[Bitfinex Hacked] So , learned the lesson ?

[ionomy]

It is quite amazing the amount of BTC that was purportedly taken in one foul swoop and there does seem some inconsistencies with the 'security' layers that were 'hacked' into - this should well all come out in the wash in time... Whatever the case, in that the general public to advanced traders - the ripples from this latest loss will spread far and wide; even down to a mining level especially after the recent reward halving, let's hope the smaller guys will get some remittance for the funds lost. I am not forgetting about the bigger fish but they can take blows easier and with less consequence than us mere mortals.

[Watercooler]

After MtGox, Mintpal, Cryptsy and now Bitfinex, people should learn to not use exchanges as
your Bitcoin / altcoin wallet. Store coins you don't use for daily trading in you own wallet, preferably
in an offline wallet ( hardware or paper ).

[nydiacaskey01]

After MtGox, Mintpal, Cryptsy and now Bitfinex, people should learn to not use exchanges as
your Bitcoin / altcoin wallet. Store coins you don't use for daily trading in you own wallet, preferably
in an offline wallet ( hardware or paper ).

They cant help it, traders need to store some amount of Bitcoins in their wallets in exchangers so if there's an opportunity they can buy or sell immediately. Traders may lose their opportunity because of transferring in and out of your exchange wallets and there maybe some fees to be deducted if its being transferred out.

[Betwrong]

Once again , Bitfinex has been hacked and I just want to ask you people , have you learned the lesson yet ? I assume not otherwise you wouldn't keep your funds in an exchange (I'm not speaking with those who kept their bitcoin for short period of time , those accidents happens but I'm mostly speaking for those who had their bitcoins laying there for weeks/months)

I'm not trying to be rude or anything but for the last time , please ... please ! Just withdraw your funds from exchanges . I'm not sure what you got to lose here , this procedure will only secure your coins and make you safer.

I'm very sorry if anyone lost their money and I'm sure hackers will not be happy with what they have stolen. Yes, if you have more than 20 USD in an exchange or anywhere else it's better to withdraw the money to your wallet and don't leave them for hackers to steel.

That's been said, I think Bitfinex, or any other site which was hacked, should return all the money to the users who lost them because it was their responsibility to prevent the hacking.

[OmegaStarScream]

Might be a stupid question:
Would it bring more safety if withdrawls on exchanges would be only possible to addresses the user gives his ok to in advance?
Maybe one when he registers, and others only after a certain time period? Let's say a week after the address is applyed at an exchange?

Well , I assume the hacker got his hands on the private key of the main wallet that Bitfinex use ? I don't think he hacked multiple user accounts otherwise that would be a good suggestion I guess but once again ... people will lose control over those addresses and that could be another problem.

[BestWebCreator]

Once again , Bitfinex has been hacked and I just want to ask you people , have you learned the lesson yet ? I assume not otherwise you wouldn't keep your funds in an exchange (I'm not speaking with those who kept their bitcoin for short period of time , those accidents happens but I'm mostly speaking for those who had their bitcoins laying there for weeks/months)

I'm not trying to be rude or anything but for the last time , please ... please ! Just withdraw your funds from exchanges . I'm not sure what you got to lose here , this procedure will only secure your coins and make you safer.

I'm very sorry if anyone lost their money and I'm sure hackers will not be happy with what they have stolen. Yes, if you have more than 20 USD in an exchange or anywhere else it's better to withdraw the money to your wallet and don't leave them for hackers to steel.

That's been said, I think Bitfinex, or any other site which was hacked, should return all the money to the users who lost them because it was their responsibility to prevent the hacking.

Lol, an unlicensed exchange will not be able to ask for help since the whole site was not legal.
Forget about getting money back, look at mt gox and cryptsy...

[mayax]

Once again , Bitfinex has been hacked and I just want to ask you people , have you learned the lesson yet ? I assume not otherwise you wouldn't keep your funds in an exchange (I'm not speaking with those who kept their bitcoin for short period of time , those accidents happens but I'm mostly speaking for those who had their bitcoins laying there for weeks/months)

I'm not trying to be rude or anything but for the last time , please ... please ! Just withdraw your funds from exchanges . I'm not sure what you got to lose here , this procedure will only secure your coins and make you safer.

