Almost lost all of my coins in an exchange last week

[Bitcoin Guy]

(I hesitated to mention the name of the exchange in order to protect my existing account still in there.)

I started to use this exchange almost 4 years ago.  There were no any issues till recently.  Last Dec I logged into my account (which I haven't done it for a while) and the first page showed up saying that they will discontinue my services in 14 days and asked me to move my coins out to their US counterpart because I am a US customer.  I was thinking to myself, it I had not logged in, I would never know about this because they did not contact me at all on this matter. So I contacted the US exchange and found that they do not serve customers in my state.  So during all these times, I was researching for way(s) to relocate my coins.  I contacted the foreign  exchange and told them the challenges that I am facing in finding a place to put them.  They just told me to move the coins out before I lose them and then no reply to my follow up email since.  

Last week, I got three automated emails from them at the same time.  
First email: request to reset password from [IP which is not mine] (and a 6-digit code was included for verification).
Second email: Successful password reset from that same IP.
Third email: Successful login from new IP..... to protect your account withdraw is disabled for the next 24 hours.
                   (Thanks God for this function with the 24-hour disable withdraw.)

This happening really got my attention.  I immediately tried to log into my account.  I entered my password 4 times (one time away from my account being locked) without successful as it had been changed.  Thankfully, I did not try the 5th time knowing that my account would be locked and I would not be able to get any help from the exchange.  I sent an email using an old email thread to them reporting the situation, but got a reply saying that my IP is from an unsupported country which they cannot service.

However, thankfully, I was able to go through the process by clicking on the Forgot Password link and reset my password.  During that process, they sent me an email similar to the first email received before with the verification code.  And by using the code along with my Google Authentication code, I reset my password.  During the next several days, I did my best to get as much information as possible on how and where to move my coins to.  By using a VPN tool (first time), a desktop wallet, a hard wallet, and a  coin wallet that works with the hard wallet I was able to withdraw most of my coins out.  Before I moved my coins out, my heart was so heavy and troublesome because I did not know when the hacker would attack again.  

Now that I got most of the assets out from there I am more comfortable to talk about it and to share my story.  Would this be an inside job given that they knew the US customers are vulnerable and helpless (since they cannot use their customer services anymore)?  Else, how can the hacker by passing the email code verification and the Google Authentication process?  This is still very unsettling to me.  


Added on Feb 4, 2021
Thank you for your feedback and suggestions.  I added the following information as many people had asked related questions on them.
-   The exchange name has been mentioned by others in this thread.  Please spent sometimes to look for it.  
-   After I pulled my last coins out from the exchange, I will try to contact them and present the incident to them so that they can investigate and, hopefully as a result, to improve their services.
-   In order to reset my password, I need to enter the passcode which was sent to my email + the Google Authentication code.
-   The old iPhone which has the Google Authenticator installed was not turned on at the time when the hack occurred (and it is not usually turned on in order to extend its usage life as the battery is no good).  And I had not kept the recovery key for the authenticator anywhere – I did not save it.  So there is no one, including me can recovery it.  I got the authenticator for years.
-   This is a question for myself (just thought of it last night) – why did the hacker change the password (which triggered the no-withdrawal-in-24-hour rule) instead of withdrawing the coins out right away?  To withdrawal any coins, both the passcode sent to my email and the Google Authenticator code are needed (same as the reset password requirement).
-   I really don’t believe that my email address was compromised.  It that were true, the hacker could redirect the 3 emails that were sent to me to junk folder when the password got changed and account was accessed from a new IP address.  Without receiving these emails, my coins would be done for.
-   By the way, I have no ill attitude toward the exchange.  I really like the exchange as it supports many altcoins that are not supported in many other exchanges.  The way they required both the security code from email and Google Authenticator to withdrawal added a strong security layer to the accounts (in addition to login with username and password).  Also, the no-withdrawal-in-24-hour rule after password changed was a saver.  
-   They provided good customer support services before they shut me down by sending an automated email saying that my IP was identified as from a country that they don’t support when I tried to reach out to them again.  So if you are an US customer and your account got hacked, there is no way for you to seek any help from them – at least within a short amount of time (24 hours?) – before your assets got moved out.

[dubst4r]

Glad you were able to get most of them out of there, this is the main reason why I like to have control of all my private keys and don't use exchanges for storage

[cryptoaddictchie]

That's indeed an awful experience. Good thing you've got your asset out. It seems that you've been hacked or compromise, but given the explanation you said about bypassing code or stuff. It's possible but if you are a careful guy whom not clicking any phishing tabs then there must be some inside job. Hope you can disclose the name of the exchange so we can be aware of this. There are lots of US exchange operating. Is it an old exchange?

[Coin_trader]

It can happened on any exchange since you are a US citizen. They are force by your country regulators to prohibit US citizen on using there exchange so this not there fault. You should not leave your coins on exchange at first place since you don't have full control on your assets there. I think that you can still claim your token in case you did not transfer it on time, they will just locked it and you need to undergo verification to claim it.

