Impact of Bitfinex hack on the economy - page 3.

stompix

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Quote from: Lucius on February 10, 2022, 08:05:50 AM

Bitfinex was hacked by two Israeli brothers, and the people in question are just trying to launder that money - although there is no doubt that there is a connection between them - but those who devised the hack are still two brothers, one of which belonged to a special section of the Israeli IDF army.

Quote from: https://www.coindesk.com/markets/2019/06/24/two-israeli-brothers-arrested-for-phishing-fraud-bitfinex-hack/

The Israeli Police cyber unit arrested two brothers, Eli and Assaf Gigi, for allegedly perpetrating a multi-year phishing scheme and participating in a 2016 hack of Bitfinex. Israeli news outlet Ynet reports the two allegedly stole over $100 million in cryptocurrency... Eli is a former computer science expert in the IDF, which one reddit user said “would be Unit 8200, the largest military branch in the Israeli army. It specializes in hacking, spying and creating computer viruses (Stuxnet) - many of them are now employed by Google, Microsoft and Coinbase.”

That is just poor journalism from coindesk

Quote

The Gigi brothers Eli, 31, and Assaf, 21, also allegedly constructed a phishing scheme that involved luring investors from crypto trading forums, such as Telegram or Reddit, onto websites that mimicked prominent crypto exchanges. They would collect the traders’ login and wallet information and use it to transfer the funds stored on legitimate exchanges to their own accounts.

They didn't hack anything, they were just sending phising links to eveyone, why would you try to get login details when you had access directly to the cold wallet?

hugeblack

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The issue of arresting them does not seem logical because hackers have technical knowledge that makes them keep that money in cold storage instead of this method.

Quote from: Lucius on February 10, 2022, 08:05:50 AM

Bitfinex was hacked by two Israeli brothers, and the people in question are just trying to launder that money - although there is no doubt that there is a connection between them - but those who devised the hack are still two brothers, one of which belonged to a special section of the Israeli IDF army.

Perhaps this story is more logical because I think hackers are smarter than that in general. Let's wait for more details, because it seems that what happened may be a coincidence or related to another case.

Quote from: Dunamisx on February 10, 2022, 04:26:36 AM

What impact do you think this will have on bitcoin price if the total seizure were back into circulation?

It will not have an effect. On the contrary, the effect will be positive. The seized money often takes a while to return to the platform, and after paying taxes and others, the matter may settle from one to three months.
Thus, when it is pumped into the market, the price may have gone up already.

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Quote from: Dunamisx on February 10, 2022, 04:26:36 AM

$3.5 billion recovered out of the stolen $4.5 billion by
the couple: Heather Morgan and Ilya Lichtenstein after a thorough investigations, they were arrested by the US department of Justice for being the masterminds behind the hack of Bitfinex exchange in 2016 claiming about $4.5 biliion

Bitfinex was hacked by two Israeli brothers, and the people in question are just trying to launder that money - although there is no doubt that there is a connection between them - but those who devised the hack are still two brothers, one of which belonged to a special section of the Israeli IDF army.

Quote from: Dunamisx on February 10, 2022, 04:26:36 AM

What impact do you think this will have on bitcoin price if the total seizure were back into circulation?

Do you think that 90+ thousand BTC can mean something in a market that has almost 19 million BTC in circulation (mined so far)? These funds will one day either be sold at auction or partially returned to Bitfinex, which should return them to damaged clients. These coins have not disappeared from circulation, nor will they disappear if their owner becomes someone else.

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The impact will be on credibility of exchanges and in the safety. Also the general public may think that crypto is "dangerous" or "risky", but I got the feeling that it is anyway the case. As always, your keys you bitcoin and anything else is running an unnecessary third party risk in the form of custodial intermediaries. The lesson that has to be learnt over and over is that if you hodl a significant bit of bitcoin you should not have it on a exchange or at least not in just one exchange.

