ShapeShift Offline After Hack - page 4.

Lauda

legendary

Activity: 2674

Merit: 2965

Terminated.

Quote from: LiteCoinGuy on April 09, 2016, 08:52:07 AM

"By design, ShapeShift doesn't hold customer balances, so even in the case of a security breach, there is no customer money at risk. However, a portion of our own hot wallet inventory funds were taken, but nothing that will interfere with operations once our new environment is online. This is also by design.

We've built customer protection into our platform – hacks may be inevitable, but customer losses should not be. Not a cent of customer funds was lost, nor could they have been."

That is a first (I think?). I do have to say that they did well when it comes to that aspect.

Quote from: upsidedown75 on April 09, 2016, 10:15:28 AM

I dont think shapeshift ever had the option to store your bitcoins or altcoins there, it was a on the spot exchange, where you send btc or altcoins and recieve the required after and sometimes without confirmation.

Apparently it did not and thus no customer funds were lost.

Quote from: ?? on ??

This is not an exchange, it was just currency exchange site.

Saying that it is not an exchange and that it is one in the same sentence does not make much sense, does it?

Paracelsus

sr. member

Activity: 347

Merit: 250

Activity: 2017

Well, we approaching to block halving and price will rise , this will attract more hackers to come and do their best,
against best exchanges..I wonder where they gonna hit next?

upsidedown75

legendary

Activity: 1288

Merit: 1036

Quote from: OmegaStarScream on April 09, 2016, 02:28:41 AM

Digital currency exchange service ShapeShift is offline after a security incident earlier this week.

A statement posted to Reddit by ShapeShift CEO Eric Voorhees offered more details as to why the site was taken offline, indicating an unknown quantity of funds had been taken from the service’s connected wallets. Customers with pending orders would receive their money within 24 hours, the company said.

See his post on reddit : https://www.reddit.com/r/shapeshiftio/comments/4dx6k4/shapeshift_update_april_7_security_breach/
and full article : http://www.coindesk.com/shapeshift/

More exchanges will open in the future and more will get hacked , so if you don't want to lose your coins and cry , you better store them well instead of keeping them in exchanges .

I dont think shapeshift ever had the option to store your bitcoins or altcoins there, it was a on the spot exchange, where you send btc or altcoins and recieve the required after and sometimes without confirmation.

LiteCoinGuy

legendary

Activity: 1148

Merit: 1014

In Satoshi I Trust

"By design, ShapeShift doesn't hold customer balances, so even in the case of a security breach, there is no customer money at risk. However, a portion of our own hot wallet inventory funds were taken, but nothing that will interfere with operations once our new environment is online. This is also by design.

We've built customer protection into our platform – hacks may be inevitable, but customer losses should not be. Not a cent of customer funds was lost, nor could they have been."

gj.

Chris!

legendary

Activity: 1382

Merit: 1122

Meh. I used them once out of convenience but the fees were so ridiculously high for transferring between certain coins. If you use the android app Coinomi, shapeshift is built in to make it a very simple process.

It's unfortunate that yet another security breach has been announced on yet another exchange. At least the CEO was upfront and honest about it. It, at the very least, shows he has some integrity.

Raja_MBZ

legendary

Activity: 1862

Merit: 1505

So sad to hear that. They provide such great facility, and I've always (and only) used them to convert my bitcoins to altcoins and vice versa. They seem to be just fine right now and hopefully everything is fixed now.

clickerz

hero member

Activity: 1414

Merit: 505

Backed.Finance

Thanks for the information provided. Im wondering why they are offline and cant be accessed. I'm thinking they are on maintenance or system upgrade until i read it here. But Now, shapeshift back to online. Thanks.

Denker

legendary

Activity: 1442

Merit: 1016

Quote from: Kopplex on April 09, 2016, 05:44:50 AM

That's why it's not a good idea to store your coins in these website Roll Eyes

Shapeshift does not hold any customer coins.This is no exchange or web wallet service like blockchain, coinbase, circle and so on.
The coins get swapped immediately and that's it.Therefore this is no drama imo.Sure it's never good press when you get hacked however as long as no customers funds are involved or lost I don't see as a big problem.
But it should make us aware never to store any serious amount of coins in third party services!

