Bitcoin Forum

When coins are stolen from the web wallet, will the site pay back the victim money?

You should move this question to the beginners & Help section, here :  https://bitcointalk.org/index.php?board=39.0 

The short answer is NO, but it can depend on the circumstances and what 3rd party service you use. If the site is responsible for the loss, then they have an obligations to their clients to reimburse them, but in some cases these losses are so huge that they simply cannot reimburse people.

Individual cases will be handled on merit and most of these services will find a way to get out of paying, by simply pointing to some clause in their ToS.  ::)

Depends on the site.

Obviously not, Well most sites have provided different security that you need to apply and if you don't then that is somewhat the user's fault but it will surely depend on the sites given rules and regulations in what to do in this kind of situations, If the site has a certain fault with this kind of incident then I think that will automatically need to be given compensation if that is written in the contract or the terms settle with the site and the user.

Most probably not. Insurance is something still greatly missing in crypto world.

Any reputable site has to have some Terms and Conditions you signed that you agree.
And most of them write clearly there that they are not liable for the loses.
Just people read that only when it's late.

Also, if your account details are compromised, then it's 100% your fault and nobody on Earth would reimburse you.

It depends on the terms and condition of the contract and also the laid down rules the site operates on/with
That's why all this are imperative to go through before storing your coins, most crypto users ignore this, and have themselves to blame in the long run.

No. "Being your own bank" with cryptocurrencies comes with it's own responsibilities, and one of those main responsibilities is actually securing your funds. Which, if you're knowledgeable enough and if you have done your research, you obviously shouldn't be using web wallets in the first place if you have significant amounts of bitcoin/crypto.

It depends How the theft was done?
If it is a fault on the service provider (Hack,System error) then if you raise a ticket they should credit it back to your web wallet. After Investigation, If it is proved that the user fault caused the coins to be stolen then they will not be credited them back.

Actually not. Remember what happened to the hacked exchanges in the past? Out of probably a dozen exchanges, Binance was the only one to compensate for the lost funds. I don't see it being different with wallets.

I guess that Binance would repay its users that suffered from their recent hack.
In case with exchanges if they are not registrated somewhere in offshore then they have to pay refund. But this would only work if the exchange is centralized. In case with decentralized exchanges hackers are more likely to attack its users so in this case you would lose everything without any chances to get your money back.
Everything should work the same way with centralized services where someone else is holding your coins. The problem is that if they don't have money then you won't probably get a repayment. At least this is what happening with most exchange hacks.

What is clear is not, when your coin is stolen it means there is carelessness that you did and this is purely your fault. But even though it's not your fault, it's clear that no web wallet developer has compensated the user.
But if your coin is stolen from an exchange, it could be that the coin stolen from you was replaced by an exchange developer like binance yesterday.

If the mistake is because they are don't checking their security, they should pay back the victim money but that if only they have a good willing to keep their reputations in the member's eyes.
But if the mistake is from the member, then they will not pay back the money as they don't make a mistake and they will let the member realize that the security is not for the website only, but the member should take the responsibilities by enabling many ways to protect their account.

Insurance for cryptocurrency exchanges is a good idea if this is not already done. At any rate, Binance made the right decision of establishing a fund specifically for emergency situations like what it got into recently but I am not sure with other exchanges of their mechanism to deal with a thief that is not the fault of their members. Now, if the hacking is due to member's fault then the exchange has no obligation whatsoever to reimburse or return what was lost already. This is the reason why we have to be careful with our information.

Which web wallet are you talking about and which site you are talking about and what is the situation, if you want to ask something, be more clear and crisp so that everyone should understand what you are talking about. If the theft happened and you are no way responsible for the loss of your coins then they should reimburse, but how can someone steal a coin from one wallet ?.

no site will guarantee to refund them, as a cryptocurrency user you should know that and because of that we should choose an online wallet carefully so as not to lose funds that harm ourselves.

Stolen funds are not reimbursed by anyone when it is kept on decentralize network, even centralize bodies do not take responsibility if funds are stolen from their wallet. Its obviously wallet owner duty to keep his/her wallet secure by enabling 2FA or taking other security measures. If one does not follow instructions to keep his wallet secured then noone can be held accountable. Thefts happen due to some negligence by end customer most of the time so there is no point of reimbursement of stolen funds by any website owner.

It still depends on the scenario. If the exchange has been hacked, there's a chance of reimbursement but if it's because of our recklessness there's no guarantee that we could still have our funds back. That's the reason why we have to be keen and careful in securing our holdings.

Probably not. I haven't heard any news about reimbursement of missing or stolen coins. I
Exchanges aren't responsible for reimbursing our stolen currencies and we are the ones who are responsible for it so we should be mindful upon holding. Keeping our keys safe and in private would be a big help.

Too much to ask in the world of crypto.

The moment we enter the world of crypto, we should at least know the risks once we hand out our precious coins in a third party service e.g web wallets. Some people want to get out in the banking system but yet to understand what they are dealing with in crypto.

To answer the question; low chance to happen. Lucky if the said exchange will do but don't expect.

Funny how most web wallets won't be liable for such, and it's just in good will that some are reimbursing their customers in the event of a hack e.g. Binance with their SAFU fund. Perhaps it's time that exchanges and web wallet services be held liable for the losses their users incur in the event of a hack directly targeted towards an exchange as a whole, but if it's only on a single, isolated account, exchanges don't need to pay anything to the user as it is on the negligence of the user himself.

You should know the TOS of that website you use so you can already conclude on what's their take when it comes to these kinds of unexpected events in the future. Binance is exceptional because they have refunded all of those lost coins during the hack and they are fully taking responsibility with that case. But mostly, sites won't cover those lost coins on their jurisdiction if something unexpected comes but again it will depend on their decision. They may or they may not.

The case can be in two scenario the first is individual and the second is everyone.
The exchange might not pay the individual and claim to be the users faults due to carelessness but when such happens to everyone the exchange shall accept their faults.
Whether they will pay or not depend largely on their terms and conditions, it is always advisable to check exchange tos when registering and from time to time when they announce update in their tos.

It was discussed before. Insurers need quite a lot of knowledge about blockchain and they may not too eager to learn. Also if the number of insurers is small (and at start it's clearly small) they may ask too big fees.
Crypto volatility is again a problem. If one insures 100M and the cryptos double the value in less than one month then gets hacked, still half of the hot wallet is lost...


Yep, it was the decision that helped them not fall into oblivion.

Never!

Even the owners of the owners or creators of those web-wallets would have the disclaimer anytime that you should set out max security of your wallet.
They arent held liable for any loss of funds because this is mostly an issue with users itself unless if the web-wallet do have that breach or exploit then it would depend if they would
compensate but this thing is nearly impossible to happen.

Ive been using alot of wallets ( both web , app  ) but none of them has a disclaimer or notice about the funds limit but there are some that claims that they will refund the user as long as if their system will have its own problem ( e.g if thier system has been hi hack )  but i think they wont refund you if you have been scammed by someone else since its not their fault but thats your fault  .