An uptick in digital heists of virtual currencies has left many crypto investors wondering if they have any options for tracing illicit Bitcoin transactions and recovering their stolen funds. The short answer is that ‘it’s possible, but difficult.’ The long answer is that ongoing developments in the regulatory landscape surrounding cryptocurrency may offer victims more recourse going forward.
One of the most recent crypto thefts took place in mid-July when a hacker lifted millions in Ether during trading platform Coindash’s initial coin offering (ICO). In a brazenly unsophisticated breach, the attacker simply hacked the platform’s website and switched out Coindash’s wallet address with another one under the hacker’s control – channeling investor’s funds to the thief. Although the heist was spotted in a matter of minutes, it was not quick enough to prevent the loss of $7.4 million of Ether.
Coindash is not the only exchange to be compromised. There