Education

What to do if your coins get stolen from the exchange

The most popular way for the vast majority of people involved in cryptocurrency to obtain coins is through the exchanges. While exchanges are incredibly convenient, they also come with some downsides, the principal one being that they are targets for hackers. Exchanges like Mt. Gox and BTC-e revealed just how insecure exchange platforms could be. If your coins ever got stolen from an exchange, make sure you follow these steps.

  1. Find the Transaction IDs

Try your best to track down where your funds went and where they may be. Platforms like blockchain.info and etherscan.io let you track and monitor blockchain transactions

  1. Contact the Exchange

–As obvious as this may seemб it’s essential to inform the exchange as soon as possible. When communicating with the exchange describe everything that happened and try to track your logins and hand over suspect transaction IDs to them. It’s in the exchanges best interests to solve the problem so the sooner you reach out to them, the better.

  1. Go Public

Social Media is your best bet here. Use mediums such as Reddit, Twitter, and Telegram to broadcast what happened. You should also announce what happened via specialist forums as other users may have had a similar experience.

  1. Keep in Contact

The top tier exchanges are very busy as they process enormous amounts of transactions daily. If they take your losses as insignificant, there is no assurance that staff members will work as quickly as possible find a solution to the problem.

  1. Improve your Security

It may seem unnecessary to enhance your security as you have already been breached, but you should try to improve it immediately. Endeavor to set up two-factor authentication and modify the passwords you use on various platforms and devices. If you use the same passwords on other exchange platforms, then there is a chance they will also be jeopardized. Even if you were the victim of a simple brute force attack, it’s essential to use more complex passwords.

Conclusions

At the moment there isn’t a consensus on what should happen to stolen coins. The documented history of  crime should help you to recover coins, especially if exchange’s security vulnerabilities are among primary reasons of coin theft. However, cryptocurrencies are particularly hard to recover with most of the authorities only focusing on the most significant examples of cryptocurrency theft and usually stay oblivious to minor instances of this crime.

Bitcoin transactions are recorded on the public ledger so, in theory, whoever stole the coins should have difficulty trying to use them. However, privacy coins like Monero, ZCash, and PIVX also boast about their inability to be traced so if you deal with these coins, there is a lower possibility that they will be recovered.

While being a victim of theft is always emotionally frustrating, the essential thing is to stay public with your issue and also to be resolved to try and achieve a result. The blockchain technology is still in its early stages, and every problem only helps to strengthen the technology and expand the knowledge base of all the people connected.