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.

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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.

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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.

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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.

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Quote from: ?? on ??

Well this depends for every exchange in part, some exchanges might give some insurance but don't know how much, like Binance does when hack happen, but some might don't give nothing back, they should have log of IP and if there is unknown ip then for sure a hack can be involved.

If the exchange is kinda unpopular and having short financical they can't reimburse if there is hacking happen to the exchange whether outside or inside job. I usually only stick to the most reliable popular exchange but there are times when I need to use those 3rd tier exchange just for temporary and can't help but feeling anxious. Using unpopular exchange is sure like a rollercoaster of emotion unlike when everything is already trusted like in any popular exchangs out there and the 3rd rate exchange usually dont care where your money comes from.

Golftech

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Quote from: zhekinsp on November 25, 2019, 09:35:00 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?

You can't prove that you actually own that money,if you do then you made that transaction but whatever no exchange will treat any hacked money as something illegal to trade if there is no interference from governments.But if someone traded lot of money which was hacked then you may find the user if it was from KYC verified account but chances of happening is less.

Yes right, the exchange will not entertained the claim if there's no government interference, the money will treated as another investment not unless its a huge amount and there's unexplained behaviors. You can easily say that it's your money being transferred to their exchange but its hard to prove it you need to show detailed information before the exchange will take any action about your concern if ever that you have strong case.

ttcsalam

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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?

You may have an account on multiple exchanges. You cannot blame anyone else for this. Because your wallet is a secret to you. You cannot blame anyone else for stealing or hacking it. You need to be aware of yourself.

wajik-tempe

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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?

There are no regulation or law that can take down or arrest the exchange owners if they turn out scam. But good exchange won't do that because if they can build trust to the people and they will attract more customers and they will become rich just by the transaction fees and trading fees.

JahriMeayer

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Steal of money on the exchange has often happened in all of these cases because there are security bugs in the market but take it easy if a large exchange like binance already has a way to solve this problem by creating a Secure Asset Fund for Users (SAFU) so if there is hacked at the exchange, your money remains safe but remember not all markets have this SAFU system so be careful choosing exchange

ragavancoin

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How can you find the hacker which exchange they have deposited your amount? If you came to know also the particular exchange cannot help because they are not responsible for your amount, they are taking care of their customers amount only. as my knowledge if you lose amount due to hackers in crypto world it will be gone case you never expect it will be come back to you again.

Doell

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as far as I know the exchange will contact your account that has been hacked and will freeze the recipient's account ,before that there will be questions and certainly the funds will return when the recipient's account is frozen and then transferred manually to your account that has been hacked

Prompyboo

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if your account was hacked through your fault, then, of course, the exchange doesn’t care - you yourself must take precautions, but if there is a major hacking of the exchange, then as rule exchanges compensating lost funds to users

upyem2k

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I doubt if there is anyway an exchange can possibly know if a crypto asset traded on their platform is a stolen one. I completely doubt it

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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?

You can't prove that you actually own that money,if you do then you made that transaction but whatever no exchange will treat any hacked money as something illegal to trade if there is no interference from governments.But if someone traded lot of money which was hacked then you may find the user if it was from KYC verified account but chances of happening is less.

StephenJH

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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?

The last hacks in well-known exchanges change my point of view towards the multi-layer security of the exchanges, I never hold more than 2 BTC on a single exchange. When the Binance has used the SAFU funds for paying the losses of hacked accounts, they discuss in Twitter how to prevent future hacks. The re-org idea of BTC blockchain which is a horror decision for punishing hackers by Biannce CEO was my biggest shock during those hard days.

Ridwan Fauzi

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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?

It will be difficult to guessed, let make an imagine if the hacker know your password/private key and etc, does the exchange know when there is someone (not you) has logged to your account? I guess they didn't know it.

That is way, they warn you to use high security level such as to activated the google authenticator on your device. Because just only you who will know the code, with mean just only you who can be able to log in.

stephanirain

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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?

If that will be the case, then the exchange will most likely implement KYC for some reasons. They needed to confirm your complain first or else, many will abuse it by lying that this particular transaction for example is not them and pretend they have been hacked to get their money back from paying someone else. It will be complicated and we will be regulated so, it will be difficult to compromise between that and our anonymity.