Sharing the exchange name will benefit forum member and exchange will never what is your account though. They are not monitoring the forum 24/7 and there are many user same case as yours.

About hacking, it depends on what exchange you are talking about, If its a low tier exchange, its possible as an inside job but if its Binance and other Big exchange I believe click some malicious link though.

[Wexnident]

Luckily you managed to notice it. You might want to throw away the email that you normally use and create a new one just to be safe, since you never really know if the hacker still has access to it or not, same with the exchange account. Just try using exchanges for trading instead of storing, just to be sure that your funds are safe. Idk much about how US exchanges work, but if it isn't a well known one, or the volume of trading hasn't been much recently, it isn't anything odd for their customer service to actually be less active.

You might also want to check if any malware got in your pc. Did you even have 2FA enabled for your email? If no, then there's a chance that they got your email and pass, but if yes, then they may actually have remote access (somehow one way or another, im just putting out ideas).

[Bitcoin Guy]

Thank you for your feedback and supports, guys!

The foreign exchange was the "B" exchange that was mentioned by @Coin_trader. 

I had my coins there before the "No US Customer" regulation and had never anticipated that US customers would be excluded from the exchange.  And because my investment had gone from a peak point and down to a very lower one, I was too depressed to login to check on them.  And my strategy was to HODL anyway, I just leave them be.  If I were doing it again, I would put them in a hard wallet (but then why didn't I "ALL IN" on Bitcoin instead ).  However, not all the coins I have were supported by hard wallet such as Ledger. 

I do not have 2FA enabled for your email, buy I know better not to click on any links on emails.  Usually, I login to website by typing the company URL directly on the browser.  I haven't used a computer to login to this exchange for years; I used iPad.  If there were a security breach on my iPad, then they could access my other financial related accounts and done some other damages.  What puzzled me is that, even if we believed that my email has been compromised, then how about the Google Authentication?  I have it on my old iPhone which does not get turned on normally.

Just two days ago, I saw a video that someone who used a desktop wallet got hacked for $75K, possibly by the Chief of Communication Officer, who got fired (or quit) after the person reported the accident to their company.  Basically, he got an email from the CCO requested to reset some credential of this account and, after that, his coins got taken out.  He is a Youtuber who was showing off his $75K worth of coins on his wallet and then this happened.  (https://youtu.be/vHHbaWsUsuw)

[Reatim]

The Lesson Here ? we have been talking again and again for years and years now ,

" Never Leave Your Funds In Exchange for Long" Not your Key is Not your Bitcoin

Hope this thread will Open more eyes now , that no matter how trustful is the exchange is ? Yet they are running Business and their Business relies to our Coins on them , So what ever may the reason still they are interested in our funds and can do reasons just to take it away from us.

[Darker45]

The foreign exchange was the "B" exchange... 

Just as I suspected. But lucky for you you've managed to take most of your assets out. And while you still can, take them all out and move them somewhere very safe. Since you mentioned that you intend to HODL your funds, then I suggest you don't keep them in an exchange wallet. A hardware wallet is much preferable.

I won't jump into accusing Binance of an inside job. But I've also read a situation somehow similar to yours a few months ago. I can't find the thread but it was also a case of breaking into the account surpassing both email verification and 2FA. I'm not sure if it was also Binance but I think it was.

[Bitcoin Guy]

Hope this thread will Open more eyes now , that no matter how trustful is the exchange is ? Yet they are running Business and their Business relies to our Coins on them , So what ever may the reason still they are interested in our funds and can do reasons just to take it away from us.

US exchanges are more regulated for the most part and, therefore, relatively safer.   And you are correct, nothing should be safer than a hard wallet.

The foreign exchange was the "B" exchange... 

Just as I suspected. But lucky for you you've managed to take most of your assets out. And while you still can, take them all out and move them somewhere very safe. Since you mentioned that you intend to HODL your funds, then I suggest you don't keep them in an exchange wallet. A hardware wallet is much preferable.

I won't jump into accusing Binance of an inside job. But I've also read a situation somehow similar to yours a few months ago. I can't find the thread but it was also a case of breaking into the account surpassing both email verification and 2FA. I'm not sure if it was also Binance but I think it was.

If you were selecting an exchange for the long hold (beside using hard wallet) which one would you trust better?

The whole hack incident was very discouraging and terrifying.  It let me feel extremely insured.

If you can find the thread of the person whose account got hacked, please share.

[dansus021]

the name of exchange, the hacker probably hacked your account because you using same password on the other site because its happen to me, but website security nowadays getting better like 2FA.

and better using password manager and add Auth App for more secure

[meanwords]

It's unlikely that it's an inside job since it's Binance. Good thing you got your assets out though. Next time, just don't use any exchange as a wallet since they are easy to compromise. Binance is prone to hacking in my opinion because of the recent hacking events.

If you were selecting an exchange for the long hold (beside using hard wallet) which one would you trust better?

