your money or assets are transferred to another exchange. They can only mark the wallet of the thief as a wallet that commits a crime. The hack will be frozen so that it cannot make any transactions until the surrender gives up.

While it is good to ask the support we need to be detailed in how it happen and provide proof. Some exchanges cannot do anything in stolen money but we should atleast try to recover it as much as possible by all means. That's why we need to be in a good support exchanges so they will take time to understand us and investigate or detect transactions for us.

Yes you are right, I have said that explaining the chronology in detail must also be accompanied by strong evidence in order to get strong support for investigating assets taken by hackers. Exchange support will work faster if all the evidence and chronology are clear and prove that the victim really lost his assets.

Leonardo7

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It's pretty difficult to tell if a fund is a stolen one, except it has been well reported and report carried out and the wallet it enters has ben flagged otherwise, anyone can claim their wallet has been hacked to blackmail fellow traders. Cryptocurrency is a complex entity.

CarnagexD

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Quote from: key4co.in on November 25, 2019, 11:48:58 AM

Quote from: HerbertMarcel on November 24, 2019, 04:23:34 PM

I am curious to know, how Exchanges treat the stolen money or hack money? Are they really aware of it? Just think, your fund has been hacked and transferred from your wallet to another wallet and then it's deposited to an exchange. If you claim to the exchange about the money, Are they not responsible for taking necessary action? What do you think?

I'm not really sure about how exchanges can handle this situation but In this case, I think the exchange has no right to seize funds of the person who deposited it, because there is no proper proof to ascertain that the funds were hacked from your wallet.

Exchanges has nothing to do with stolen funds at all, they don't have the right to seize the funds without having prior investigation and solid evidences thaf will point directly that the funds are stolen.

Quote from: key4co.in on November 25, 2019, 11:48:58 AM

Well maybe some exchanges will temporarily lock the account for investigation purpose if you have a solid proof, and it will be more effective if the hacker is KYC approved on the exchange.

Yeah, this is what I'm talking the prior investigation as proper and legal thing to do, freezing an account for suspicious act, this applies on huge amounts hundreds and millions. But KYC on exchanges is not that ideal for their business, KYC implemented exchanges tends to have less number of active users compare to non-KYC exchanges.

key4co.in

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Quote from: HerbertMarcel on November 24, 2019, 04:23:34 PM

I am curious to know, how Exchanges treat the stolen money or hack money? Are they really aware of it? Just think, your fund has been hacked and transferred from your wallet to another wallet and then it's deposited to an exchange. If you claim to the exchange about the money, Are they not responsible for taking necessary action? What do you think?

I'm not really sure about how exchanges can handle this situation but In this case, I think the exchange has no right to seize funds of the person who deposited it, because there is no proper proof to ascertain that the funds were hacked from your wallet. Well maybe some exchanges will temporarily lock the account for investigation purpose if you have a solid proof, and it will be more effective if the hacker is KYC approved on the exchange.

beerlover

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Well, they do have an army of lawyers so they do try their best to both get the money back and if not at least get these hackers punished in the eyes of law and jailed to an extend. However if they can't all they could do is accept the fate of the money and move on with it. I mean what could you do if the person who stole your money is nowhere to be found and there is no trace and basically all gone?

You can't follow up because you have no idea who stole it. Long story short it is a two way street, either you know who stole the money and sue them and try to get the money back or you have no idea who stole it and eat the loss and continue operations. If the exchange wasn't protected enough and lost too much money that means they may go bankrupt but that means their security protection was horrible.

tsaroz

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Quote from: HerbertMarcel on November 24, 2019, 04:23:34 PM

I am curious to know, how Exchanges treat the stolen money or hack money? Are they really aware of it? Just think, your fund has been hacked and transferred from your wallet to another wallet and then it's deposited to an exchange. If you claim to the exchange about the money, Are they not responsible for taking necessary action? What do you think?

Exchanges has been coming together to track the money stolen or hacked from the exchange. But they won't react about your hacked coin as you would not have sufficient proof to and tracking to justify the ownership of the coin. Even if you have that, the amount would be too small for the exchange to track over. They may change their mind for a large amount.

Topic: How exchanges treat the stolen Money? (Read 789 times)