BitHodler

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Quote from: bitvalak on November 25, 2019, 06:58:49 AM

But if you say an opinion, I think they clearly won't want to respond to your report because hacking is hard to find proof of because of internal factors.

That's common sense stuff. If an exchange would allow that to happen even once, they will be flooded with fake hack reports from people (frauds is a better term for them) thinking they can make a quick buck.

I don't think I have even heard of non crypto services to do that. It just doesn't make sense because of how much money there is to lose. In this case I'm happy with exchanges being neutral/conservative with such events.

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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.

mrdeposit

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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?

It depends on the exchange itself. Most large exchanges keep the required amount of money in the cold wallet, and it can be used to recover when they are hacked. Because your or project developer has no mistake in this regard. This is directly related to the security problem of exchange and should solve the problem themselves.

spadormie

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If the stolen money was part of the cold wallet of the exchange, I think that your funds are safe and that made them not to treat their loss since that's their own. All they can do is to find the hacker and sue him in the international court. But, if it's in your wallet on their exchange and made a withdrawal without your permission, they don't take for an account.

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Quote from: ntsdm1 on November 25, 2019, 07:39:51 AM

Quote from: ecnalubma on November 24, 2019, 09:08:32 PM

For sure stolen funds normally goes in and out of Binance however no exchanges can detect whether those funds are stolen, but they can only flag stolen funds that are huge with questionable source but for smaller funds consider no chance.

I think if the one who stole the funds will see that they are transferred to the exchange, it is still possible to write to the support service of the exchange and at least freeze the withdrawal of funds.(I have no exact information, it's just my guesses)

You need to have strong evidence for them to happen. Freezing funds can't be executed right after someone reported that the funds in that account were stolen/hacked funds. Also, most of the time, the support team is not responsive so it will take time to reach them and ask you for evidence. If that will happen, the hacker most likely withdraws the funds already.

JeffBrad12

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I really guess that the government will just lock up the account that have suspicious transaction for some period of time while also investigating and this happen only if you have solid proof or a government tells them that they found illegal money got into the exchange's wallet. Otherwise they will just dont care but fortunately nowadays they require KYC to prevent AML aswell as preventing any stolen money from being cashed out from their exchange and that ofcourse require cooperation from both sides fastly otherwise it will just gone.

albrots

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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.

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Quote from: ecnalubma on November 24, 2019, 09:08:32 PM

For sure stolen funds normally goes in and out of Binance however no exchanges can detect whether those funds are stolen, but they can only flag stolen funds that are huge with questionable source but for smaller funds consider no chance.

I think if the one who stole the funds will see that they are transferred to the exchange, it is still possible to write to the support service of the exchange and at least freeze the withdrawal of funds.(I have no exact information, it's just my guesses)

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Quote from: bitvalak on November 25, 2019, 06:58:49 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?

As long as you have strong evidence I think they will be responsible for the report you make.
But if you say an opinion, I think they clearly won't want to respond to your report because hacking is hard to find proof of because of internal factors.

I think even if you have strong evidence, they will need to investigate further and ask for more detailed information to determine that the funds are really hacked or stolen.

Yes, it will be another thing that they might not respond to the report since it will be hard for them to know and will gather proof that the report is legit and not a fraud.

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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 think it's true of some people who say here, because we don't have solid evidence to show it is your money, whereas they are stealing your funds and even though you also know what exchanges they use to sell your bitcoin, it will be in vain if we complain let alone report the owner of the exchange, because they maintain the convenience of their users and it is impossible to do let alone freeze their users' money, that way will worsen the name of the exchange, if it is a false accusation

Taskford

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Quote from: BeManga on November 25, 2019, 07:24:34 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?

if you have some evidence maybe the exchange will freeze the user account
usually exchange just freeze the account of the suspect to stop them from using their platform
but I'm not sure if they will give back the funds to the owner

For many years of staying on crypto space I don't see any exchange who freeze the account of possible attacker repays the affected users and I don't actually know what will happen since it's still a mystery on where does the money goes if certain case will happen. But actually know the hackers got fast hands and they will be detected late and already withdraw huge amount and provably if they are left maybe a little percentage only which cannot cater all the user who's funds are stolen.

