How exchanges treat the stolen Money?

[stephanirain]

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.

[Ridwan Fauzi]

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.

[StephenJH]

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.

[zhekinsp]

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.

[upyem2k]

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

[Prompyboo]

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

[Doell]

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

[ragavancoin]

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. 

[JahriMeayer]

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

[wajik-tempe]

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.

[ttcsalam]

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.

[Golftech]

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.

[X-ray]

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.

[tsaroz]

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.

[beerlover]

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.

[key4co.in]

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.

[CarnagexD]

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.

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.

[Leonardo7]

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.

[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.

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.

[Sexaphiliac]

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.