Topic: [Bitfinex Hacked] So , learned the lesson ? - page 11. (Read 10601 times)

It's called 3rd party audit.

the main problem we will always keep funds in exchanges, that for we can made trade any time when we want to buy or sell bitcoin. so what we must learn cause if we always made a deposit/withdraw it's need a time to get a confirmation so you will lose a chance to make a profit. in fact this is a risk we must acceptance.

Dang this sucks.

Well that sure is going to be tricky. As a service provider, you'd have to prove that the keys to the funds are not stored on any online system, however you can't prove that something is not happening.

Probably not even Bitfinex does up to this point. Assuming that they were indeed hacked and the whole incident isn't a complete fabrication...

Given that BitGo (multisig system Bitfinex was using) claim that their system wasn't breached, it is likely that Bitfinex either lied about using multisig to protect customer funds or didn't implement the solution correctly.

As of cold storage, it's already been proven that Bitfinex outright lied about it:
Before the hack https://archive.is/miyPF
After the hack https://np.reddit.com/r/BitcoinMarkets/comments/4vtv1m/bitfinex_down_due_to_bitcoin_security_breach/d61pmuy

I have the same feeling Bitcoin wont go anywhere if really safe decentralized exchanges can not be developed. This could bring a lot of liquidity to Bitcoin trading. Current situation with centralized exchanges is these can be hacked or inside job can siphon off all deposited Bitcoins, thats why its very risky to trade the Bitcoin at exchanges and this limits Bitcoin liquidity a lot.

The number of possible transactions must go up as well since Bitcoin is almost on allowed transaction limmits decided to be enought many years ago - but technology advances continuously and without more transactions possible Bitcoin cannot be used much more than today, so not dying but on the limit already without possibility to be much more popular option.

Maybe waiting upwards of 100 confirmations on deposits and withdrawals similar to mining. Once the deposit hit required confirmations it could be traded freely on the exchange until withdrawn. It would definitely buy some time in the event of a hack.

What is the point of having Bitcoin if you can't use it?
This is no different than any other transaction done with Bitcoin, you have to trust the receiving party to do there part. I don't care if you are purchasing product with bitcoin or using an exchange. Yes things can be hacked and precautions need to be taken. I don't get why most of the comments are about exchanges, are any other provider of services any different?
   This is the whole problem with transactions to known or unknown parties. They have the responsibility to handle things correctly. If you drop your car off for maintenance and it get stolen who's problem is it? It's not the shops right, you were stupid enough to take it to the shop. Any shop can get jacked/hacked.
   Is this really a valid argument about leaving your bitcoin on exchanges? You have to know who you are transacting with or take out insurance. As we all know things happen. Your cold storage can get destroyed, bitcoin gone.

These exchanges are fucking things up for Bitcoin with this piss ass security breaches and hacks. I wonder how many of these hacks are genuine .... many of these looks like inside jobs or stupidity of

the people hosting these services. It blows my mind that a exchange with a daily 10k+ bitcoin volume, can be this unprofessional and prone to attacks. I would only start using these services, if we can

find a decentralized exchange that solve the fiat problem for the conversion.   

...

Perhaps we will just have to get used to the occasional robbery of BTC from exchanges (etc.).  It looks like these thefts will not stop.

There is risk of theft of most assets, including gold.

Many of us can improve our security however: hide gold well and store BTC in hardware wallets.  Those are simple steps to better secure your holdings.

It is not a hack obviously. I would like to speculate that this is an "inside job".The amount adds up to 60 mln dollars in bitcoin some they say. Do you think that with this amount of bitcoin in dollars in their pocket Bitfinex gives a damn about their users ? I really think no and everyone who had some coins in there should stop hoping and learn the lesson everybody is talking about to never keep your coins in exchanges or even on online wallets as they too can disappear one day.

I never keep my coin on any exchange nor in my bitcoin address from last couple of months i have heard too many bad news about bitcoin so whenever i get payment i immediately cashout it to my local currency. I don't trust any exchange.

Sorry for your loss everyone.

The only real successfull option would be running a decentrialized exchange.
I heard and see upcoming projects like these and hope they will be a big succes, so "hacks" will not happen anymore.

people who too lazy to move their funds to their own wallet should be considered as lazy ass

Unless you're trader, there's no reason to keep your bitcoin at exchange, but many people don't care about it at all.
It might be rude, but this must be great lesson for those who still dare to keep their bitcoin at exchange.

Can we stop with these "don't keep your coin at exchange" talks? without exchange traders, there would be no liquidity in Bitcoin. There's no way for traders to not keep coin at exchanges.

There are ways to secure an exchange, with cold storage, and so far 0 cold storage has been hacked, so it works. Bitfinex didn't use cold storage, and got hacked, end of story. In the future, refuse exchanges that doesn't PROVE it has 95%+ customer funds in cold storage.

They were legally prohibited from using cold storage by the CTFC of US government. That's why they went to the next best thing BitGo. Which turns out to be a disaster for them.

if everyone does this BTC will simply die.


Most of the reason BTC works is exchanges like this stand to turn some profit on trades and speculators.

This is very simple  btc  transactions  run 300,000 per day on average on the actual blockchain.


What happens here on this is exchange is  I give a btc.  It is 1 transaction  my address to the address on the exchange.  That shows on the block chain.


On the exchange servers  that btc is chopped diced and converted  to other coins cash what ever  with next to zero   transactions on any blockchain of any coin.

this is how btc still works as a commodity  that is tradable.  If every transaction my 1 btc did was on a chain  it moves to slow to trade.


Anyone that says don't leave money on an exchange is correct if you simply want to convert the coin to another coin or to cash.

But if you have any desire to buy and sell and trade you must leave the coin in the hands of the exchange.

Frankly the owners of this company should be put to death by Chinese government since Hong Kong Belongs to China last that I heard and China still has the death

penalty.

I only say this because they are guilty of murdering crypto coins due to insanely stupid security. If people think the ETH fork into ETH/ETC was bad this is worse. Since killing off  a huge exchange makes the coins closer to worthless ness.   Without a safe way to trade and without a larger on blockchain transaction limit BTC is going to die.
This is where we are today.  Exchanges crash and burn time and time again.  Plus the blockchain transaction cap stays the same.

To those that say traders should not trade crypto coins  I will forgive you for lack of understanding  why the coins exist in the first place.
Hint  sitting in a few addresses doing nothing is not the  correct answer.

I assume banks don't get robbed or hacked ?
It's possible to secure your bitcoins , even more secure then putting them into a bank If you know what you are doing of course. Paper wallets could be an option .however, don't run a desktop wallet and download some "Bitcoin-generator.exe" then expect it to be safe.

yes i have been learn it since cryptsy got hacked and my friend lost his funds on those exchange i have strong reason to not trust them 100% and currently i personally more prefer to save all of my bitcoin to my own wallet because i could get full access and control all of my funds but in exchange i could not able to do that