Bitfinex discovered a security breach and halted trading!

[wpalczynski]

...
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.
...
in bold area, is this same thing like in gox before??

No. Mt.Gox attack was related to Mt. Gox's hotwallet being emptied over many
weeks/months by "transaction malleability" (Or so Karpeles has claimed). It was not
related to an individual user's wallet/address, but site's wallet.

Currently, Bitfinex is saying "some users are reporting" this, so I assume these people
were all hacked (bad pws) or downloaded keyloggers and the attacker decided to grab
everyone's btc within the exchange, at the same time.

The Bitfinex attack is reported to have been conducted today.
So previous BTC market price declines are not related (in theory).

This is my opinion based on current info, which is no real info yet, lol.

Previous decline could be related to stolen funds being dumped depending on when they were stolen and how much was stolen.  There is no reassuring statement about cold storage coins being safe which is somewhat disconcerting.

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[tvbcof]

What are we going to call it if/when it turns out to be yet another in a loooong list of scam, or at the vary least incompetently operated exchanges?  Bitfinished?

Such a shame for shrewd traders who used Bitfinex as their only option because it is times like these when it is possible to make a fuck-load of money.  Or lose it.

On Bitcoinity it looks like Bitfinished's feed stopped at $604.  So, some time after the current plunge started.  What are the odds that an unrelated 'hack' was just discovered right when they would have been probably having some significant strains due to notable external market fluxuations?  Maybe 'external'.

[leigh2k14]

https://twitter.com/maraoz/status/760590406870507526

1% of BTC gone

[Rampion]

A bit less. 119,756 confirmed hacked: https://www.reddit.com/r/Bitcoin/comments/4vupa6/p2shinfo_shows_movement_out_of_multisig_wallets/d61oe33

[leigh2k14]

Centralized exchanges have and always will be the weak point in crypto.

Time for blocknet!!

[Quickseller]

It looks like they lost roughly 120kBTC. They are claiming that not all of their customer BTC was stolen, although that is a very vague statement.

It looks like there are still roughly 1.85 million BTC left in multisig addresses, so that should give a rough maximum amount of BTC that might be remaining in their possession (although it is likely to be significantly less then this).

Does anyone have any idea as to how much BTC bitfinex was holding for their customers?

edit: from the looks of it, I would give a rough estimation that they have gross trading revenue in the amount of ~73,000BTC per year from BTC/USD trades alone. They are likely to have made additional revenues from other trading pairs, especially the ETC/ETH related trading pairs, as well as lending commissions.

[bestluck]

From a few months there are a number of bigger issues with this exchange, due to this exchange the price of bitcoin crash a month ago and today once again because of it the price is going downward much faster and a lot of people are losing their money at their, They should have to go now as this exchange failed in performing its duty.

[DOGE12321]

Bitfinex just announced they discovered a security breach in their website and halted all Bitcoin deposits and withdrawals because bitcoins were stolen.

https://steemit.com/bitcoin/@soapsadu/bitfinex-discovered-a-security-breach-and-halted-trading

What do you think?

That's a shames. It was bound to happen soon. Let's hope they fix the breach soon.
Possibly that it why BTC is falling too.

[btckold24]

Never keep funds on an exchange, you exchange them and then remove them.

yep!! cant trust any of these online places anymore especially the exchanges. They go after the exchanges cause they know its
the best place. Whats that old saying "why rob banks?" cause thats where the money is.  Cant leave money in these exchanges
that you dont expect you can lose

[philiveyjr]

Bitfinex just announced they discovered a security breach in their website and halted all Bitcoin deposits and withdrawals because bitcoins were stolen.

https://steemit.com/bitcoin/@soapsadu/bitfinex-discovered-a-security-breach-and-halted-trading

What do you think?

That's a shames. It was bound to happen soon. Let's hope they fix the breach soon.
Possibly that it why BTC is falling too.

The damage is already done. People sell because of the fear of all those bitcoins landing in the selling market. They obviously will fix the breach, but the loss is so big, that they will likely not continue to offer the exchange.

[Quickseller]

the loss is so big, that they will likely not continue to offer the exchange.

They have said that they will reopen the exchange.

[philiveyjr]

the loss is so big, that they will likely not continue to offer the exchange.

They have said that they will reopen the exchange.

