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Short answer: if your exchange reports a hack or pauses withdrawals, do not send funds anywhere, do not click links in messages about it, and rely only on the exchange’s official status channels. The Federal Trade Commission warns that crypto is not backed or insured by a government, so if funds are lost, stolen or compromised, no one is obligated to help you recover them. This is general information, not financial advice.
Why this matters right now
On Oct. 30, Binance reported a security incident and paused deposits and withdrawals, according to a CoinGabbar report. The scale is still being sorted out, and Binance has said user funds are safe. Whatever the final numbers, the situation shows how little a customer can do once money is on an exchange, and how quickly scammers move into the gap.
What crypto does and does not protect
| Question | What the FTC says |
|---|---|
| Is it backed or insured by a government? | No; if funds are lost, stolen or compromised, no one is obligated to help recover them |
| Do payments have card-style protections? | Generally no, and they usually cannot be reversed |
| Is it anonymous? | Not as much as often assumed; transactions are typically on a public blockchain |
Source: FTC, What To Know About Cryptocurrency and Scams. Date checked: Oct. 30, 2026.
Six steps to take after a crypto exchange hack
1. Stop and verify. Check the exchange’s own website or official social accounts for status updates. Type the address yourself rather than following a link.
2. Ignore unsolicited messages. The FTC advises against clicking links, answering calls or calling back numbers from unexpected messages or pop-ups, even if they seem to come from a company you know. Hack news is a common hook for phishing.
3. Never pay to “recover” funds. The FTC says anyone demanding payment in crypto, especially in advance, to “protect” your money is always a scam, and impersonators often claim fraud or frozen accounts.
4. Lock down your account. Use a strong, unique password and phishing-resistant sign-in. Our guide to setting up passkeys walks through it, and the advice in how to spot a scam text applies to messages about your exchange.
5. Keep records. Save screenshots of balances, transaction IDs and any messages from the exchange.
6. Report fraud if you lose money. The FTC lists ReportFraud.ftc.gov, the CFTC at CFTC.gov/complaint, the SEC at sec.gov/tcr, and the FBI’s IC3 at ic3.gov, plus the exchange you used. For extortion or blackmail, contact the FBI. If a stranger has impersonated a government agency, see our guide to government impersonation scams.
Common mistakes
The most common are rushing to move coins to a new wallet because of a message, paying a “recovery” service, and sharing a seed phrase or login code with anyone claiming to help. None of these is something a legitimate exchange or agency asks for.
Editor’s take
Do this first: treat every message about a crypto exchange hack as suspect until you have confirmed it on the exchange’s own site. Staying calm and slow costs nothing; acting on a convincing but fake notice can cost everything, and the FTC is clear that there is no insurance behind the balance.
