With the recent Bitfinex hack, it came to light that all of the exchange’s bitcoins were stored in a 2-of-3 multisig hot wallet. With a full automation though, multisig loses its security advantage. It was sufficient to compromise one signature in order to empty the wallets. A good portfolio analysis would determine an appropriate percentage of the liquidity to be withdrawn to the safety of a Trezor (also capable of multisig). However, for the best security, Trezor allows no automation. Instead, it requires the responsible fund manager to verify each transfer between cold and hot wallet with their own eyes and a physical button press — something a hacker could never do.
https://news.bitcoin.com/trezor-prevented-70m-bitfinex-exchange/
Topic: [2016-08-10] A $99 Trezor Could Have Prevented the $70M Bitfinex Theft (Read 208 times)
August 10, 2016, 11:25:43 PM
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