What to do if your crypto is lost or stolen

Megan Knab
Oct 1, 2018 · 2 min read
Image for post
Image for post
The Mt. Gox hack in 2014 is one of the most infamous hacks of a cryptocurrency exchange. Image from Bitcoin Exchange Guide.

It’s not every day when a business loses $66 million dollars into thin air. Yet that’s exactly what happened to Polkadot, a company focused inter-chain blockchain protocols in 2017. [Note, that cash figure is based on the price as of writing of this article, it would have been more when the hack took place]. Polkadot is sadly not alone in this. Many companies as well as individuals have suffered losses from hackers or the mistaken press of a button. While there are examples of similar situations in the traditional finance world, these are extreme aberrations.

Companies that hold cryptocurrencies should know that the possibility of mistakenly transferring a cryptocurrency, or worse of having an exchange or wallet account hacked, is the sometimes the cost of doing business.

Action Steps

There are unfortunately very few protections for users who lose their assets or are victims of hackers. If your assets are lost in a hack by an exchange, the best thing you can do is file a claim with the exchange and be vigilant about following up on it. Many exchanges have restored lost funds out of their own pocket, yet sadly many have not. Choosing an exchange that you feel comfortable with you data and assets in is an important choice to make. If recompense from an exchange is not an option then here are a few immediate steps to take:

  1. Thoroughly document the events of the occurrence.

If you have questions about this article, or your company is looking for a cryptocurrency accounting solution, please reach out to us here.

VeriLedger

Decrypting crypto accounting.

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