How exchanges treat the stolen Money?

[tracey77]

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.

[boris singer]

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.

[Cherylstar86]

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.

[nonbody]

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

[sunsilk]

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.

[Twinkledoe]

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]

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.

[adzino]

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.

[nonbody]

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.

[shoreno]

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  .

[milewilda]

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.

[TanakabZX]

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