BeManga

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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?

if you have some evidence maybe the exchange will freeze the user account
usually exchange just freeze the account of the suspect to stop them from using their platform
but I'm not sure if they will give back the funds to the owner

Rodeo02

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Quote from: bitvalak on November 25, 2019, 06:58:49 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?

As long as you have strong evidence I think they will be responsible for the report you make.
But if you say an opinion, I think they clearly won't want to respond to your report because hacking is hard to find proof of because of internal factors.

And the procedure is takes that long before you can give all the requirements needed the hackker move the funds already in another wallet and you will not know where wallet it is only exchange knows the details of that transaction. But hacker will do anything to make it hard for them to be tracked so he will use different exchange to make it more successful to havr clean BTC.

Linkkoin

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There had been some cases already, where stolen funds got frozen by exchanges. As well, with FATF recommendations coming into force, there will be a requirement to verify both sending and receiving parties. This aims to exclude stolen funds from being used. This will have some side effects, like removal of privacy coins from the list of available coins/tokens.

3DBrushes

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Quote from: Drai on November 25, 2019, 03:22:35 AM

If a hacker is smart enough to hack your wallets and steal your funds, don't you think they would be smart enough to liquidate that find without being caught? They would probably just deposit the funds in an exchange and withdraw it almost immediately, making it untraceable before the exchange would even have the chance to know about it, anybody can open an exchange account, infact a single person can open hundreds of accounts and operate them from the same device.

Ofcourse. Hackers are not definately dumb. They will definately have an exit plan. Infact they will plan it before the hack. If the huge amount of money is being transferred anonymously then it is really risky for any hacker to liquidate. As you can see many exchanges and ICO hacked stolen funds are still not completely withdrawn.

bitvalak

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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?

As long as you have strong evidence I think they will be responsible for the report you make.
But if you say an opinion, I think they clearly won't want to respond to your report because hacking is hard to find proof of because of internal factors.

Bagaji

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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 don't think it is there responsibility to help you track your stolen funds because there are so many factors that need to be taken into consideration. Things like how would the exchange be sure that you are the original owner of the said funds been transferred to there exchange because your own identity is not known to the exchange and that will make it difficult for the exchange company to help you recover your said funds.

bgaf

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Quote from: _IRMAN on November 24, 2019, 09:24:45 PM

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?

If your money is hacked and then deposited into an exchange of course the exchange will not be held responsible because it is not their fault but your own fault

If the money was hacked on the exchange and the incident happened on the exchange internal system then I think they are held responsible for this. The exchange can't refund if youre hacked into youre own fault but if the exchange is proven to be he one hacked including money of the trader then I think they should replace the loss money.

ololajulo

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Quote from: SolarWindMiningCompany on November 25, 2019, 06:06:25 AM

Quote from: sikke on November 24, 2019, 07:39:34 PM

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?

What proof do you have in terms of actually proving that the funds involved are the exact funds that you got hacked for?

It's all 'he she, she said'. Unless you have rock solid proof I think it's unreasonable to assume that exchanges will freeze someone's account in particular just because someone complained that he/she may be the hacker/scammer behind a fraud.

Of course, you could try, but I doubt the outcome will be positive.

In some cases of a theft or unwise hack, for example 7m tokens worth millions of dollars is stolen from a project developer Wallet might be transfered to Binance to be sold immediately, if Binance got wind of the information, the either suspend deposits or freeze deposits. In most cases the indices can easily be calculated in huge volume transactions but them cryptocurrency decentralisation makes it uneasy most times

This deserves more concern than the hack from an unknown Identity. Scams need to prosecuted at all cost. When they are not contolled people could take law into their hands. Imagine an ICO scammer from my investment walking on my street and I saw him. He wont leave unhurt. Exchanges are incapacitated in a way, they dont monitors transfer to know which comes from a hack or scam but I think at a point where such transaction is noticed exchange involved can be notified.but things had changed, some exchanges even benefits from the scam.

btcdie

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It cannot be ascertained, depending on the exchange and the amount of funds stolen. if something like that happens, it might be purely a user error, because the exchange has strong security. The exchange cannot confirm or detect whether the withdrawal is from you, but as far as I know, an exchange that has more security uses 2FA code, so it is impossible to hack, unless your email and mobile number have been taken over by the hacker. maybe if you lose a large enough fund, most likely it can be returned or you are assisted by the exchange.

