The cryptocurrency exchange has been hacked Exmo is unable to recover a large amount of stolen funds as hackers have withdrawn multi-million dollar cryptocurrencies through the Poloniex crypto exchange.
On December 21st, Exmo announced a major hack that caused the platform to freeze all withdrawals from the exchange.. The UK-based company now appreciates this The total losses amount to more than $ 10.5 million for various digital assets such as Bitcoin (BTC), Ether (ETH), Tether (USDT), XRP, Bitcoin Cash (BCH) and Zcash (ZEC)..
Exmo managers claim that Up to $ 4 million in completely stolen property cannot be reclaimed as criminals are withdrawing money through Poloniex. A spokesman for Poloniex’s compliance department told Cointelegraph:
“After we received the information from the Exmo team, we quickly identified the two accounts and frozen them. Unfortunately, all affected assets were removed hours before Exmo was contacted. “
According to Exmo’s calculations, Poloniex allowed hackers to withdraw $ 1 million from XRP and $ 2.8 million from ZEC. Exmo managers claimed that The reason for the loss was the lack of anti-money laundering measures by Poloniex. When Poloniex allegedly moved its headquarters from the US to the Seychelles, Exmo submitted a report on the matter to the Central Bank of Seychelles.
Later, Poloniex denied Exmo’s allegations against Cointelegraphand claims that the exchange has a strong anti-money laundering and awareness policy for your customers:
“In relation to our KYC and AML policies, Poloniex follows strict procedures to monitor, detect, prevent and report potential money laundering and financial crimes. We use industry leading software from Jumio, EVS and Elliptic to perform identification, verification, OFAC, penalties and transaction tracking. The affected accounts were created more than 4 weeks ago and were fully verified using the above software and standards. “
As previously reported, As a result of the Exmo security incident, the platform lost around 5% of its total assets. The exchange said that The hack only affected the exchange’s online wallets and promised to cover user losses. As part of an investigation to recover the stolen funds, Exmo provided wallets associated with hackers and hackers display Cooperation with the major global exchanges in Kraken and Yobit as well as with the cryptanalysis companies Chainalysis and CipherTrace.
In a security incident update on December 23rd Exmo said the exchange is expected to start withdrawing major cryptocurrencies again between December 25th and 26th..