The Exmo hacked cryptocurrency exchange cannot recover a large amount of stolen money as hackers have withdrawn millions of dollars in cryptocurrencies through the Poloniex cryptocurrency exchange.
On December 21, Exmo announced a major hack that resulted in the platform freezing all withdrawals from the exchange. The British company estimates that the total losses in various digital assets such as Bitcoin (BTC), Ether (ETH), Tether (USDT), XRP, Bitcoin Cash (BCH) and Zcash (ZEC) will be more than $ 10.5 million. ).
Exmo executives say $ 4 million in total stolen assets cannot be recovered due to criminals withdrawing money through Poloniex. A spokesperson for Poloniex’s compliance division told Cointelegraph:
“After receiving the information from the Exmo team, we quickly identified two accounts and froze them. Unfortunately, all affected assets were withdrawn a few hours before Exmo contacted us.”
According to Exmo’s accounts, Poloniex allowed hackers to withdraw $ 1 million in XRP and $ 2.8 million in ZEC. Exmo management said the loss was due to the lack of anti-money laundering measures Poloniex uses. When Poloniex allegedly moved its headquarters from the US to the Seychelles, Exmo filed a report on the case with the Seychelles Central Bank.
Poloniex then denied Exmo’s claims against Cointelegraph, saying the exchange adheres to a strict anti-money laundering policy and a Know Your Customer policy:
With regard to its “Know Your Customer” and “Anti-Money Laundering” guidelines, Poloniex follows strict procedures to monitor, detect, prevent and report money laundering and financial crimes. We use industry-leading software from Jumio, EVS, and Elliptic to perform identification, verification, OFAC, sanction and transaction tracking. The vulnerable accounts were created more than 4 weeks ago and were fully verified using the above programs and criteria. ”
As previously reported, the platform lost around 5% of all assets as a result of the Exmo security accident. The exchange said the breach only affected hot stock exchange portfolios and promised to cover up users’ losses. As part of the investigation into the return of stolen funds, Exmo introduced hacker-related portfolios and announced partnerships with major global exchanges Kraken and Yobit, as well as crypto analysis firms Chainalysis and CipherTrace.
In a security update on December 23, Exmo announced that the Oslo Bowers plan to resume withdrawals from major cryptocurrencies between December 25 and 26.