Exchanges which does not pay user after a hack, what example do they set?

[selfmade 7]

Hello friends, today i just went through a news which announced that; "Spanish Crypto Exchange 2gether Won't Reimburse All Stolen Funds From the 2020 Hack"

 

This kind of thing started with cryptopia, they got hacked and they did not pay all user until now and now this! guys this is getting serious and we should take it seriously.

for me this sets an example and i think from now on I would be careful to put too much money on an exchange and also I would make sure not to trade is small time exchanges sites, which have the risk of not paying after they get hacked.

 

So what example does it set for you?

[Waseem jabbar 185]

Sorry I have no idea about it . Actually i am beginner so that why I have no knowledge and experience about it. But please give me more information about it and shear on that platform

[Ayesha990 0]

My friend every exchange have backup of all users incase of any hacking.Its not easy to hack any exchange its security is very strong and if such happened than every exchange have Backup of all users data its not possible a big system is without any backup.Second all users amount are shown to the users in figures and exchange can provide them again by just thier backup system.

[selfmade 7]

44 minutes ago, Ayesha990 said:

My friend every exchange have backup of all users incase of any hacking.Its not easy to hack any exchange its security is very strong and if such happened than every exchange have Backup of all users data its not possible a big system is without any backup.Second all users amount are shown to the users in figures and exchange can provide them again by just thier backup system.

But don't you see the proof of exchanges getting hacked and then they could not pay their users?? we have seen cryptopia and now this Spanish exchanges, they just got hacked.

[Syedbesharat 5423]

After cryptopia loss I transferred my half funds to cold storage and half to big exchanges like Binance, coinbase, bittrex, yobit. Which are more secret and their is hope I could get my funds back if hacked happened. So always find reliable exchanges for trading every exchange isn't suitable for investment. If you have time read their policies and get hold of out come if something goes wrong. 

[selfmade 7]

On 1/27/2021 at 10:57 PM, Syedbesharat said:

After cryptopia loss I transferred my half funds to cold storage and half to big exchanges like Binance, coinbase, bittrex, yobit. Which are more secret and their is hope I could get my funds back if hacked happened. So always find reliable exchanges for trading every exchange isn't suitable for investment. If you have time read their policies and get hold of out come if something goes wrong. 

I know binance was hacked once, this proves low security, but it did not affect users as they had enough insurance.. now with the prove of low security, what if binance is hacked the amount it can not bear to lose, would it not end up like cryptopia and the others?

[Ghulam Jellani 0]

Hlow friend 

I m new here and i have not completely information about the exchange process thanks a lot my friends you give me some information and more knowledge but i thinks exchange process is very easy and safely for backeup system 

[selfmade 7]

5 hours ago, Fokachopper said:

That is why to avoid that is that if you are going to exchange crypto, it is better to use powerful exchangers such as binance, coinbase, yobit and some other of this family of exchangers that have impressive security to avoid hacking. You have to always be informed, you have to read more.

We are both on the same side, but exchanges which did not pay they did not pay because too much was hacked, even for those exchanges which we trust the most of is hacked much enough, there is a possibility for them to fail to pay as well.

[Whited35 15285]

On 1/27/2021 at 9:41 PM, selfmade said:

This kind of thing started with cryptopia, they got hacked and they did not pay all user until now and now this! guys this is getting serious and we should take it seriously.

At least Cryptopia liquidators are all set to refund users' assets. As you know, most of the exchanges were unware of the possible biggest attacks until it was happened to them. Hacking to lose the users; assets is not good news and most of the centralized exchange sites have to learn from their previous mistakes to protect users' assets from the hackers. 

[Bitpapacoins 61]

On 1/27/2021 at 4:56 PM, selfmade said:

So what example does it set for you?

If an exchange is hacked, government will look into the matter, and will want them to return customers funds, but there are some certain cases the exchange will not be able to, if such happens, nothing will be done. But let us be more positive about exchanges because they are making their security tighter now. 

[tienda 8776]

Sincerely I don't think a website exchange who got hacked, will refund their users! This is the cryptocurrency adventure, before we introduce our self to it, we should to investigate first the best and safest website exchange platform then we form part of a such platform. Generally the new website exchange are weak to be hacked.

