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Topic: Bitfinex discovered a security breach and halted trading! - page 2. (Read 2216 times)

legendary
Activity: 4424
Merit: 4794
just copas from their website

Today we discovered a security breach that requires us to halt all trading on Bitfinex, as well as halt all digital token deposits to and withdrawals from Bitfinex.

We are investigating the breach to determine what happened, but we know that some of our users have had their bitcoins stolen. We are undertaking a review to determine which users have been affected by the breach. While we conduct this initial investigation and secure our environment, bitfinex.com will be taken down and the maintenance page will be left up.

The theft is being reported to—and we are co-operating with—law enforcement.

As we account for individualized customer losses, we may need to settle open margin positions, associated financing, and/or collateral affected by the breach. Any settlements will be at the current market prices as of 18:00 UTC. We are taking this necessary accounting step to normalize account balances with the objective of resuming operations. We will look at various options to address customer losses later in the investigation. While we are halting all operations at this time, we can confirm that the breach was limited to bitcoin wallets; the other digital tokens traded on Bitfinex are unaffected.

We will post updates as and when appropriate on our status page (Bitfinex.statuspage.io) and on the maintenance page. We are deeply concerned about this issue and we are committing every resource to try to resolve it. We ask for the community’s patience as we unravel the causes and consequences of this breach.
Aug 2, 18:06 UTC

in bold area, is this same thing like in gox before??

if they are saying "some users" then i guess this was not a backdoor hack to grab the central pot (hotwallet/cold wallet) but a frontdoor hack by getting into users profiles and withdrawing the users balances..
(logically anyway, based on what is described)
legendary
Activity: 3808
Merit: 7912
...
 I think this should be in "press"

Yeah...No. Does this look like a notable press hit to you?


Some users' bitcoin has been stolen, and no there is no insurance for this.

"Some users" are out of luck, hopefully bitfinex' own stash is unaffected. Fucking hilarious.

 At least press of the day.
legendary
Activity: 2436
Merit: 1561
...
 I think this should be in "press"

Yeah...No. Does this look like a notable press hit to you?


Some users' bitcoin has been stolen, and no there is no insurance for this.

"Some users" are out of luck, hopefully bitfinex' own stash is unaffected. Fucking hilarious.
legendary
Activity: 1806
Merit: 1024
Could be a minor Mt.Gox event. I also think that Bitfinex could face insolvency. The drop in Bitcoin price prior to the event could mean that larger amounts of funds were withdrawn/converted...
It remains to be seen, if this disaster was an inside job or a real hack. In any case, the hot wallet / cold wallet concept at Bitfinex was insufficient to prevent it from happening.

Luckily the exchanges are less monopolized today than 2011-2012. So I think the overall damage to the bitcoin exchange landscape will remain limited. That of course will only be cold comfort for the users affected...

Hopefully, the other exchanges will learn from this and constantly improve their security precautions.

ya.ya.yo!
legendary
Activity: 3808
Merit: 7912
We still don't know what happened exactly, if it's a hack of users' accounts or a general security breach, only time will tell, also price of bitcoin was falling for days now we don't really know if it's related to bitfinex hack or not, I think most likey not.

 Oh, it's definitely Bitfinex related!  This is the same thing that happened at the end of June when Bitfinex halted trading.  Everybody gets timid and pulls back.  If the rumors are true, this one might take a little longer to recover from though.
hero member
Activity: 1106
Merit: 521
anyone know how much they lost?  cant believe this is still happening so many years after MtGox .... sad  Roll Eyes
YIz
hero member
Activity: 686
Merit: 502
The rumor I heard is that BitFinex was set up such that although all BTC was held with BitGo, which apparently has reasonable cold storage practices etc., the BitFinex<->BitGo settlement setup was such that anyone with BitFinex's (hot, online) key could withdraw large amounts of money from the BitGo accounts at any time. Exactly how much could've been stolen would depend on how much BitGo allowed BitFinex to "settle" at one time, but I don't know the details of how that worked.

Sort of reminiscent of having a "cold storage wallet" that will blindly follow the instructions of the live server... (Though maybe some limits were enforced.)

I'd suspect that BitFinex is insolvent, though I definitely don't know for sure. Still, I recommend withdrawing everything as soon as possible.

theymos, you made my day by replying here haha. you are so well known in the bitcoin community.

I hope the funds that Bitfinex will not affect the market too drastically, because the news themselves will do enough for it to drop lower.
administrator
Activity: 5222
Merit: 13032
The rumor I heard is that BitFinex was set up such that although all BTC was held with BitGo, which apparently has reasonable cold storage practices etc., the BitFinex<->BitGo settlement setup was such that anyone with BitFinex's (hot, online) key could withdraw large amounts of money from the BitGo accounts at any time. Exactly how much could've been stolen would depend on how much BitGo allowed BitFinex to "settle" at one time, but I don't know the details of how that worked.

Sort of reminiscent of having a "cold storage wallet" that will blindly follow the instructions of the live server... (Though maybe some limits were enforced.)

