In the latter part of 2019, the South Korean crypto exchange UPbit was hacked and 342,000ETH were stolen, which at the time were worth about $50 million. Some of those funds had made it to one of the largest exchanges: Binance.
The transfer was made to try to get away with the theft and withdraw/convert the funds. However, as soon as Binance found out, the funds that reached their exchange were frozen. They are have since done their effort to freeze any funds from this hack should they reach their exchange.
A Twitter bot account which monitors blockchain activity and reports it: WhaleAlert, has picked up on 137ETHs being moved form the UPbit hack to Binance once again. The alert was immediately seen by Binance’s CEO, Changpeng Zhao (CZ), and the issue was attended to.
— CZ Binance 🔶🔶🔶 (@cz_binance) May 13, 2020
The funds were immediately frozen and both UPbit and the authorities were to be contacted to hand off the funds as stated by CZ.
The cryptocurrency ecosystem gets a lot of heat in regards to illicit activities, however moments like these prove the complete opposite. Had the theft been done with fiat currencies, especially cash, the probabilities of fully getting away with it would be drastically higher than with cryptocurrencies.
Public blockchains such as Bitcoin and Ethereum are fully transparent and anyone can access this information. This has resulted in a sort of “community police” which is putting decentralized effort to stop all hackers in their tracks and make their lives and illicit operations much harder to perform.
Image ℅ Binance