[Dormilon 2183]

On 1/27/2021 at 11:56 AM, selfmade said:

This kind of thing started with cryptopia, they got hacked and they did not pay all user until now and now this! guys this is getting serious and we should take it seriously.

for me this sets an example and i think from now on I would be careful to put too much money on an exchange and also I would make sure not to trade is small time exchanges sites, which have the risk of not paying after they get hacked.

 

So what example does it set for you?

@selfmade The cryptopia thing was unfortunate, there are still many users without collecting their money, in the exchanges that do not have enough liquidity, a hack is something very bad, because they do not have the capacity to replace the users with the money they have on the platform, that's why You have to be very attentive where to leave coins for trading, in exchanges you have to do the trade and take the coins to personal wallets so that they are safe and avoid possible losses due to hacking or scams, there will always be this type of platform not very serious, but our job is to get away from them as much as possible, greetings.

[selfmade 7]

5 hours ago, Bitpapacoins said:

If an exchange is hacked, government will look into the matter, and will want them to return customers funds, but there are some certain cases the exchange will not be able to, if such happens, nothing will be done. But let us be more positive about exchanges because they are making their security tighter now. 

The government can not touch decentralized exchanges besides when they are hacked the government can punish them in any way, but still their money is stolen the and they can not pay back the users, wherever happens to them you are still in a loss.

[guatazoo 7150]

On 1/27/2021 at 6:56 PM, selfmade said:

Hello friends, today i just went through a news which announced that; "Spanish Crypto Exchange 2gether Won't Reimburse All Stolen Funds From the 2020 Hack"

 

This kind of thing started with cryptopia, they got hacked and they did not pay all user until now and now this! guys this is getting serious and we should take it seriously.

for me this sets an example and i think from now on I would be careful to put too much money on an exchange and also I would make sure not to trade is small time exchanges sites, which have the risk of not paying after they get hacked.

 

So what example does it set for you?

There have so many legit exchanges but their guarantee after getting hacked is very low, so that's why we always advised to be using the most leading exchanges platforms such as binance exchange which was getting hacked but it was not have effect to the users balance. 

[Raqeebzy 6456]

So long as they are regulated by the Spanish government, they need to get sued in my opinion. If not, it would be hard for investors and traders to get justice and recover their funds.

With the rampant hacks and scam exit common with exchanges, I believe traders needs to be very careful in choosing the safest. Regulated exchanges with insurance needs to be considered first.

[Crpto❤️ 55]

Yes you are right that we have to not join these forums which are new in exchange because they cannot pay back after hack and due to this issue we have to use exchange with high rating in market and exchange offer income through that. because these would be more trusted and helpful to us to make sure that our income is safe there.

[SayanCrypto 28]

this is sad to hear about since the attack was $1.4 million only. Now this is so huge compared to us individuals but it is low compared to attacks on other major exchange sites which they were able to refund.

This will make future customers think for a while when they decide whether to join the exchange or not.

[Imadaliaa 4]

Yes you are right we have not join these forums

[rekter 8129]

On 1/27/2021 at 5:56 PM, selfmade said:

 

This kind of thing started with cryptopia, they got hacked and they did not pay all user until now and now this! guys this is getting serious and we should take it seriously.

for me this sets an example and i think from now on I would be careful to put too much money on an exchange and also I would make sure not to trade is small time exchanges sites, which have the risk of not paying after they get hacked.

 

Thing is, people have a short memory on how trustworthy exchanges can be. Todays exit scams are "hacked" exchanges. Which is very hard to prove to be an inside job.

 

Before Cryptopia that there were top exchanges like Cryptsy And before that Mintpal/moolah, which were considered as biggest whale friendly ones until they exit scammed (or got hacked). It took a while for trusted exchanges like Bittrex to get users trust back by regulating everything. It didn't took too much time because people forget fast. Everyone who experienced earlier exit scams knew it was only a matter of a time and which exchange it woud be next. Cryptopia was one of the candinates but i don't think it was even the strongest one.

 

At least these days we know that most regulated exchanges are safer then ever and insured in case of an accident or theft. 

