Freezing Funds from Hacked Exchanges

[pawanjain]

There are a few exchanges that have better policies than the other exchanges and binance is one among them.
Most of the exchanges have been hacked but very of them have survived and recovered. Binance did a good job saving money for incidents like these.
This shows that Binance is customer focused and not money focused.

[joshy23]

There are a few exchanges that have better policies than the other exchanges and binance is one among them.
Most of the exchanges have been hacked but very of them have survived and recovered. Binance did a good job saving money for incidents like these.
This shows that Binance is customer focused and not money focused.

Indeed, there's incidents that binance also suffered from hacks and they manage to freeze funds for a while and make sure that everything will be safe, and look with the business right now, they continue to prosper and they still have many traders and investors working inside and trusting their service. They are good in allowing the funds to be kept and like what you have said they are focused with customers and how to take the long run securely.

[OneCoinMan]

I think that you should not consider these three events in one topic, since they all have different weights, different consequences, as well as different motives. I think that the IDAX exchange is just a big fraud, but UPBIT really did it all out so it seems like it’s a real hack, but I don’t really focus on it because it doesn’t give me anything, it’s worth thinking about my problems, and these guys a lot of money and they will cope with their problems.

[target]

One of the reason why Binance is a good exchange, they help the crypto community to block the hackers and of course by giving great services. Exchanges should have the limit on withdrawing funds everyday and if its a big money then KYC is important. So many hacking incidents on different exchanges, they should learn a lot from them. Freezing the funds is the best way to stop them, i just hope that it can transfer back from the real owners.

Binance were recognized by more users to be more trusted exchange since then. But its also the reason why some of the users now are avoiding it because of this practice, what possible reason would they be seeing to freeze an account?

All users who will withdraw fund past its limit will have to submit KYC but they may be asking where the funds are from. This would lead you to sending more documents too private.

[ganeshramk]

The point of Binance freezing the stolen funds is to prevent it from moving to another address and being laundered all over again and while giving time for the respective exchange to somehow investigate and cooperate with binance in order to return the money. This is also why KYC is a requirement in most of the popular exchanges so that they could trace who's the holder of that account but it could be a double edge sword. So, the money will not be distributed directly to the users who lost their money but instead given back to the exchange who got their funds stolen which is basically the same thing anyway and more efficient and of course, how Binance and other exchange could cooperate resulting to the return of the fund is not that simple.

I completely agree on this statement. Most exchanges are getting into KYC business now that too they are doing it properly. In future, this kind of tracing could be easier.

[Bitbtc8]

To me binance is really the best exchange in crypto space today, they always take good actions against stolen funds but i can't find new about stolen funds that got returned to right owners but since they are able to refund lost fund to users after binance got hacked is a good move from a centralized exchange, if all exchange can be like binance it will be helpful

[satgoldan]

I think that you should not consider these three events in one topic, since they all have different weights, different consequences, as well as different motives. I think that the IDAX exchange is just a big fraud, but UPBIT really did it all out so it seems like it’s a real hack, but I don’t really focus on it because it doesn’t give me anything, it’s worth thinking about my problems, and these guys a lot of money and they will cope with their problems.

Why did you get the idea that the IDAX exchange is a scam exchange !? Why make such high-profile statements if you yourself cannot provide any evidence. Surely you just took it all from the Internet and now you are writing to us here. Just treat everything as an outside observer, think about how it could be that the exchange that created its name for several years at one moment will turn out to be a fraud, rightly, nothing. It’s just that this news was released by people who don’t want the good of IDAX.

[sorrros]

I own some Dash coins, what do you think will this coin recover from the recent bad occasions? Maybe it would be better to sell it and buy really decentralized anonymous cryptocurrency that works on the revolutionary protocol - MimbleWimble - Grin  .

[Jercyhora2]

We aren't noticing that this problem are being so typical, if there any action do by others huge exchanges, it will lead to investors minimization.

[batang_bitcoin]

Is it possible that they give back the funds from investors who are victims of exchanges breach?

