[2016-08-14]Why the latest bitcoin hack should make you worried about your money

[WishICanTurnBackTime]

The digital currency markets repeatedly remind us of a tired but true maxim: your money is only as secure as the bank that guards it.
After a recent hack resulted in the theft of $70 million worth of bitcoin, Hong Kong-based Bitfinex caused a minor panic when it announced it would spread the losses equally among all its customers, even those whose holdings weren’t touched. In doing so, the exchange called our attention — yet again — to how vulnerable virtual currencies are to criminals who hack through the Internet-connected systems that handle money transactions.
Proponents of the technology behind bitcoin say the problem isn’t with the blockchain technology that underpins the currency but rather with the way exchanges store the code that determines ownership. In other words, the banks’ security is to blame.


http://www.salon.com/2016/08/13/why-the-latest-bitcoin-hack-should-make-you-worried-about-your-money/

[European Central Bank]

anyone with the ability to google would discover in around 1 minute that bitfinex does not resemble a professional operation in any way. they shouldn't even pretended to have been professional because everything about the way they're set up is not.

all bitfinex is is some site with a bit of track record. there was no regulation, no insurance, no clear structure.

i'm sorry for anyone who lost out with them, but it shouldn't be a surprise to anyone. there were no assurances or checks and balances that inspired any confidence. it was only ever a matter of time.

[Gahs]

Plus the fact that it most likely was an insider job, you can't steal millions of dollars without getting some inside info.

[Kaneki]

the problem isn’t with the blockchain technology that underpins the currency but rather with the way exchanges store the code that determines ownership.