How exchanges treat the stolen Money?

[btcdie]

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.

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[ololajulo]

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.

[bgaf]

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.

[Bagaji]

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.

[bitvalak]

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.

[3DBrushes]

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.

[Linkkoin]

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.

[Rodeo02]

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.

[BeManga]

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

[Taskford]

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.

[bitcampaign]

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

[Zeke_23]

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.

[ntsdm1]

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)

[albrots]

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.

[JeffBrad12]

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.

[angrybirdy]

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.

[spadormie]

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. 

[mrdeposit]

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.

[dimonstration]

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.

[BitHodler]

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.