Yes, it is. That is one role of Binance being a leader in the world of exchanges. They are more than responsible not just for securing the funds of their customers but they are also helping to determine funds from hack exchanges or funds coming in to them to be laundered.
IMHO, there's a process for it and what that could be? I don't know but there's a protocol and investigation that should happen before releasing the fund to the rightful owner.

You're correct with that, but also, it is only possible for binance or any other big exchange since they have the capability to produce payments for the victims of exchange breach. But for those small exchange, it is impossible to retrieve their funds whatever please they make, their funds will forever be gone.
There is a process or legitimacy process where you will be needing to provide proofs that you are the owner of funds, amount in the exchange you had before the breach and many more.

Yup but OP just pointed out the huge exchanges which is very likely that they'll do. About the smaller exchanges, you're right that they might just forget the incident and tell that all funds are gone. It's simple as that.
This is the reason why the huge exchanges are becoming bigger because of this security and assurance that they are giving to their users. So being a user, choose a huge exchange and avoid smaller exchange but I know there are traders that wants to try the new ones.

[TRONTON]

To me binance is really the best exchange in crypto space today, they always take good actions against stolen funds but i can't find new about stolen funds that got returned to right owners but since they are able to refund lost fund to users after binance got hacked is a good move from a centralized exchange, if all exchange can be like binance it will be helpful

The safu method applied by binance does not affect the user's funds because it will be quickly recovered from the cold wallet to the user's wallet without them being aware, for some cases that have occurred the user only needs to wait for the maintenance process for some time.

This is most likely also done by upbit, but with a different mechanism due to different security policies with binance. Basically the exchange parties incur losses, but they set the alarm system in a fraction of a percent to prevent more losses before starting the freezing and further investigation steps.

[Casdinyard]

If your funds were stolen from an exchange, you should not count on getting it back. I lost money on the exchange Cryptsy a few years ago when they closed down after the owner stole the funds and went to China. It’s too hard to get the money back and to figure out who to give it back to.

Not really, the thing is if the entire site was hack it's covered by SAFU ( but still depends on the site ) then you can have your funds back though it will really take time BUT if it's just your account that gets hack then don't bother to recover it.

In your case, idk what exchange site is that but I wouldn't really recommend using random obscure sites.

[Bossfidelity]

There are some consecutive incidents have been happens about "stealing funds"

• Upbit
• Idax
• Dash

But let's talk about the usually scenario on crypto world which is "Hacking" and how exchanges helps to minimize and protect not only the funds of the investors as well as protecting trust of all crypto users.

There are narrative that saying exchanges like Binance, Bitfinex, poloniex etc. Practicing frozing funds from wallets that currently holds funds from hacked exchanges.

Is it possible that they give back the funds from investors who are victims of exchanges breach?


"Binance has a longstanding history stopping stolen exchange funds from being deposited and traded on its exchange. In January of this year, Binance froze all funds associated with the hack on Cryptopia. The exchange lost some $3.6M in cryptocurrency and Binance took efforts to freeze several batches of deposits, including Metal (MTL) and Kyber Network (KNC). Binance also froze all funds linked to money laundering from WEX in October 2018."

This is indeed a great move by binance. I'm even surprised that funds of such nature could be traced and frozen. I'm even hearing for the first time that cryptopia lost $3.6m. I had some funds in the exchange before the incidence and I also got to know that the exchange has been liquidated.

[bassbity]

"Binance has a longstanding history stopping stolen exchange funds from being deposited and traded on its exchange. In January of this year, Binance froze all funds associated with the hack on Cryptopia. The exchange lost some $3.6M in cryptocurrency and Binance took efforts to freeze several batches of deposits, including Metal (MTL) and Kyber Network (KNC). Binance also froze all funds linked to money laundering from WEX in October 2018."

This is what Binance does very well if there is a hacked exchange. Binance immediately secures funds because it does not want things to happen in the next exchange, many Binance steps are praised by investors because in that way their funds can be safe without being controlled by hackers, I know Binance's security is stronger than other major exchanges.

