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Thread: 120,000 BTC stolen from bitfinex exchange

  1. #1

    120,000 BTC stolen from bitfinex exchange

    There's something fishy in they were supposedly a multi sig setup to help prevent this.

    60 million bucks... wow. The sharp drop and correction was interesting to watch.

    http://themerkle.com/major-bitcoin-e...of-120000-btc/
    “…let us teach them that all who draw breath are of equal worth, and that those who seek to press heel upon the throat of liberty, will fall to the cry of FREEDOM!!!” – Spartacus, War of the Damned

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  3. #2
    Those are gone forever. I will never use finex again

  4. #3
    Quote Originally Posted by kfarnan View Post
    Those are gone forever. I will never use finex again
    it won't be a choice you have to make. They are certainly out of business after today.
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  5. #4
    The biggest problem with these coins is this kind of theft. Probably an inside job. Doesn't take long for someone to get tempted by that kind of dough. At least with the Ether coin they were able to block the theft through some code but purists don't like the fact that they were able to modify the code so I guess there is no "perfect" alt coin.
    Last edited by ChristianAnarchist; 08-03-2016 at 03:13 AM.
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  6. #5
    Quote Originally Posted by ChristianAnarchist View Post
    The biggest problem with these coins is this kind of theft. Probably an inside job. Doesn't take long for someone to get tempted by that kind of dough. At least with the Ether coin they were able to block the theft through some code but purists don't like the fact that they were able to modify the code so I guess there is no "perfect" alt coin.
    The whole point of Ether was to have immutable contracts. What happened was someone exploited a loophole in a very big contract, and the network decided that instead of teaching investors to thoroughly vet their contracts before pouring money into them, or to have contracts build in a form of governance to account for problems like this, this contract was just too "big to fail" so the developers decided to go back on Ether's premise. Now with ETH and ETC co-existing it's a disaster. The DAO attacker will still likely be able to cash out at least a portion of the funds and it leaves everyone wondering if it was all worth it...
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  7. #6
    A hacker got a chunk, if not all, of the ETC from the ETH that the DAO held.
    “…let us teach them that all who draw breath are of equal worth, and that those who seek to press heel upon the throat of liberty, will fall to the cry of FREEDOM!!!” – Spartacus, War of the Damned

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  8. #7
    I don't see anyway around implementing a relatively expensive solution.

    1. We need a device like the trezor, that the user holds and every single time a user transfers funds on the exchange(or hacker attempts to) the user must connect the trezor like device to an internet enabled computer and verify the movement.

    2. All accounts on the exchange also need the same type of "trezor" device with the second key. Not one for the whole exchange but for every single user. That device would do the secondary signing.

    3. All exchanges need to give the user fine control over their withdrawal parameters. As in I'd be perfectly fine, exchange withdrawals on my account only being allowed on a Monday between 7pm-8pm Central time. Max amount per trade limit, Max amount converted to another type in 24 hour period,As defined by me. Also should be able to set a defined withdrawal address, etc.... Changing any of those parameters would lock your account for 72 hours mandatory minimum, and would be only unlocked after the options you selected are satisfied, like a certified letter being sent to your address of record with a code to unlock, or verification via a phone call, or whatever else you can think of.

    The devices probably would cost a 100 per account.... but then at least you'd be at fault for losses every time.

  9. #8
    There has been some work on peer to peer exchanges however I don't see how someone requiring an auth to transfer btc would work for a place like bitfinex which allowed shorts and longs. It's a pay up front sort of system. If it required a person to go through that hassle to pay the exchange after they lost money it just wouldn't work.


    This is the sort of thing that made ethereum go through the roof. Being able to write a contract that would allow for an unalterable outcome is a very neat way to avoid the problems of exchange hacks. The exchange would be no more than a listing service of contracts with other users directly. (Unless the community decides for a fork)
    I don't know of an eth exchange that does this but I'd be shocked if someone wasn't already working on it.
    “…let us teach them that all who draw breath are of equal worth, and that those who seek to press heel upon the throat of liberty, will fall to the cry of FREEDOM!!!” – Spartacus, War of the Damned

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  11. #9
    Exchanges may use Ethereum or Lisk

    https://cointelegraph.com/news/excha...isk-and-others
    “…let us teach them that all who draw breath are of equal worth, and that those who seek to press heel upon the throat of liberty, will fall to the cry of FREEDOM!!!” – Spartacus, War of the Damned

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  12. #10
    Tangible assets FTW. Wealth and property are worth fighting for.

    The sharp drop and correction was interesting to watch.
    If by interesting you mean sad to see. Some hacker raped a whole bunch of people and there will likely be no consequences.

  13. #11
    Quote Originally Posted by fr33 View Post
    Tangible assets FTW. Wealth and property are worth fighting for.

    If by interesting you mean sad to see. Some hacker raped a whole bunch of people and there will likely be no consequences.
    It's no different than a bank robbery, banks are just insured for the loss. The vast majority of my bitcoins are on a Trezor, good luck stealing those over the internet.


    Seriously, the only method, that can be "super" secure is a hardware wallet. Anyone, trusting anything other than a like solution is infinitely more hackable.

    The hardware wallet essentially does all the security functions outside the host computer, so even if the host computer is compromised it doesn't matter. So, as long as your hardware wallet was built correctly, you are good.

  14. #12
    Quote Originally Posted by RonPaulIsGreat View Post
    It's no different than a bank robbery, banks are just insured for the loss.
    Taking into account the per capita bitcoin hack vs bank robbery, banks and paper money come out on top.

  15. #13
    Quote Originally Posted by fr33 View Post
    Taking into account the per capita bitcoin hack vs bank robbery, banks and paper money come out on top.
    That's disingenuous.

    Bitcoin only has like a dozen or so "Big" exchanges, that's because the market cap is so small. If the market cap were 10 trillion, there would be 100's or 1000's of these type of exchanges and a hack of one of them would likely result in similar "Dollar" losses, but less as a percentage of total value. As right now, the only way to generate enough profits to be a bitcoin exchange and survive means you have to account for a large percentage of total activity.
    Last edited by RonPaulIsGreat; 08-06-2016 at 11:14 AM.

  16. #14
    Quote Originally Posted by fr33 View Post
    Taking into account the per capita bitcoin hack vs bank robbery, banks and paper money come out on top.
    The local bank has been robbed 2 times in the past 10 years, always for an "undisclosed amount". I think both times they got away with it since it's a rural area.
    For all I know bank robberies may actually add up to 70 million a year worldwide. Not that the figure would ever be released.

    I'm sure credit card fraud is way higher than that
    “…let us teach them that all who draw breath are of equal worth, and that those who seek to press heel upon the throat of liberty, will fall to the cry of FREEDOM!!!” – Spartacus, War of the Damned

    BTC: 1AFbCLYU3G1dkbsSJnk3spWeEwpqYVC2Pq



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