Topic: Bitfinex. Will they cover the 65 million dollar BTC Theft or just fold? - page 2. (Read 2162 times)

Bitcoin exchanges have it within their power to tell customers who were robbed on their exchange, to go and fuck themselves quite frankly.

That is what Kraken told me, and many other Kraken customers just two weeks ago when a bunch of Kraken accounts got emptied. In all probability, Kraken's Bitgo system got hacked as well, but to a much lower amount, and Kraken covered their losses by robbing 'unprotected' customer accounts, and then blaming the losses on the customers.

I suspect that Bitfinex shall reopen, and in one way or the other, will pass on the losses to it's customers. Either just telling those customers who have seen large chunks of Bitcoin leave their Bitfinex wallet addresses, 'tough shit', ya all have been bumped, or they will socialise the losses, and everyone takes a haircut.

Bitfinex was by far the major and most liquid USD exchange. I suspect that the operators/owners of the exchange will resist just lying down and dying right away.....they will hobble along on life support for a while yet.

this was posted on another thread ..have not checked it but if true they never multi-sig'd crap ...and will dump it on the customers...likely in their terms of agreement it is your
multisig (supposed) wallet thus your problem

here is the quote..if true imho they will wash their hands of the responsibility imho

We don't use cold storage for bitcoin, since our implementation with bitgo we've used segregated customer wallets so that each user has their own bitcoin wallet.

bitgo is saying they were NOT compromised at this time also I've read

what a cluster

If they have anything left they might give a small amount back but in my opinion they will not pay and fold. hacking Involving BTC is getting worst.

My money's on BitGo being compromised. They used a unique 2-of-3 scheme in which they have (or can get) access to 2 of the keys. At least they did two years ago, and I as far as I know nobody heeded the warnings that this was a stupid idea.

1. According to some sources, which can be considered "trustful", the stolen amount was 119,756 BTC. This is more like $72-75Mn (considering the price of Bitcoin at the time).
2. I'm not sure what was the exact market cap, but the breech is probably the major reason, which wiped out between $1.5Bn and $2Bn in the cryptocurrency market. The loss is not only on Bitfinex, but it is also to day traders, "weak hands" and pretty much everybody. We are talking about 100s of millions $ in "short term losses".

Personally I believe that Bitfinex have the funds to recover the loss, but more important is that cryptocurrencies were hurt in general with another negative impact. Don't exactly remember, but I think that only Karpeles is blamed for the 750k BTC "stolen" from MtGox. What happened next? He spend like a year in jail and was recently released. The way I see it, Bitfinex guys has 3 options:

1. Offer a good bounty for the hacker/s and I really want him to agree on that. The guy is already rich, but it has to protect himself all the time. If I was the hacker/s, I would accept the bounty for everybody's sake.
2. Take whats left (which would be tens of millions $ for sure) on the exchange, take some time in minimum security jail and continue with their lives on the back of everybody who had deposits on the exchange.
3. To (at least) try to restore all of the stolen funds.

I believe that 1st scenario would be best for everybody.

I thats almost $60,000,000++ according to some report,as value varies but still thats a huge amount. Hope they can recover it and continue its operation.Many clients are worried if they can recover thier bitcoin investment. Keep us updated here.

Great for who exactly? The ignorant people who kept a large amount of money on a singular service that is online 24/7, which is completely counter-intuitive to securing your own Bitcoin?

I've seen the word "must" hundreds of times, yet most people learn nothing from this. It's time to stop talking and start doing something.

You don't say?

I really don't know how they will handle this situation because that is really a huge amount. If they can cover that, well that would be great. However, if not, then we must learn some lessons from it. Storing bitcoin/money online is always a risk that's why we must consider things like this before deciding to put such amount. Even though I don't have money on Bitfinex, I do hope that they can fix this issue so that customer losses can also be addressed.

Honestly, every single person who lost money there is at fault. Have these people learnt nothing from Mt.Gox? Keeping high amounts of Bitcoin on online services is just a 'theft waiting to happen'. Bitfinex made two mistakes in their setup:
1) No cold-storage layer.
2) No withdrawal limit/sanity check.

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I couldn't care less whether these people get their money back. I'm more interested in how the hacker managed to get the money out of a multi-signature implementation.

They obviously aren't on 1 address.

anyone has the hash link from these 120k bitcoins?

No one is trying to deny anything, and yep those links that you provided seem to confirm that Bitfinex folks are admitting to the nearly 120k BTC loss, which hopefully also means that at some point in the very near future they are going to be able to provide an update to their status page including an admission to the amount of coins that they lost and maybe other relevant and detailed information that will help, instead of making us have to surf through various reddit threads to figure out what is going on.

Regarding the poll, I do now have enough information to answer it, which I did, and I see the poll results.  There sure is a lot pessimism regarding Bitfinex's ability to cover the losses... Surely, that is a lot of value (i mean the bitcoins) to admit to losing in such a short period of time,,, so yeah, understandable pessimism.

Well Zane says less than 50% of the held bitcoin was taken,no other altcoin was taken and no Cash.I think you will see bitfinex up and running quite quickly.As for how they address the losses now thats another issue but if you had US dollars in your account as I did I think they will still be there.

hey i admit it is a crummy poll I made

but the 'thread' seems to be there is no way they can cover that much $$ and survive...but take this poll with a grain of salt..if I had a life I woud not have made it

https://np.reddit.com/r/BitcoinMarkets/comments/4vtv1m/bitfinex_down_due_to_bitcoin_security_breach/d61oetn

This isn't "folks on reddit". This is Zane Tackett https://www.reddit.com/user/zanetackett, Bitfinex's community relations guy. This is as straight from the horse's mouth as you'll get.

It is confirmed in the just released WSJ article as well.

Time to accept it.

[Where is the: They won't cover, and will fold, option? or is that just implied?]

"They?"   I have read a couple of reddit threads that have that theory, but did Bitfinex confirm or admit to the situation? 

I am not trying to negate the potential validity of some investigations done by insightful technical folks, but we really need some kind of confirmation and/or rendition by Bitfinex - and maybe it is true that the Reddit folks are right on the money, but until then, I still consider the matter to be a bit speculative with some potential holes regarding the extent of money moved by whom and who controls the private keys and whether any of those moved coins are recoverable (or the private keys).

That's why the bitcoin price it's going down?

I have no idea, what if they did it from inside and now talking about some hackers. Who can cover 65 million dollars? Probably they will just give one big sorry letter to everyone, full with some excuses.

As I know this is not the first time something like this happening, and for sure not the last time. People should start to be more careful with their money, I never keep my coins on exchangers.

I'm sorry for people who lost their coins, but I doubt they will be refunded. Looks like people should think twice before choosing where they will trade.

I understand that a lot of folks are worried about bitfinex for their own coins and just the impact on the bitcoin infrastructure and image, and maybe I can be a bit too much of a nit picker.... but I am really thinking that we don't have enough information.. even though Bitfinex's actions kind of assume a worse case scenario, yet it is not for sure a given that either they lost as much as people are speculating or that they may not have some evidence regarding how they might be able to get them back... anyway, I do think that if they make some kind of representation regarding what happened and what is their plan, we will be in a better position to assess the situation, even if they are less than forthright in their depiction of the situation.

They have confirimed on reddit they lost just over 119 thousand Bitcoin

Investors getting ready to get shares. I think they will cover it somehow. Hope they do We don't want a second gox.