SolarWindMiningCompany

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Quote from: sikke on November 24, 2019, 07:39:34 PM

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?

What proof do you have in terms of actually proving that the funds involved are the exact funds that you got hacked for?

It's all 'he she, she said'. Unless you have rock solid proof I think it's unreasonable to assume that exchanges will freeze someone's account in particular just because someone complained that he/she may be the hacker/scammer behind a fraud.

Of course, you could try, but I doubt the outcome will be positive.

In some cases of a theft or unwise hack, for example 7m tokens worth millions of dollars is stolen from a project developer Wallet might be transfered to Binance to be sold immediately, if Binance got wind of the information, the either suspend deposits or freeze deposits. In most cases the indices can easily be calculated in huge volume transactions but them cryptocurrency decentralisation makes it uneasy most times

Yaunfitda

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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?

Sad to say that exchanges will not act on any 'supposedly' stolen money. I mean how can you give them proof that it was stolen in the first place? Sad to say that they won't act on it.

And just imagine if everyone will complain about it, then how will exchange treat the case. I guess this is one drawback of this market, it's free and open, just saying.

TGD

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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?

Most of the hacker used Bitcoin Mixer Services to loss track of the hack BTC or other cryptocurrency. They are smart enough to do that and I believe this is basic from them. So exchange will never determine if BTC came
from hackers or not and also hackers usually sold there BTC over the counter or in deepweb. They will never sell there hack BTC to a place that might gonna exposed there privacy itself.

the rise

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if there are errors from users about some level of exchange security that is not being used, then they will not do anything, this is already included in the terms and conditions. However, if the hacks occur on the core exchange system, so far they have carried out a backup and maintenance process between hot and cold wallets, they ensure that user funds are not reduced at all with a fast refund program.

mu_enrico

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If the thief is stupid enough not to use tumbler services, the exchange could freeze the account (with its balance). Moreover, exchanges usually have an alert system and mechanism to wait for some more confirmation for withdrawal. It gives them a sufficient window (time) to make sure no problem for the withdrawal, as mentioned earlier.

But usually, the stolen fund will first "washed" through tumbler services, or dealt over the counter (OTC). So "mainstream" exchanges could not do anything except standard KYC/AML practice.

bitsurfer2014

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

If you claim to the exchange about the money, Are they not responsible for taking necessary action? What do you think?

Most probably exchanges will not do any action even if you claim that the assets are yours because if they do so, this policy would be subjected to abuse.

Imagine a regular user depositing 10BTC to Binance and a malicious person could very well froze that assets if he claims he's the original owner of it and it was stolen! This scenario won't be good for an exchange business because no one will ever use it if he knows his funds could be frozen anytime by just a simple claim of ownership from somebody else.

In the first place, its our duty to safeguard our funds so that we will not face such issues - trying to recover lost funds within an exchange which I think would be futile.

Though I guess, this will not be always the case and that if you could produce a court order to freeze that account's assets, then I think that exchange would heed to that order but it would still be subjected for litigation and could be contested which could also be a long and tedious process. Imho.

Drai

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If a hacker is smart enough to hack your wallets and steal your funds, don't you think they would be smart enough to liquidate that find without being caught? They would probably just deposit the funds in an exchange and withdraw it almost immediately, making it untraceable before the exchange would even have the chance to know about it, anybody can open an exchange account, infact a single person can open hundreds of accounts and operate them from the same device.

zulfi125

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First of all, you should add 2FA in any exchange for security reasons so that 2FA can protect your account but if your phone hacked than 2FA can't protect you, in some cases, mobile was hacked and 2FA also hacked. If your funds were stolen and transfer to another wallet than exchange will not responsible this stolen may be for your negligency.