I would actually be surprised to see that happen. However I believe the comment you are referring to had this reply from the rep: " When i say relaunch i am referring to bringing the site back up so that people can close positions, withdraw etc."

So its not exactly coming back. Its only for withdrawals of altcoins or something like that.

[stingers]

There is no security breach! They are running with our coin

[LordCoder]

There is no security breach! They are running with our coin

The strategy is kinda good tbh, they used the block halving to confuse us.

[franky1]

they say 2 things
1, certain customers were hacked
2. they have over 1mill bitcoins in multisigs.

my questions are.
A)who had sole control of the hacked privkey?
by this i mean that the privkeys are owned by the central holder (the exchange) not the user. it does not matter how the exchange was hacked. even if someone gained access by hacking users passwords.. the coins were not stored on addresses "owned" by users (only a sqldatabase value). the users did not have access to the private keys so the users should not be individually victimized.
legally a user could say he is not at loss due to having no ownership of the privkeys that were de-funded.

b) if they have 1mill bitcoin in multisigs. does anyone have any blockchain analysis to see how many multisigs exist and the total bitcoin holdings of multisigs to see if their "reserves proof" can be proven

[JeffBrad12]

Bitfinex just announced they discovered a security breach in their website and halted all Bitcoin deposits and withdrawals because bitcoins were stolen.

https://steemit.com/bitcoin/@soapsadu/bitfinex-discovered-a-security-breach-and-halted-trading

What do you think?

That's a shames. It was bound to happen soon. Let's hope they fix the breach soon.
Possibly that it why BTC is falling too.

The damage is already done. People sell because of the fear of all those bitcoins landing in the selling market. They obviously will fix the breach, but the loss is so big, that they will likely not continue to offer the exchange.

And the panic effect for the bitcoin users it's will very hard to healing that. and the loss is enough to make some people feeling stressed about that. there so many loss we get from that cases. and that is just a one can make a big damage like this.

[Quickseller]

the loss is so big, that they will likely not continue to offer the exchange.

They have said that they will reopen the exchange.

I would actually be surprised to see that happen. However I believe the comment you are referring to had this reply from the rep: " When i say relaunch i am referring to bringing the site back up so that people can close positions, withdraw etc."

So its not exactly coming back. Its only for withdrawals of altcoins or something like that.

I don't think they have lost all of customer bitcoin. From what I can tell they have revenue in the amount of roughly 60% of the bitcoin losses from BTC/USD trades annually, although they do have some expenses as well. It looks like bitfinex might have another ~45kBTC in annual revenue from ETH/ETC related trading, although they have only been trading ETH for the past ~6 months, so they have possibly made 22.5kBTC in commissions via ETH. They would have needed to pay some of that to their various expenses, and the above estimates may be a bit on the high side.

they say 2 things
--snip--
2. they have over 1mill bitcoins in multisigs.

Where did they say this?

b) if they have 1mill bitcoin in multisigs. does anyone have any blockchain analysis to see how many multisigs exist and the total bitcoin holdings of multisigs to see if their "reserves proof" can be proven

According to p2sh.info, there are roughly 1.85 million BTC held in p2sh addresses currently. I am not sure how accurate this site is, nor how trustworthy the site is though.

[franky1]

According to p2sh.info, there are roughly 1.85 million BTC held in p2sh addresses currently. I am not sure how accurate this site is, nor how trustworthy the site is though.

seems the p2sh site shows that at 09:00-12:00 UTC (uk) 110k coins moved out of p2sh addresses..

now re-reading this whole topic. i misread what was wrote. i assumed someone was saying bitfinex lost 110k coins of over 1m coins.. now i see it as someone highlighting just some stats from p2sh.. and nothing categorically suggests that its bitfinex loss/holdings..

[goinmerry]

Probably the reason why bitcoin just went down 10% to about 560$.
I did not see this one coming!!!

No one saw it coming except the owner of that Bitfinex. If he did that intentionally then he fulfilled his goal in making bitcoin fall for a 100 dollars.

[Heutenamos]

what do you expect when it was based in Hong-kong(where there is no difference in white & black money) for obvious reasons ?

pretty unprofessional scam i would say.

Keep an eye on the 'crypto banks' (a.k.a centralized exchanges regulating crypto's). Polo is on the way bro's.

and nothing categorically suggests that its bitfinex loss/holdings..

of course after zane confirms it's their wallet/coins.