[Bezobraznike]

"Binance has a longstanding history stopping stolen exchange funds from being deposited and traded on its exchange. In January of this year, Binance froze all funds associated with the hack on Cryptopia. The exchange lost some $3.6M in cryptocurrency and Binance took efforts to freeze several batches of deposits, including Metal (MTL) and Kyber Network (KNC). Binance also froze all funds linked to money laundering from WEX in October 2018."

This is what Binance does very well if there is a hacked exchange. Binance immediately secures funds because it does not want things to happen in the next exchange, many Binance steps are praised by investors because in that way their funds can be safe without being controlled by hackers, I know Binance's security is stronger than other major exchanges.

   Binance is the best crypto-exchange for a reason. I didn't know what they did with stolen funds from another exchange, but their move
is amazing, I can say like others moves Binance makes. They are doing the best they can and investors and traders like to hear that.
   After reading this, I will think about buying more Binance coins, I have some, but more I read about them, more I like them and maybe
I should have more BNB in my wallet.

[TGD]

"Binance has a longstanding history stopping stolen exchange funds from being deposited and traded on its exchange. In January of this year, Binance froze all funds associated with the hack on Cryptopia. The exchange lost some $3.6M in cryptocurrency and Binance took efforts to freeze several batches of deposits, including Metal (MTL) and Kyber Network (KNC). Binance also froze all funds linked to money laundering from WEX in October 2018."

This is what Binance does very well if there is a hacked exchange. Binance immediately secures funds because it does not want things to happen in the next exchange, many Binance steps are praised by investors because in that way their funds can be safe without being controlled by hackers, I know Binance's security is stronger than other major exchanges.

Binance has a SAFU fund which is alloted in case exchange was hack to cover investors loss. This is what I like about then besides there security level. They assume that they will be hacked in future becuase there is no safe online. They anticipate always the worst case scenario which CZ is good about.

[Cherylstar86]

There are some consecutive incidents have been happens about "stealing funds"

• Upbit
• Idax
• Dash

But let's talk about the usually scenario on crypto world which is "Hacking" and how exchanges helps to minimize and protect not only the funds of the investors as well as protecting trust of all crypto users.

There are narrative that saying exchanges like Binance, Bitfinex, poloniex etc. Practicing frozing funds from wallets that currently holds funds from hacked exchanges.

Is it possible that they give back the funds from investors who are victims of exchanges breach?


"Binance has a longstanding history stopping stolen exchange funds from being deposited and traded on its exchange. In January of this year, Binance froze all funds associated with the hack on Cryptopia. The exchange lost some $3.6M in cryptocurrency and Binance took efforts to freeze several batches of deposits, including Metal (MTL) and Kyber Network (KNC). Binance also froze all funds linked to money laundering from WEX in October 2018."

This is indeed a great move by binance. I'm even surprised that funds of such nature could be traced and frozen. I'm even hearing for the first time that cryptopia lost $3.6m. I had some funds in the exchange before the incidence and I also got to know that the exchange has been liquidated.

On my opinion, it's a good move by binance as they do something good for those users of binance as they just want a user have a secure funds. Every one of us want a secure funds since the binance exchange do their own way we must aware next time so that we can do our own way of exchange process.

[ereborltc]

I think that most of the hacking incidents in the exchanges may be caused by internal mistakes. The exchanges are not operating well and they want to quit. So the ultimate loss is the interests of investors.

[boris singer]

I think that most of the hacking incidents in the exchanges may be caused by internal mistakes. The exchanges are not operating well and they want to quit. So the ultimate loss is the interests of investors.

There is no valid evidence yet, but Idax is indeed indicated to have committed a crime.

If they want to quit (another exchange), then the exchange will make a refund, they also don't want to have a bad reputation and end up in prison.

Most exchanges that were previously hacked continue to look for conditions to stabilize as soon as possible because they still have big plans for business development, eliminating the reputation that was built with hard work from the start is not an easy problem.

[StephenieDuong]

Its possible to freeze the funds from hackers, but only on big exchange or big payment company. Soon, i think hackers will find other way to get those money, they can go to blackmarket, deposit to small exchange to get clean cash... I thinks there should be more option to solve this problem soon, maybe tag those hacked coins with somethings.