I wouldn't trust any. Any centralized exchanges are prone to hacking. CEX isn't even for long hold anyway. Just buy a hard wallet. It's better to lose convenience that losing your assets.
 

[irixo10]

First you registered on the exchange and have been trading for a long time and all of a sudden they no longer support US customers, that is to say, some sort of regulation might have forced them into stopping their services to US customers and thus hackers might have leveraged that opportunity to scam/hack people who are not aware or it could be you clicked on a phishing website thus disclosing your information. Also, issues like this, is the reason why keeping funds or assets on exchanges isn't a good idea because had it been those assets were in your personal wallet, you will not have any reason to worry. Nevertheless, it is good to hear that you were smart enough to take careful actions to save your assets, thus continue in that manner to withdraw the remaining ones. Lastly, just to be safe from phishing, always bookmark the websites you visit such as exchanges etc.

[blckhawk]

Fortunately, you were able to withdraw your stash out on that exchange, that is why it is not recommended for us to use the exchanges platform to store our assets because you don't have full control over it. No matter how much trusted the exchanges are don't ever leave your asset on it for a longer time especially if it is a pretty decent amount. Since you are onto holding you placing it on a hardware wallet is most recommended. You have a point that it must be an inside job 'cause there's no way they can change your password without your permission unless there's an insider on the platform. There's no hundred percent trusted or secured system exists that is why we should always be careful especially when it comes to money.

[SquirrelJulietGarden]

Notyourkeys.org
Newbies - Read before using exchanges or investing

I'm sorry for your loss but loss was happened and you can not get your coin back. It is lost forever but you can learn from this loss and avoid your fault and future loss.

Wallets on exchanges belong to the exchange operators, not you. So it is not your coins in exchange wallets. You are temporary owners of those coins and if exchange makes a scam exit before the day you withdraw it, you lose it.

[GbitG]

The Lesson Here ? we have been talking again and again for years and years now ,

" Never Leave Your Funds In Exchange for Long" Not your Key is Not your Bitcoin

Hope this thread will Open more eyes now , that no matter how trustful is the exchange is ? Yet they are running Business and their Business relies to our Coins on them , So what ever may the reason still they are interested in our funds and can do reasons just to take it away from us.

This is really good lesson for every one as need to learn and understand because I also face some big problems in early days and lost some good amount of funds which I lost in exchanges which is never been recoverable never leave your funds at any exchange for site because not your keys not your coins is very simple and straight forward message to all coin holders just try to have withdrawal from any where and put them in your own wallet is best option.

[kryptqnick]

Why not withdraw the coins altogether into your personal wallet? It's better to keep them there that on an exchange anyway. I'm glad that you managed to restore access to your funds and even though the process sounds pretty tough, at least it's working.
I don't think it's an inside job because I'm guessing it's a very reputable exchange which I remember decided to serve US customers separately due to the wish to comply with the US regulations. An exchange like that wouldn't try to scam you. As for bypassing the email code and Google Authentication, I think the first one wasn't bypassed. You did get the messages about resetting the password and the passcode. It means that your email was hacked, probably due to a weak password. And there are also instructions online on how to bypass google authentication, so it's also possible.

[Text]

Fortunately, you are a computer literate and you have successfully recovered and transferred your coins before you finally lose them.  I think, that your exchange account was hacked because it knows your log in details, it is really good and there is an automatic closing of the withdrawal of money at the designated time when there is suspicious activity in the account especially if it comes from another IP.  Maybe the exchange just locked this account until you try to access it again by providing these 2FA codes and resetting the password.  But it seems that the exchange failed to inform you of the cessation of their service in your country of origin, they should send you an ugent or important notice in the email about that not only on their site you can read.

[gurunanakji777]

I can say still you are lucky and you save your coins with your wit. I believe exchange has to follow the policy of your country that's why you have been given small time and in between hackers got the access of your Ac and luckily you were also more active than a hacker. Its not a small issue that somebody has access your Ac might be it can be a exchange official who hacks your Ac but I believe it's not easy to get access to user data and I suggest you to keep your coins in the Hardware wallet rather than on any exchange.

[Yamifoud]

No comment about an inside job but it happens that hackers will send us any malicious link that can possibly trick us and put everything in their control once you follow what the link said and mostly they are asking to reset your password. If they are done to this, you no longer login to your account.
One way to avoid this is to ignore most emails asking like that coz I know that it never happens from an exchanger asking for you to reset/change password unless if you are asking it personally. And that last tool that helps us to prevent unwanted withdrawals is in enabling 2FA authentication as surely they can't get anything from even you keep funds on the exchanger for a long time.

[cheezcarls]

As the old man said, “Not your keys, not your coins”

I suggest that if you want your coins or tokens to be safe, you must be willing to put em’ all in your cold or decentralized wallet where you are having the full custody of your private keys or mnemonic phrases. I only use exchange for day, swing and trend trading and not my storage.

It’s great that your coins and tokens are safe. Good job!