Kopplex

member

Activity: 66

Merit: 10

That's why it's not a good idea to store your coins in these website Roll Eyes

ralle14

legendary

Activity: 3346

Merit: 1914

Shuffle.com

I used shapeshift few times in trading few litecoins their service is always smooth and very fast didnt expect this to happen , after reading this im losing my trust in using their site.

franky1

legendary

Activity: 4410

Merit: 4766

Quote from: Snorek on April 09, 2016, 05:25:19 AM

Apparently people never learn that earning trust of customers is really hard - and you can lose it in blink of an eye. After successful hacking I feel like Shapeshift trust is shaken.
I wonder if they survive as I expect most of their customers to give up on them.

shapeshift is not a deposit, play around for the day, withdrawal system.

shapeshift is where you type in an amount of what altcoin you want, and the address you want the altcoin delivered.. and it tells you an address and amount to pay. and you pay it. then receive the coins at the destination.

its more OTC(over the counter) rather than daytrade(deposit).

so shapeshift could actually spin it into a positive that customers are always left whole.
(bar the inconvenience of the few that happened to have placed an order just seconds before the site closed, who should get their requests filled soon)

but generally if there were lets say 10 customers every minute.. (14400 a day,5mill a year).. only 10 people would be inconvenienced by not getting their funds as fast as usual.

maybe some spin like
X mill customers a year only 0.000X% delayed

but still its been years now and i would have expected these services to have stopped using hotwallets on the front end server by now. there are more secure and practical ways to run a service without even having a hot-wallet on the same server

Snorek

legendary

Activity: 1400

Merit: 1001

Apparently people never learn that earning trust of customers is really hard - and you can lose it in blink of an eye. After successful hacking I feel like Shapeshift trust is shaken.
I wonder if they survive as I expect most of their customers to give up on them.

Amph

legendary

Activity: 3248

Merit: 1070

never used them, and anyway i never lost anything on any exchange, always fast withdrawn everything i have the same day after i make profit

but after they broke the security of cryptsy i'm not surprised by anything

Lauda

legendary

Activity: 2674

Merit: 2965

Terminated.

Quote from: OmegaStarScream on April 09, 2016, 02:28:41 AM

More exchanges will open in the future and more will get hacked , so if you don't want to lose your coins and cry , you better store them well instead of keeping them in exchanges .

I thought that people learned from their mistakes with Mt. Gox, but apparently that was not the case.

Quote from: uncaer9 on April 09, 2016, 02:39:50 AM

Im never use shapeshift.io but i think this is verybad news Sad

I wouldn't classify it as 'very bad', rather just negative.

Quote from: setupbounds on April 09, 2016, 02:38:21 AM

So its time we move to Mobile wallets which are more safer then Desktop wallets i guess.

1) Mobile wallets are not safer than desktop wallets.
2) ShapeShift is not a wallet.

amacar2

legendary

Activity: 1120

Merit: 1008

CryptoTalk.Org - Get Paid for every Post!

No any bitcoin or crypto related service are out of watch of hackers and hacker may have figure out that shapeshift store most of their money in their hot wallet which can be hacked by finding some loop hole in script.
They are saying "no customer money at risk. ". hope this is true and nobody will loss their coin.

Ch3wbacca

full member

Activity: 125

Merit: 100

Most likely the Bitcoin wallet will be touched including ETH

uncaer9

sr. member

Activity: 413

Merit: 250

Im never use shapeshift.io but i think this is verybad news Sad

hope he save the bitcoin at safety place

setupbounds

hero member

Activity: 910

Merit: 509

Also they did not give a timeline for when the service which is currently off will be restorted ? Also there is no grantee if the lost money of the people will be returned or not.

So its time we move to Mobile wallets which are more safer then Desktop wallets i guess.

OmegaStarScream

staff

Activity: 3500

Merit: 6152

Digital currency exchange service ShapeShift is offline after a security incident earlier this week.

A statement posted to Reddit by ShapeShift CEO Eric Voorhees offered more details as to why the site was taken offline, indicating an unknown quantity of funds had been taken from the service’s connected wallets. Customers with pending orders would receive their money within 24 hours, the company said.

See his post on reddit : https://www.reddit.com/r/shapeshiftio/comments/4dx6k4/shapeshift_update_april_7_security_breach/
and full article : http://www.coindesk.com/shapeshift/

More exchanges will open in the future and more will get hacked , so if you don't want to lose your coins and cry , you better store them well instead of keeping them in exchanges .

Topic: ShapeShift Offline After Hack - page 4. (Read 3778 times)