Gopax south Korean crypto exchange and Binance partner halts withdrawal

[Chibit01]

https://x.com/CryptoPatel/status/2118666470649724970?a=IrIoay7YuOnhrijwPtY&s=19

Another exchange has suspended their withdrawal service and some other activities on the exchanges. This time it's not because of a hack, but it's as a result of them receiving a warning or hack threat via their email from a claimed hacker. Instead of waiting to get hacked, they are moving their funds down to cold storage to secure their funds until they are sure that everything is safe.

[Karl_3000]

So hackers are first warning people now before they unleash their bad capability? I do not see a good reason they halt deposit and withdrawal, what the exchange should do is to protect their customers cryptocurrencies. The exchange should know that hackers can get to their cryptocurrencies without the exchange getting online or not.

[sunsilk]

I do not see a good reason they halt deposit and withdrawal, what the exchange should do is to protect their customers cryptocurrencies. The exchange should know that hackers can get to their cryptocurrencies without the exchange getting online or not.

I think that's just fine and it's a quick reaction for them and that warning probably gave them the reaction time to do it before anything else happens.

While it's true that hackers won't give that warning if they're about to steal the funds and able to get into their hot wallets.

Maybe it's a hoax, maybe it's real and that's the protection that they've done for their customers. But for how long they'll think that it's safe to get back on operations?

[Chibit01]

The exchange should know that hackers can get to their cryptocurrencies without the exchange getting online or not.

The exchange should be aware of this, but it's most unlikely to happen. Because of the hacks which have happened, they always access the exchange system and authorised withdrawal, not with a wallet key but with online approval, which is only possible on their hot wallet. Since the exchange is moving their funds to a cold wallet it will require the hacker to gave access to the wallet keys, as exchanges with large sum won't be using a wallet protected by only one key excluding passphrase, & multisig.

Maybe it's a hoax, maybe it's real and that's the protection that they've done for their customers. But for how long they'll think that it's safe to get back on operations?

They did not give the actual time. It would be, my guess is, until they have carefully diagnosed their system to make sure there is no threat and maybe change their wallet access. Until then their customers will have to suffer.

[sunsilk]

Maybe it's a hoax, maybe it's real and that's the protection that they've done for their customers. But for how long they'll think that it's safe to get back on operations?

They did not give the actual time. It would be, my guess is, until they have carefully diagnosed their system to make sure there is no threat and maybe change their wallet access. Until then their customers will have to suffer.

Well, this is a better situation rather than learning that the exchange have been hacked already and funds of users have been taken.

While this will caused the users inconvenience for halting the withdrawals. And gopax should expect that when they allow the withdrawals again, there will be a lot of outflows from their users.

As per checking, they've got around 800k users. That's gonna be a huge outflow afterward.

[logfiles]

It's funny that they have to be reminded to move the funds into cold storage like they never thought of doing this before? Ladies and gentlemen, this are the exchanges hundreds of thousands of users trust their money with 

I think someone was just bluffing. Why would a hack warn and exchange of a potential threat yet they could just access the funds and withdraw them? This also shows that the exchange is not even confident about their security measures. I would avoid using the exchange If I were their customer.

[Dr.Bitcoin_Strange]

At least it's kinda good that customer can still request for withdrawal via customer support, unlike a situation where customers might not be allowed to even access their money until they rectify everything. However, storing coins on exchange is still a very terrible  decisions that anyone would make, maybe they don't care if they lose their money or not. I remember that there an exchange that have help customers funds since July till date and just few days ago, they released an information the exchange was hacked and that probably could even cause customers not get their money again.

[joniboini]

I remember that there an exchange that have help customers funds since July till date and just few days ago, they released an information the exchange was hacked and that probably could even cause customers not get their money again.

Did you mean "held"? I can't imagine what kind of help are they offering that cause customers funds to be frozen for months. Which exchange is this? Sounds like a huge red flag if they don't disclose a hack as soon as possible, though it's probably useless if they already sent an info that they will probably stop their business soon. No one is going to deposit funds.

[hugeblack]

if the freeze is temporary and serves to protect customer deposits, it is far better than losing balance and enduring years of litigation—at the end of which one might recover only a portion of the funds, or perhaps nothing at all. A 48-hour delay is not a significant issue. On the other hand, the fact that they were unaware of the vulnerability until they received an email notification suggests that the platform is in urgent need of a review of its systems.