I'd suspect that BitFinex is insolvent, though I definitely don't know for sure. Still, I recommend withdrawing everything as soon as possible.
full member
Activity: 196
Merit: 100
We still don't know what happened exactly, if it's a hack of users' accounts or a general security breach, only time will tell, also price of bitcoin was falling for days now we don't really know if it's related to bitfinex hack or not, I think most likey not.
legendary
Activity: 2492
Merit: 1018
Probably the reason why bitcoin just went down 10% to about 560$.
I did not see this one coming!!!

Maybe. It could be the reason to the price drop and so its not ETC after all?
I guess the drop will continue still up to a week or so and ETC's price will continue to grow even more. Horray to all adopters.
newbie
Activity: 34
Merit: 0
What an amazing coincidence this had with breaking out south of the consolidation 2 days prior...
legendary
Activity: 1092
Merit: 1001
...
We are investigating the breach to determine what happened, but we know that some of our users have had their bitcoins stolen. We are undertaking a review to determine which users have been affected by the breach. While we conduct this initial investigation and secure our environment, bitfinex.com will be taken down and the maintenance page will be left up.
...
in bold area, is this same thing like in gox before??

No. Mt.Gox attack was related to Mt. Gox's hotwallet being emptied over many
weeks/months by "transaction malleability" (Or so Karpeles has claimed). It was not
related to an individual user's wallet/address, but site's wallet.

Currently, Bitfinex is saying "some users are reporting" this, so I assume these people
were all hacked (bad pws) or downloaded keyloggers and the attacker decided to grab
everyone's btc within the exchange, at the same time.

The Bitfinex attack is reported to have been conducted today.
So previous BTC market price declines are not related (in theory).

This is my opinion based on current info, which is no real info yet, lol.
hero member
Activity: 742
Merit: 500
Hire me for your campaign management.
Probably the reason why bitcoin just went down 10% to about 560$.
I did not see this one coming!!!

I also think like that, I thin bitfinex is becoming a bigger problem for the bitcoin users, if they are unable to controll and secure their exchange then they should have to leave the way, there are a lot of other exchanges which are working better like bitstamp etc,
full member
Activity: 248
Merit: 100
just copas from their website

Today we discovered a security breach that requires us to halt all trading on Bitfinex, as well as halt all digital token deposits to and withdrawals from Bitfinex.

We are investigating the breach to determine what happened, but we know that some of our users have had their bitcoins stolen. We are undertaking a review to determine which users have been affected by the breach. While we conduct this initial investigation and secure our environment, bitfinex.com will be taken down and the maintenance page will be left up.

The theft is being reported to—and we are co-operating with—law enforcement.

As we account for individualized customer losses, we may need to settle open margin positions, associated financing, and/or collateral affected by the breach. Any settlements will be at the current market prices as of 18:00 UTC. We are taking this necessary accounting step to normalize account balances with the objective of resuming operations. We will look at various options to address customer losses later in the investigation. While we are halting all operations at this time, we can confirm that the breach was limited to bitcoin wallets; the other digital tokens traded on Bitfinex are unaffected.

We will post updates as and when appropriate on our status page (Bitfinex.statuspage.io) and on the maintenance page. We are deeply concerned about this issue and we are committing every resource to try to resolve it. We ask for the community’s patience as we unravel the causes and consequences of this breach.
Aug 2, 18:06 UTC

in bold area, is this same thing like in gox before??
legendary
Activity: 3808
Merit: 7912
Well, everyone is vulnerable and this can happen, security is always on test. They wouldn't be the first to.have such problem.  But strange that if this happened this wasn't a bigger news.

 It JUST happened.  The only reason it isn't news is because OP didn't post it in the "Press" section.  I guess it will be big news soon enough but that depends entirely on how much, if any they lost.
sr. member
Activity: 254
Merit: 1258
Never keep funds on an exchange, you exchange them and then remove them.
hero member
Activity: 910
Merit: 501
Probably the reason why bitcoin just went down 10% to about 560$.
I did not see this one coming!!!
legendary
Activity: 2912
Merit: 1068
WOLF.BET - Provably Fair Crypto Casino
Well, everyone is vulnerable and this can happen, security is always on test. They wouldn't be the first to.have such problem.  But strange that if this happened this wasn't a bigger news.
legendary
Activity: 3808
Merit: 7912
Bitfinex just announced they discovered a security breach in their website and halted all Bitcoin deposits and withdrawals because bitcoins were stolen.

https://steemit.com/bitcoin/@soapsadu/bitfinex-discovered-a-security-breach-and-halted-trading

What do you think?

 I think this should be in "press"
YIz
hero member
Activity: 686
Merit: 502
Bitfinex just announced they discovered a security breach in their website and halted all Bitcoin deposits and withdrawals because bitcoins were stolen.

https://steemit.com/bitcoin/@soapsadu/bitfinex-discovered-a-security-breach-and-halted-trading

What do you think?
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