Other than that... there may be a dip in price, so excellent to buy more.

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Quote from: Dunamisx on February 10, 2022, 04:26:36 AM

What impact do you think this will have on bitcoin price if the total seizure were back into circulation?

Nothing. No matter what the good and bad news are there, one thing for sure is that bitcoin will continue to thrive. And even those seized coins are back in circulation and they start selling it, it will eventually go up as everyone's going to buy those cheap bitcoins.
There's really no need to worry about this news. We've seen many type of bad news and FUD yet the market has grown stronger and better. That's what I think and it doesn't make me worry whether they put that seized coins on an auction or dump it immediately.

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It really depends on what they're going to end up doing with the money. If they ended up deciding to sell it for whatever reason, it's really unlikely that they're going to dump it on spot exchanges in the first place. Instead, they're very likely going to sell it through OTC as to not heavily and directly impact the market.

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Quote from: Dunamisx on February 10, 2022, 04:26:36 AM

As am against any unlawful act as such in Bitfinex hack, my question is that, what can we say about government impact on regulating crypto as in the case of Bitfinex.

What impact do you think this will have on bitcoin price if the total seizure were back into circulation?

Obviously this huge amount will be refunded to all affected user on Bitfinex. However the government can seize it if Bitfinex didn't claim it. The impact will be huge because the government will surely liquidate it immediately after the court decision since it will be beneficial for them as additional budget. The amount is too huge for them to still hold it for a long time so they will sell it off or auction it for public buy. This will surely create panic among the Bitcoin holders because this is a huge quantity that needs to be absorb by the current circulating Bitcoin.

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Sounds shady to me. I don't really buy that hacked crap anymore. This was probably a inside job. Maybe it was all planned. If there was a real hacker, he probably wouldn't do something that stupid knowing that he won't spend any of that money. Something don't fit right here.

As for the bitcoin holders, you shouldn't worry at all. $3.6b is small potatoes now. It won't affect the markets.

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Quote from: Dunamisx on February 10, 2022, 04:26:36 AM

Aside the hack, it was stated that they own one of the wealthiest bitcoin account of which i know that privacy is not secured here which is one of the major reasons one have not to make use of centralized exchanges.

Even if they are the one that worked for the coin, it can be seized by the government. What I just wish to know is how almost the whole amount of the bitcoin when Bitfenex was hacked were with them possibly they are the hackers. But only noncustododial ways and decentralized means of exchanging can help in having total control

Quote from: Dunamisx on February 10, 2022, 04:26:36 AM

What impact do you think this will have on bitcoin price if the total seizure were back into circulation?

If you are a bitcoin holder, you do not have to panic, the effect of this on bitcoin price will not be significantly noticed.

Dunamisx

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$3.5 billion recovered out of the stolen $4.5 billion by
the couple: Heather Morgan and Ilya Lichtenstein after a thorough investigations, they were arrested by the US department of Justice for being the masterminds behind the hack of Bitfinex exchange in 2016 claiming about $4.5 biliion

Quote

“After the execution of court-authorized search warrants of online accounts controlled by Lichtenstein and Morgan, special agents obtained access to files within an online account controlled by Lichtenstein. Those files contained the private keys required to access the digital wallet that directly received the funds stolen from Bitfinex, and allowed special agents to lawfully seize and recover more than 94,000 bitcoin that had been stolen from Bitfinex. The recovered Bitcoin was valued at over $3.6 billion at the time of seizure.”

Aside the hack, it was stated that they own one of the wealthiest bitcoin account of which i know that privacy is not secured here which is one of the major reasons one have not to make use of centralized exchanges.

As am against any unlawful act as such in Bitfinex hack, my question is that, what can we say about government impact on regulating crypto as in the case of Bitfinex.

What impact do you think this will have on bitcoin price if the total seizure were back into circulation?

Topic: Impact of Bitfinex hack on the economy - page 3. (Read 398 times)