• Mon. Dec 4th, 2023

Exmo Will Not Be Able to Recover a Chunk of the Hacked Funds

Dec 26, 2020
Exmo Will Not Be Able to Recover a Chunk of the Hacked Funds

Sad news has just been dropped by one of the cryptocurrency exchanges ‘Exmo’ which fell victim to a hack right at the beginning of this week. It has been reported that the Exmo exchange will not be able to recover the funds that were stolen from it as a result of a hack.

It has also been revealed why the Exmo exchange will not be able to recover the larger amount of money that was hacked. The main reason is that the hackers who carried out the hack have already withdrawn the larger amount that is worth millions.

The exchange through which the hackers carried out the withdrawal was Poloniex. The Exmo exchange confirmed that the hack was carried out by the hackers on its platform on December 21, 2020. In order to get a hold of the situation, the exchange froze all its withdrawal activities.

Since then the exchange has been trying its best and utilizing all the resources to put a stop to the movement of the stolen funds. The United Kingdom-based cryptocurrency exchange ‘Exmo’ has confirmed that it has lost a huge amount of money to the hack.

The funds that the Exmo exchange lost as a result of the hack are $10.5 million. The hackers managed to steal these funds, not in one crypto-asset but several cryptocurrency assets. It confirmed that the major crypto-assets that the hackers stole include Zcash (ZEC), Ripple (XRP), Bitcoin Cash (BCH), Bitcoin (BTC), Tether (USDT), and Ether (ETH).

The Exmo exchange executives have confirmed that they will not be able to recover around $4 million. It is because the hackers have already managed to withdraw these funds and they used the Poloniex exchange to carry out the withdrawal.

One of the spokespeople from the Compliance Department of Poloniex also released a statement about the incident. He confirmed that as soon as their team received a notification from the Exmo exchange, they froze the two accounts that were used for the hack.

He stated that as the notification from Exmo came after several hours, the assets had already been withdrawn by the hackers.

Ever since the incident, the Exmo exchange is constantly digging into the entire hack. It has confirmed that the hackers managed to withdraw the $4 million funds in the form of XRP and ZEC. The exchange confirmed that $1 million were withdrawn in Ripple (XRP) and $2.8 million were withdrawn in Zcash (ZEC).

The Exmo exchange blamed the Poloniex exchange for not being adherent with the AML regulations. It claimed that if the Poloniex exchange had been adherent to the AML regulations, it would not have allowed such an amount to be released without proper investigation in the first place.

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