What Happens After a Crypto Hack? How Project Teams and Exchanges Respond
- Many crypto hacks start with a stolen key or a compromised wallet, so the first job is stopping the thief from cashing out.
- When a project is hacked, its team is the first responder, and exchanges assist by acting quickly on the information the team provides.
- Pausing deposits is the primary step, since it keeps stolen tokens from entering an exchange to be sold; pausing withdrawals is a secondary step that keeps compromised funds in place and easier to trace.
- At the Fogo team's request, MEXC suspended FOGO deposits and withdrawals on August 29, 2026, restricted the accounts linked to the addresses the team submitted, and followed up with a stolen asset report and law enforcement request.
- Fogo has recovered 237 million of the 400 million stolen tokens and removed them from supply, as of its September 2 update.
- Fogo's co-founder publicly credited MEXC's responsiveness and professionalism despite little prior experience with the exchange.
The Fogo Hack Explained: What Happened and How MEXC Assisted
- August 29, 1:13 AM: The Foundation discloses the breach and says exchanges have been alerted.
- August 29: At the project team's request, MEXC suspends FOGO deposits and withdrawals, restricts the accounts linked to the addresses the team submitted, and begins the stolen asset report and law enforcement request process.
- August 29, 4:29 PM: Fogo announces its mainnet has been halted so validators can upgrade it to restrict the flagged addresses.
- September 4: MEXC resumes FOGO deposits and withdrawals at 10:00 AM.
Crypto Exchange Hack vs. Project Hack: Who Responds First, and How Exchanges Assist
Why Exchanges Pause Deposits After a Crypto Hack, and Sometimes Withdrawals
Our comparison of crypto exchange protection funds and audits shows what each platform's safeguards cover.
What Happens to Stolen Funds After a Hack
How Exchanges Usually Assist After a Crypto Hack
Hacks have been frequent this year, and they rarely land during business hours.
Exchanges do not run the investigation; the project team does.
What an exchange can do is act quickly on what the team sends, and that assistance usually follows the same order.
- Pause deposits for the token, and withdrawals too if the team asks, while the team investigates.
- Restrict the accounts linked to the addresses the team submits, so any stolen funds that arrived cannot be traded out.
- File a stolen asset report for funds that reached the exchange, and work through the law enforcement request that follows.
- Share what the pause and the restrictions show, so the team can trace where the rest of the tokens went.
- Reopen when the project team confirms it is safe.
None of this needs a long relationship with the project.
It needs a clear request, the addresses involved, and an exchange team that picks up quickly.
For how the major platforms compare on security, fees and listings, see our 2026 ranking of the best crypto exchanges.
How MEXC Assisted the Fogo Team
Our guide to MEXC's security and asset protection measures covers how user assets are protected beyond incident response.
What This Means for Traders and Project Teams
Our comparison of crypto exchanges with proof of reserves shows which platforms publish evidence that customer holdings are fully backed.
If an incident makes you rethink where you trade, our full guide to crypto exchange alternatives compares the main platforms.
FAQ
Conclusion
For a wider assessment of the platform's fees, listings and security, read our MEXC review 2026.
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- How to Transfer Crypto Between Exchanges: The Complete Guide to Switching Crypto Exchanges Without Selling a Coin
- MEXC Restricted Countries: Complete List of Prohibited & Limited Regions
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