EXMO Hackers Withdraw $4 Million Stolen Funds through Poloniex Exchange

Exmo, an UK-based cryptocurrency exchange, has suffered a suspicious withdrawal activity on December 21st, 2020. Though the exchange has taken some measures to trace the stolen funds, it failed to recover a large portion of the funds as attackers cashed out through the Poloniex exchange.

According to Exmo, about $4 million of the stolen funds have been cashed out through the Poloniex exchange, where $1 million was withdrawn in XRP and $2.8 million in ZEC.

“After we received the information from the Exmo team, we quickly identified and froze the two accounts. Unfortunately, all affected assets had been withdrawn hours before we were even contacted by Exmo,” a spokesperson at Poloniex Compliance Department said.

Exmo has accused Poloniex of weak Anti-Money Laundering measures, reporting the latter to the Seychelles Central Bank.

“Regarding our KYC and AML policies, Poloniex adheres to stringent procedures to monitor, detect, prevent and report possible money laundering and financial crimes,” Poloniex spokesperson.

The hacked exchange says that deposits and withdrawals for fiat currencies, BTC and BCH have already been enabled on the exchange, according to its latest update.

“Due to the increased security measures, delays in cryptocurrency withdrawal operations may occur. Short-term shutdowns of overloaded withdrawal directions are possible,”the company said.