Edited February 8, 2021 by rekter

[yonkii 3205]

When I joined in crypto I learned about the hacks of exchanges and how these could be orchestrated from inside and not being just simple hacks. Usually when the amount stolen is too much an exchange will find it very difficult to reimburse the users. I learned about Mtgox and how this exchange was hacked for hundreds of thousands of Bitcoin in 2014. It is not possible to pay the users back and have 200,000 bitcoins left for around 800,000 bitcoins stolen to pay back.

[huesca123 946]

On 1/27/2021 at 4:56 PM, selfmade said:

Hello friends, today i just went through a news which announced that; "Spanish Crypto Exchange 2gether Won't Reimburse All Stolen Funds From the 2020 Hack"

 

This kind of thing started with cryptopia, they got hacked and they did not pay all user until now and now this! guys this is getting serious and we should take it seriously.

for me this sets an example and i think from now on I would be careful to put too much money on an exchange and also I would make sure not to trade is small time exchanges sites, which have the risk of not paying after they get hacked.

 

So what example does it set for you?

Obviously, this gives all exchanges a very bad name. I have lived in Spain for over 30 yrs & this doesnt surprise me. Knowing how Spanish law works, Im not surprised that they wont pay anybody back. The corrupt politicians here get caught stealing & they dont have to return the money or go to jail. It wouldnt surprise me that in the end, they find out that it was the same owners of the exchange that stole the money. Its very possible that they left a security hole / back door in the platform & then  stole the money. The owners wont go to jail & nothing will happen to them. In a yr or 2, they just might do the same thing again, using a different name.

 

Nice Hash mining company & mining pool was hacked in 2017. Most or all the money was stolen. Nice Hash made a promise to pay everybody back. It took Nice Hash about 3 yrs, but they have now paid every body back who lost money. When a company does that, you know that they care about their customers.

 

You can read about here - https://www.overclock3d.net/news/misc_hardware/nicehash_has_successfully_paid_back_all_of_its_users_following_its_2017_hack/1#:~:text=Back in 2017%2C Nicehash%2C a,profits into a reimbursement program.

[Ayinlek 42]

On 1/27/2021 at 4:56 PM, selfmade said:

Hello friends, today i just went through a news which announced that; "Spanish Crypto Exchange 2gether Won't Reimburse All Stolen Funds From the 2020 Hack"

 

This kind of thing started with cryptopia, they got hacked and they did not pay all user until now and now this! guys this is getting serious and we should take it seriously.

for me this sets an example and i think from now on I would be careful to put too much money on an exchange and also I would make sure not to trade is small time exchanges sites, which have the risk of not paying after they get hacked.

 

So what example does it set for you?

That's very bad and crazy. I don't know why some exchange would that even when the hacking was their fault in the first place cos of their wack security. 

[Dorjoy12 8962]

On 1/27/2021 at 9:56 PM, selfmade said:

also I would make sure not to trade is small time exchanges sites, which have the risk of not paying after they get hacked.

This is not the exchange mistake but it is the trader mistake .. why they should keep huge funds on exchange site and why they use those exchange site where has no reposnsibity for user funds ,, do you know Kucoin exchange site ? it got hacked last year but later give back funds to it user

 

[selfmade 7]

1 hour ago, Dorjoy12 said:

This is not the exchange mistake but it is the trader mistake .. why they should keep huge funds on exchange site and why they use those exchange site where has no reposnsibity for user funds ,, do you know Kucoin exchange site ? it got hacked last year but later give back funds to it user

 

You are right it is a trader mistake but a trader should never worry about exchanges, so it is exchanges that should work to make sure traders trades comfortably without fear of risk of losing their funds.

[Dorjoy12 8962]

18 hours ago, selfmade said:

You are right it is a trader mistake but a trader should never worry about exchanges, so it is exchanges that should work to make sure traders trades comfortably without fear of risk of losing their funds.

Usually responsible trader do not keep their funds into any exchange for long time and  no matter trusted the exchange is! By the way, we all should be aware about this  because after exchange hack if we do not get our funds then it is really  bad  for our crypto journey ..This is why it would be better to use exchange as our daily need .