Security breach exchange Bitfinex - Update 6th of Aug 2016

https://twitter.com/bitfinex?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

https://www.bitfinex.com/

for status updates check here : https://bitfinex.statuspage.io/

Latest update dd 4th of Aug 2016 :

Latest update dd 6th of Aug 2016

Bitfinex Interim Update

Incident Report for Bitfinex

Just another example of why not to leave funds on an exchange for extended lengths of time.

I feel bad for those who lost out, I hope the amounts were minimal and Bitfinex is able to make everyone whole.

Quote from: Za1n on August 02, 2016, 06:21:11 PM

I cant believe i'm still surprised at this whole hacking thing but i actually am.
Thought their security was pretty tight nowadays after their last hack from some time ago ....

Quote from: Za1n on August 02, 2016, 06:21:11 PM

Didn't expect these guys to get breached! To minimalize the poor press that's going o cone from this, I'm in the same camp, I hope this is small and fixable. I wonder what happened here? I thought these guys had tight security like Coinbase.

well looks like 1ex.trade v2 is coming just in time!! Cool

i suggest u try a proper site for a change, new site will prob be up by tonight or sometime in the coming day or two.

meanwhile another 'big time' site hacked...when will they learn to stop being cheap and improve their fucking security!
they were just "down" like 3 wks ago. this is not some chump change btc they are dealing with daily here.

how much has been stolen?

might be relevant to the btc drop?

Quote from: criptix on August 02, 2016, 07:07:23 PM

how much has been stolen?

might be relevant to the btc drop?

they didnt say, only that they are investigating it..

Quote

We are investigating the breach to determine what happened, but we know that some of our users have had their bitcoins stolen. We are undertaking a review to determine which users have been affected by the breach. While we conduct this initial investigation and secure our environment, bitfinex.com will be taken down and the maintenance page will be left up.

for status updates check here : https://bitfinex.statuspage.io/
and here : https://twitter.com/bitfinex?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

Quote from: criptix on August 02, 2016, 07:07:23 PM

how much has been stolen?

might be relevant to the btc drop?

bitfinex is always relevant to btc, too much volume.
i was about to close my short when i saw this and now i think bitcoin is going deeper.

site always looked scammy, avoided since early 2013, never got how people would risk USD there for a 7% return.

I finally deposited a few ETC today to get the 100% APR and of course it goes down. LOL. I am the perfect jinx in crypto

https://m.reddit.com/r/Bitcoin/comments/4vutnt/at_the_time_of_the_hack_the_transactions_in_the/

Talk about 157, 000 BTC being stolen but others are saying could be as high as 700,000 BTC

I saw a picture and a reference to 700k or 120k BTC being hacked - can anyone corroborate?

There's no intrinsic problem with Bitcoin anyway. The market recovers eventually, some $800million market cap vanished over a 120K or $70milion BTC theft? Give me a break.

Anyway, the fucking stupidity of exchanges never seases to amaze me. I'm happy to have stayed away from Bitfinex and I am sorry for everybody for their losses. On the lower ends it looks like it could be around 17K BTC perhaps even less if the transfers were from Bitfinex themselves to save what could be.. hard to say much more without more details.

Hearing that ETC criminal coin wallets have also been compromised.

Quote from: Minecache on August 02, 2016, 11:00:46 PM

Hearing that ETC criminal coin wallets have also been compromised.

What do you mean by "ETC Criminal coin"?

Quote from: Minecache on August 02, 2016, 11:00:46 PM

Hearing that ETC criminal coin wallets have also been compromised.

Do you ever get tired of spreading lies? https://www.reddit.com/r/Bitcoin/comments/4vtuxo/bitfinex_security_breach_trading_will_be_halted/d61cjwa

Quote from: statdude on August 02, 2016, 11:14:04 PM

Quote from: Minecache on August 02, 2016, 11:00:46 PM

Hearing that ETC criminal coin wallets have also been compromised.

What do you mean by "ETC Criminal coin"?

dont try to understand mETH heads dude.

Quote from: qwizzie on August 02, 2016, 06:34:12 PM

Quote from: Za1n on August 02, 2016, 06:21:11 PM

I cant believe i'm still surprised at this whole hacking thing but i actually am.
Thought their security was pretty tight nowadays after their last hack from some time ago ....

It should be. After all the exchange hacks that have occurred in the history of bitcoin, it is funny that the exchanges today have not learned anything. Maybe some exchanges are set up and are running some sort of "long con" now? I do not know if it is just me but I am not comfortable keeping my money in an exchange based in Asia.

Latest update dd 6th of Aug 2016

https://bitfinex.statuspage.io/

Bitfinex Interim Update

Incident Report for Bitfinex

I told you they would be forced to pool the losses, and I updated that logic/explanation today:

Quote from: iamnotback on August 06, 2016, 03:29:03 PM

Quote from: iamnotback on August 03, 2016, 12:57:22 AM

I don't think the non-BTC accounts are protected. Even if they were also segregated accounts, the bankrupty of Bitfinex should view all segregrated accounts in equal legal standing, thus they all must suffer proportionally.

The theft is Bitfinex's liability.

So all non-BTC accounts on Bitfinex should be affected proportionally. I presume Bitfinex will eventually realize this. Unless law is somehow different in Hong Kong.

I presume the knee-jerk selloff of BTC is an overreaction. Bitfinex still has significant resources, so everyone on Bitfinex should probably get a loss but not a total loss.

Joel Katz is mistaken:

Quote from: https://steemit.com/theft/@joelkatz/legal-responsibility-for-the-bitfinex-theft-aka-bitfinexit#@anonymint/re-joelkatz-legal-responsibility-for-the-bitfinex-theft-aka-bitfinexit-20160806t152751462z

As I explained four days before, your logic that bankruptcy is required is incorrect because presumably the BTC funds held at Bitgo were not partitioned according to segregated accounts, thus the BTC is part of BTC and non-BTC pool of assets which backs all segregrated accounts BTC and possibly also non-BTC. Your logic would only apply to physical non-fungible assets. Thus even if Bitfinex were not bankrupt, it would still need to spread the loss proportionally to all "segregated" accounts BTC and non-BTC. The concept of segregated account is not to be used for what you are thinking, rather it is to protect the account holder from a lawsuit against Bitfinex which would attempt to grab those assets marked as owned by the segregated account owners. But since these assets are not partitioned by account number, then all of the BTC and possibly also non-BTC accounts are of equal standing w.r.t. to the asset pool. So although Bitfinex would be bankrupt if they could not pay the BTC account holders out of proportional losses for other account holders (BTC and/or non-BTC), they do not have to declare bankruptcy in order to spread the losses proportionally, unless the assets were partitioned by segregated account number. But with a fungible, electronic asset, it seems entirely arbitrary to mark some fungible units for some accounts if all were accessible by the same password set vulnerability. The vulnerability indicates the assets were not partitioned, at least not for all BTC account holders although perhaps one could make an argument that the non-BTC assets were partitioned since they were apparently not subject to the same vulnerability as partitioned. QED.

In other words, the pertinent qualifier is, “segregated from what?”. The crypto assets were segregated at least from the other business liabilities of Bitfinex, but not from each other (or at least not BTC accounts segregated from each other).