I'm very sorry if anyone lost their money and I'm sure hackers will not be happy with what they have stolen. Yes, if you have more than 20 USD in an exchange or anywhere else it's better to withdraw the money to your wallet and don't leave them for hackers to steel.

That's been said, I think Bitfinex, or any other site which was hacked, should return all the money to the users who lost them because it was their responsibility to prevent the hacking.

Lol, an unlicensed exchange will not be able to ask for help since the whole site was not legal.
Forget about getting money back, look at mt gox and cryptsy...

great point! i said the same since months ago. how can someone use an unlicensed exchanger in order to store/trade a lot of cash? they deserve their faith now.

https://bitcointalk.org/index.php?topic=1573336.msg15793815#msg15793815

[CoinBreader]

People will never learn! Biggest examples are mt gox, mintpal,, cryptsy and still they leaving coins in the exchanges, if met people where leaving also pos coins on a exchange! Not for trading note that!
In been lost money from trading and even from back door wallets for shitty coins! But no even once btc! Because I'm keeping my funds to my cold wallet! It is easy but for some people it's just not worth the effort? 💵💰.

[gentlemand]

People are too addicted to margin and liquidity to listen. Bitfinex is a special case though considering how many times they've ballsed up and as far as I know they've never compensated people who were margin called purely because of Bitfinex's fuckup.

Bitcoin does need active traders. Without them not a great deal happens. But there has to be a way they can trade safely.

[Jeremycoin]

Condolences to you guys who use Bitfinex, I myself almost wanted to do a trading on that site. I already interested to do that, I even have signed up there. But don't know why, I just felt like I don't want to do it that time. Luckily my hunch was correct, so my Bitcoin saved from this incident.

[Tanic]

I am holding my bitcoins on Yobit, now I am afraid a bit for my money there. Planing to withdraw everything I have there, just waiting a bit to the price rise a bit. By the way, when the price for bitcoin gone down yesterday, the price on Yobit stayed on pretty high level, like official was 529$ and on Yobit it was 585$. I wander why?

[sotisoti]

Prior to the recent breach, Bitfinex was claiming that they were using secure cold storage and multisig.

They claimed that they had used cold storage? Source?

I've found that claim as well on their website, which can be viewed though Google Cache.
Source: https://webcache.googleusercontent.com/search?q=cache:UvrqjyGeBZYJ:https://www.bitfinex.com/posts/30

But I've also read a couple of articles that claim they were not using any cold storage.

ok just confirmed that the cold storage thingie was there before the migration to bitgo in mid 2015

[CryptoBuddha]

Condolences to you guys who use Bitfinex, I myself almost wanted to do a trading on that site. I already interested to do that, I even have signed up there. But don't know why, I just felt like I don't want to do it that time. Luckily my hunch was correct, so my Bitcoin saved from this incident.

Just the same thing. Created an account but didn't move any coins there, still not sure why.

And then on Jul 27 they posted such news:

Jul 27, 2016

Platform issues

Resolved - We have got everything fixed and back to normal, the maintenance page has been taken down and trading is live.
 Jul 27, 02:34 UTC 

Update - We're currently running some last tests before bringing everything back online, hope to be back soon. Will have another update here shortly.
 Jul 27, 02:23 UTC 

Update - Positions will be the same as when trading was halted. We're currently working on returning everything back to normal. In the meantime we've put up the maintenance page. We'll continue to post updates here and on twitter (@bitfinex)
 Jul 27, 00:18 UTC 

Identified - We have identified the issue and are currently working on a fix.
 Jul 26, 23:59 UTC 

Investigating - We are actively investigating issues with the platform. We will keep everyone updated on here and twitter @bitfinex as we know more.
 Jul 26, 23:56 UTC

So after that I thought it would be unreasonable to move any funds there...

As we can see now, it often happens like this - a major problem causing some "maintenance" together with freezing all the trades and withdrawals, then a post of joy like "we have fixed it!", and then the end of story. The same scenario as it was with Cryptsy only that it was during a longer time frame there.

Anyone shouldn't have deposited or even traded there after Jul 26, at least for a while, but wait and see what would happen next.

[Doamader]

I am holding my bitcoins on Yobit, now I am afraid a bit for my money there. Planing to withdraw everything I have there, just waiting a bit to the price rise a bit. By the way, when the price for bitcoin gone down yesterday, the price on Yobit stayed on pretty high level, like official was 529$ and on Yobit it was 585$. I wander why?

