How hard is it to lose money on the exchange and how to recover bitcoin digital assets?

In the past two days, the price of the currency has risen sharply, and the total market value of global digital assets has exceeded $176.9 billion (source: CoinMarketCap). The recovery of the market has brought popularity and attracted attackers.

Three days of three exchanges stolen

On March 24th, DragonEx, a digital asset trading platform called “Dragon Net” by the users of the currency, issued a system upgrade announcement, suspending all transactions and charging of money services; on March 25th, “upgrade” was delayed, and Longwang officially announced Theft of assets. One day later, Longwang disclosed the hacker's wallet address and involved more than 20 digital assets.

On the day of the hacker attack on Dragon.com, the exchange was also blocked by Etbox. Three days later, Etbox issued a statement saying that the attack caused the platform to lose assets of $132,000.

At 0:08 on March 26, the crisis spread to the BiKi exchange. An investor found that his account password was tampered with, and around 5 am, 28 Biki users encountered the same problem. At 3 pm on the same day, Biki said in the announcement that the number of accounts involved in tampering with passwords was 37, and the number of accounts involved in asset transfer was 18, and the amount of losses amounted to $123,300.

The most serious loss of Longwang said that some funds have been recovered and alarmed by the administrative judicial organs in Estonia, Thailand, Singapore, Hong Kong, etc. to assist the police in conducting investigations.

“The chances of recovering stolen assets are very low. Although Longwang has always said that it has contacted the police in many countries and regions, from the experience of the exchange’s past stolen, it may be impossible to recover the losses.” One user This is indicated.

Longwang also issued a statement saying that the platform will make greater efforts to recover more assets. During the period, Gate, OKEx, Firecoin, Coin, Bittrex and other exchanges have given support. Although some assets have been successfully frozen, Longwang admits that a considerable part of the assets are still being transferred quickly. It can be seen that the difficulty of tracking and recovering is self-evident.

What did the loser miss?

When it comes to the recovery of stolen money, it has to be said that the infamous "Moutougou incident" in history, in the Mentougou incident, hackers have stolen nearly 750,000 bitcoins and 100,000 bitcoins on the exchange. The number of stolen Bitcoins accounted for about 7% of the total global Bitcoin at the time. At the time of the incident, the BTC average price was around $400, which was worth about $473 million at the time, and is now around $5,000. In the end, the Mt.Gox exchange filed for bankruptcy in February 2014.

Five years later……

On March 20, 2019, the Tokyo Metropolitan Court of Japan issued the "Mt.Gox Incident" report. The creditors applied for compensation of 1,167,841.7 bitcoins, the court found 938,476.2; applied for compensation of 1,363,351.4 bits of cash, the court found 938,476.2; the compensation for the application was 1,706.66 million yen, and the court found 10.2 billion yen. Mt.Gox has fallen into a serious insolvency by paying the amount determined by the court. For the victims of the Mentougou incident, which has been suffering for five years, it seems that there will be an ending.

Although the judgment of the Tokyo District Court has been announced, it seems that the user has missed too much in the past five years, missed the bitcoin of 100,000 in the bull market, and missed the best time in life.

Asset protection, prevent problems before they happen

Encrypted assets are difficult to find, and it is difficult to get to the sky. Some people are willing to give the city government 7.4 million pounds, only to obtain the permission to dig garbage dumps, to retrieve the computer hard disk storage bitcoin information; some people have found a hypnotist, hope to hypnotize the memories through hypnosis; others simply hire hackers Crack your own hardware wallet… The event mentioned here does not mean being stolen or robbed, but that the owner of Bitcoin lost the private key for various reasons.

The private keys that you have lost are hard to recover, not to mention the private keys stolen by hackers who have been spoofed in layers , tracking the operators behind the scenes in the world of encrypted assets, bringing them to justice and returning assets. Difficult to add. For some hackers, it is very common to wait until the money loser has completely desperate after three or five years to realize the assets in the address.

For the protection of personal assets, the library god CTO Ye Fei has repeatedly stated that the private key should not be stored online, and the private key should be kept in its own hands. First of all, to buy a regular brand of hardware wallet, and second, the most important thing is to do a backup of the mnemonic, can not be saved on the computer or cloud disk. Finally, the hardware wallet itself needs to be kept safe.

Ye Fei believes that it is “king” to refuse to lose money for the exchange, but it can be done very little. In reality, hackers are also transforming their attack strategies from the private key of the attacking asset to the database of the attacking party. The security prevention and control of the exchange database is relatively weak. The exchange should strengthen the risk control in the application for the withdrawal of coins and exchanges to ensure the safety of assets. The exchange must be firmly controlled in the management, recharge and withdrawal of asset storage and private keys. At present, it is impossible to achieve technical perfection. It is necessary to use some institutional norms to reduce the risk of transactions.