ShapeShift Offline After Hack

[ebliever]

Here's the full story: https://news.bitcoin.com/looting-fox-sabotage-shapeshift/

Who's Bob?

Wow. I just read that whole article.

You can really feel Erik's frustration in this article. I can't imagine the stress that him and his team, with 4 brand new employees nonetheless, must have felt. I'm sure 'Bob' is going to get what's coming to him. I hope to hear when he does.

Same here. Glad to see that Erik's been able to figure things out as far as he has, rather than hitting dead ends. We can hope 'Bob' will soon be caught, face justice, and that Shapeshift will ultimately come out of this much wiser and maybe even made whole again.

If they have trouble catching up with 'Bob', I wonder if it might be worth it for them to share all they know of him to help find him in real life. There are a lot of bitcoiners out there who could be eyes and ears for Shapeshift and for the sake of justice would be willing to help nail him.

[fuathan]

Human factor... 

http://www.itgovernanceusa.com/blog/shapeshift-loses-230000-in-bitcoin-data-breach-ex-employee-to-blame/

[Avirunes]

Currently, the site is back up and actively trading only Bitcoin and Ether. The Shapeshift.io Twitter account stated that other coins will be trade-able in coming weeks and the company will notify users of that as the process of fixing the back end continues.

Even then most of their customers will not come back to them even if they lose nothing, because the trust is shaken. Why will they now risk even.
there are plenty for other site where they can exchange coins and also without fear 

I dont think that most of customers will not use shapeshift provided if they process transactions of their customers as they said.Risk is in every exchange site .In today's world you are not 100% secured.There are many flaws that remains undiscovered by the sites technical staff which can be exploited if hacker discovers it first.Same here happened with Shapeshift.

[Indianacoin]

At least this is not incident: MT GOX 2.0
Shapeshift was an instant service and the company lost their incomes after this incident.

The major drawback would be the collapse of services which are integrated with shapeshift. 

[monsanto]

Unfortunately lately, this is becoming a very known practice, that at sometime, some of the best exchanges use their excuse an inside hack and take people money, thats very sad, no matter who has the fault, some inside worker or the owner, thats sad and thats why I never keep money in online exchanges, you never know what can happen tomorrow to your coins.

Without reversibility it seems this will always be a problem.  Even with multisig, etc, insider theft will always be a risk it seems in crypto.

[OmegaStarScream]

Just to let you know (those who don't already know) , It's online once again. I don't think it's necessary to tell you it's not safe to hold your coins in an exchange .

[ebliever]

Just to let you know (those who don't already know) , It's online once again. I don't think it's necessary to tell you it's not safe to hold your coins in an exchange .

Which isn't relevant for Shapeshift. That was one bit of very good news out of this whole episode.

[setupbounds]

Since this hacking thing is increasing now a days, i guess we should be more careful with our Coins and the wallets and exchanges we use.
We should be careful in choosing the wallet and exchanges. below is my recommendation.


Xapo  for web wallet
Electurum  for desktop wallet

In exchanges you should not keep the money. Do the transcation and move the money back to your wallet.

[Indianacoin]

Just to let you know (those who don't already know) , It's online once again. I don't think it's necessary to tell you it's not safe to hold your coins in an exchange .

State the facts correctly. Shapeshift does not hold customer's funds at all. Even if it is online from yesterday that does not mean it is unsafe for customers again. All hacks that happened had significant losses to their own funds on hot wallets.

[katiecbell]

I wonder if ShapeShift will ever be able to bring its trust back ?
Once you lose a trust, it is difficult to gain it back

[ebliever]

I wonder if ShapeShift will ever be able to bring its trust back ?
Once you lose a trust, it is difficult to gain it back

Read the prior post, or mine a couple above. No customer lost a satoshi. Stop spreading FUD.

[geopolisch]

It is very annoying news for the people who hold their accounts in there. Although Shape Shift does claim that they does not hold customer balances on that site     Now it’s hard to convenience and bring back the trust which people had before.

[btc_zero_sum]

It is very annoying news for the people who hold their accounts in there.

shapeshift has no account system, do you even know what are you talking about?

[CryptoVision]

The fact is, there are no many chances for mistakes in cryptoland.

[BitcoinHodler]

it is good to see a good service like shapeshift coming back even after such a big hack. i hope they never have any trouble again.

[alyssa85]

That's what I assumed how it works. The model business is that hey offered a way to exchange coins without having to deposit them, which would make the risk of getting your coins stolen impossible. The profit they would make, is from the fees of the transaction. Now, what I assume that was stolen, is this amount of fee money they made (their money) and not anyone's elses money. In case im wrong then someone please explain it better.

You are correct - it was their profits from fees that were stolen. Props to Voorhees for sharing the detail of the story - that way other exchanges can improve security - such as getting an external security expert to audit weaknesses and sweep the servers for trojans such as the one "Bob" placed in the Shapeshift set up.

that does make sense as long the external security expert is a trusted person,if they'd hire a person with fake data, all their effort will end up losing ton of money again,even with all of possibilites from being hacked because "none of securities are perfect"

This. What brought down Mintpal is that the owners decided to hire someone (Moolah) who appeared to be a trustworthy person, but as soon as he was put in charge of managing the site, he looted it.

[Labumi]

it is good to see a good service like shapeshift coming back even after such a big hack. i hope they never have any trouble again.

true, there is a possibility that shapeshift has come back in a much better State than it used to be. It is possible that shapeshift do very strict security, so that the possibility of a small hacking will happen

[Maru2]

Here's the full story: https://news.bitcoin.com/looting-fox-sabotage-shapeshift/

Who's Bob?

Wow, it takes some time to read all of it but its deeply frustratin most of the time.
At least it gives a real pov of how much "balls" you need to have to be on such startups. My question is if that is going to destroy or add in Shapeshift's reputation. Personally, after read all the details, I kind feel more willing to deal with them. Hope they get along with no problem in this new year...