Thats an easy question, yobit has less volume daily, the biggest exchanges handling more then 5000 bitcoin daily reacted to the news, yobit members didnt droped their bitcoins as some people made if not the hacker already dumping the coins. I trust blockchain i dont wanna be forced to install an wallet into computer again, but if something similiar this happens again it will be the way to protect my portfolio.

[Lauda]

https://web.archive.org/web/20160324083244/https://www.bitfinex.com/pages/security


<sub>Multi-sig Hot wallet
- Provided by BitGo (BitGo FAQ)
- Only holds minimal amounts (~0.5% of customer funds)</sub>


I am a bit confused by their statement: does the hot wallet only hold 0.5% of customer funds? Where are the remaining? (99.5%)

Thank you for that. I haven't visited Bitfinex often so I would not know myself. This is interesting, and from what I can gather:
1) This information was false to begin with (their staff member on reddit claims that there's no cold storage layer).
2) Something/someone made them change the way that they hold their coins which ultimately led to this.

ok just confirmed that the cold storage thingie was there before the migration to bitgo in mid 2015

So the information on the website was just outdated?

[dloghwak]

People are too addicted to margin and liquidity to listen. Bitfinex is a special case though considering how many times they've ballsed up and as far as I know they've never compensated people who were margin called purely because of Bitfinex's fuckup.

Bitcoin does need active traders. Without them not a great deal happens. But there has to be a way they can trade safely.

Ye Bitcoin does need active traders, and that's what all these 'I told you so! You deserve to lose your Coins!' sayers don't understand.
Bitcoin IS speculation, Bitcoin IS trading.

If you take away the speculation from Bitcoin, you have two guys purchasing alpaca socks left.
But then we could also stop the blocksize debate, as there would simply no transactions at all, that's a good thing I guess.


- Never used Bitfinex - lost no funds.

[dserrano5]

I'd say no. The people who had lost considerable amounts of money there, are at fault, not Bitfinex. Nothing is unhackable, and online exchanges are generally valuable targets for various hackers. It seems like the people in question (who suffered losses) have learnt nothing from Mt.Gox, Cryptsy and so on.

Do you have any suggestion on how to margin trade without keeping the coins on the exchange? Please don't answer "don't margin trade"

[kano]

People are too addicted to margin and liquidity to listen. Bitfinex is a special case though considering how many times they've ballsed up and as far as I know they've never compensated people who were margin called purely because of Bitfinex's fuckup.

Bitcoin does need active traders. Without them not a great deal happens. But there has to be a way they can trade safely.

Ye Bitcoin does need active traders, and that's what all these 'I told you so! You deserve to lose your Coins!' sayers don't understand.
Bitcoin IS speculation, Bitcoin IS trading.

If you take away the speculation from Bitcoin, you have two guys purchasing alpaca socks left.
But then we could also stop the blocksize debate, as there would simply no transactions at all, that's a good thing I guess.


- Never used Bitfinex - lost no funds.

Speculation on exchanges has almost nothing to do with transactions.

The VERY small amount of transactions are simply when you give your BTC to the exchange (yes you are giving it to them) or get some of it back (or in this case none)

[Vaccinus]

I'd say no. The people who had lost considerable amounts of money there, are at fault, not Bitfinex. Nothing is unhackable, and online exchanges are generally valuable targets for various hackers. It seems like the people in question (who suffered losses) have learnt nothing from Mt.Gox, Cryptsy and so on.

Do you have any suggestion on how to margin trade without keeping the coins on the exchange? Please don't answer "don't margin trade"

trade only the necessary, can you use api to send fund automatically, after you take profit?

[dserrano5]

I'd say no. The people who had lost considerable amounts of money there, are at fault, not Bitfinex. Nothing is unhackable, and online exchanges are generally valuable targets for various hackers. It seems like the people in question (who suffered losses) have learnt nothing from Mt.Gox, Cryptsy and so on.

Do you have any suggestion on how to margin trade without keeping the coins on the exchange? Please don't answer "don't margin trade"

trade only the necessary, can you use api to send fund automatically, after you take profit?

Trading and taking profit is not like going shopping and then leaving the shop until next week. You enter again to shop more. You spend more time inside the shop than outside. At the time of the hack my position was 10.70 BTC short. How can one be short while having their coins in their personal wallet?