niisarearning

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If somebodies wallet hacked means their private key is compromised . That mean both are holding private keys . Here we have to remember proof of keys concept . Who is having the key of wallet he will be the owner . For small amount or individual wallet hack nothing can be done . Even big exchange hack only couldnt able to help out . So in crypto space we are responsible for our private keys . Exchange cant help it seems . Even peopel are selling wallet for fiat currency nothing can be proved once your private key compromised

lighpulsar07

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Well it depends on huge amount of bitcoin/altcoin stolen they usually ignore it if the amount of stolen money or cryptocurrency unless if the original owner of that money warned the exchanges to block the wallet address to deposit in the site, and if the huge amount of money was stolen ie like what happened to bitfinex the exchanges will not let through this kind of transactions. Although hackers will sell it on underground instead of legal exchanges since they will comprimised their identity.

TheClownSong

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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?

Some exchangers blacklist deposits from wallet addresses that are indicated to have originated from hacking. This is a good step because it can isolate hacked tokens or coins so that hackers find it difficult to sell and in the end they give up to do it again.

irsykes

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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?

What i know is, maybe it will depends on the case. If personal or individual users who get stolen, the exchange will ask us for official report from law officer. And then they can reveal ID of the account owner. But if must wait the process, balance usually will already withdrawed to another wallet and we can't do anything. But if it is a big money that stolen like wallet of an exchange attacked by hackers, usually other exchanges will do something like freeze the account or wallet of users who received the money.

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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?

They will freeze it in the wallet until there is more discussion about that, i just know some exchange sites are halting the stolen funds and if the exchange site knows where is it coming from and then they will try to give it back. In some cases, exchange sites are not returning the stolen funds.

Remember the owner must do a lot of verification to get back their money or sometimes they will create a report to the regulator about that. You have need to prove with a lot of documents and proof to get back your money.

This is a long process to do.

ajiz138

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if there is authentic evidence that your funds were stolen and hacked by someone else and transferred to the Exchange, it might work. But it is very difficult to prove that, it's your own fault and even the Exchange will not interfere with the theft that occurs outside their platform. You must take care of your own wallet because it is your responsibility, if a loss occurs it will be difficult to restore it even impossible anymore.

goaldigger

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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?

If you got hacked then it will be hard to get it back and even exchanges can't help you to get it back. They are responsible on securing your funds while on your wallet but if you fail to protect your wallet details on your side, then it will be hard for exchanges to help you and it will be hard to defend to them that hackers really got your money, any proof that you submitted is still subject for investigation. If you are not confident with your exchanges right now, then use the top exchange and still protect your money on your own.

Fundamentals Of

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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?

It depends on the particular case. There was a time when Binance and a few more exchange froze the accounts of certain people because it was believed to be the accounts where hackers are sending their stolen Bitcoin. This applies especially when large amounts are involved and there is enough information reaching the heads of the exchanges that there could be a stolen Bitcoin deposited in their exchanges. But in terms of small amounts, I think it is more difficult for them to act on them, more so because of the lack of hard evidence.

_IRMAN

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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?

If your money is hacked and then deposited into an exchange of course the exchange will not be held responsible because it is not their fault but your own fault

ecnalubma

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For sure stolen funds normally goes in and out of Binance however no exchanges can detect whether those funds are stolen, but they can only flag stolen funds that are huge with questionable source but for smaller funds consider no chance.

BlackFor3st

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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?

Of course the other exchange is not responsible for it instead the exchange where your money has been stolen or hacked is the one responsible for it. The same on what happened to Binance as they lost a huge amount due to leak of their security in short they were being hacked so what they did is they replace all the money that were being stolen by the hacker.

After that, I am not really sure on what is the move of Binance but what I am sure it they were not able to get back their hacked money. That is how the crypto society work.

sikke

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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?

What proof do you have in terms of actually proving that the funds involved are the exact funds that you got hacked for?

It's all 'he she, she said'. Unless you have rock solid proof I think it's unreasonable to assume that exchanges will freeze someone's account in particular just because someone complained that he/she may be the hacker/scammer behind a fraud.

Of course, you could try, but I doubt the outcome will be positive.

HerbertMarcel

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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?

Topic: How exchanges treat the stolen Money? (Read 769 times)