[Bitfinex Hacked] So , learned the lesson ?

[Cuidler]

Without a safe way to trade and without a larger on blockchain transaction limit BTC is going to die.
This is where we are today.  Exchanges crash and burn time and time again.  Plus the blockchain transaction cap stays the same.

I have the same feeling Bitcoin wont go anywhere if really safe decentralized exchanges can not be developed. This could bring a lot of liquidity to Bitcoin trading. Current situation with centralized exchanges is these can be hacked or inside job can siphon off all deposited Bitcoins, thats why its very risky to trade the Bitcoin at exchanges and this limits Bitcoin liquidity a lot.

The number of possible transactions must go up as well since Bitcoin is almost on allowed transaction limmits decided to be enought many years ago - but technology advances continuously and without more transactions possible Bitcoin cannot be used much more than today, so not dying but on the limit already without possibility to be much more popular option.

[alani123]

Prior to the recent breach, Bitfinex was claiming that they were using secure cold storage and multisig. It's not like users didn't get a warning with Bitfinex's outages, unprofessionalism and previous breaches recently but this false advertising was so over the top.

I don't get this one either , how could use Multi sig + cold storage and still get hacked for millions of dollars ? I will take my chances and say that this is an inside job.

Probably not even Bitfinex does up to this point. Assuming that they were indeed hacked and the whole incident isn't a complete fabrication...

Given that BitGo (multisig system Bitfinex was using) claim that their system wasn't breached, it is likely that Bitfinex either lied about using multisig to protect customer funds or didn't implement the solution correctly.

As of cold storage, it's already been proven that Bitfinex outright lied about it:
Before the hack https://archive.is/miyPF
After the hack https://np.reddit.com/r/BitcoinMarkets/comments/4vtv1m/bitfinex_down_due_to_bitcoin_security_breach/d61pmuy

[dserrano5]

In the future, refuse exchanges that doesn't PROVE it has 95%+ customer funds in cold storage.

Well that sure is going to be tricky. As a service provider, you'd have to prove that the keys to the funds are not stored on any online system, however you can't prove that something is not happening.

[microkr]

Dang this sucks.

[vero]

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.

the main problem we will always keep funds in exchanges, that for we can made trade any time when we want to buy or sell bitcoin. so what we must learn cause if we always made a deposit/withdraw it's need a time to get a confirmation so you will lose a chance to make a profit. in fact this is a risk we must acceptance.

[kokojie]

In the future, refuse exchanges that doesn't PROVE it has 95%+ customer funds in cold storage.

Well that sure is going to be tricky. As a service provider, you'd have to prove that the keys to the funds are not stored on any online system, however you can't prove that something is not happening.

It's called 3rd party audit.

[ImHash]

this is not entirely people's fault but the exchange is to blame as well, they should have taken more security measures to avoid such accidents imao.

[Kimi80]

 I'm new, and after reading your comments I see its not smart to hold coins on exchange site. I see many people talking about earning with trading, how to find good exchanger site?

 I read on internet news that bitfinex isn't licensed, how to know which exchangers are licensed? Are they better protected?

[RoommateAgreement]

i can never undestand how these exchanges lose this many bitcoin all in one place. i mean 119000 bitcoin is not a small amount.
if they have lost thousands or even tens of thousand i could undestand it, but how can you keep 119000BTC=75,000,000$ in one place and not protect it with all your life.

unless of course this is all a show, and there was no hack. they simply moved the funds to their other pocket and said we were hacked haha.

[Marvell1]

It is not a hack obviously. I would like to speculate that this is an "inside job".The amount adds up to 60 mln dollars in bitcoin some they say. Do you think that with this amount of bitcoin in dollars in their pocket Bitfinex gives a damn about their users ? I really think no and everyone who had some coins in there should stop hoping and learn the lesson everybody is talking about to never keep your coins in exchanges or even on online wallets as they too can disappear one day.

Yeah I agree has to be an inside job, Finex took the money and ran , same thing Cyrpsty did.

Maybe they had a internal breach i.e a large amount of funds stolen and then they are poping this to cover thier tracks

The whole point of multisig is it takes multiple PKs to access the funds how could someone get access to both and then leach out 120k btc so fast ?

at the minimum there would be a limit of maybe 100 BTC per withdrawal come on guys.

[mobnepal]

Actually i have learned lesson before also to diversify my bitcoin storage so i haven't kept all in one exchanger or wallet and at the situation when bitfinex got hacked i haven't any bitcoin there so no any direct loss of bitcoin for me however with the price total value of my bitcoin got down.

Currently i have only 20% of my bitcoin in total in all exchangers. 

[R2Pleasent]

I keep hearing about decentralized exchanges, and I think that this term is just laughable.  How do you create a decentralized exchange that allows you to cash in and out USD?  How do I withdraw USD from a decentralized exchange to my bank?  Who is sending the wire exactly?

There is no decentralized way to handle USD.  It is that way by design.  If there was a way, then we wouldn't need Bitcoin in the first place.  

[Robertqueen2]

Yes I leant the lesson before Bitfinex get hacked , but sometimes you need to leave some money in exchanges , because some coins pump or dump suddenly , and the Bitcoin transaction needs short time to be completed , so you might lose some values in the meantime .

[Whosdaddy]

This is a pretty good statement. It is never smart to leave coins at any exchanges. At most, I keep my coins for only a day and that only happens if I forget to withdraw them. Even though I usually do trading, I do not really keep a big amount of coins in any exchangers.

[BitHodler]

People will never learn from exchanges going down due to hacks or insider jobs.

They are either too lazy to request a withdrawal to get their coins back, or they seriously believe leaving coins on an exchange is a good way to store coins. I don't know which of the two options is worse.

We are looking for secure places to store our fiat money, but when it comes to Bitcoin certain people are completely different. Weird.

[xdrpx]

Yes, it's happened far too many times now that we've to realize that keeping our funds in an exchange isn't a good idea. No matter what, once your trade is complete make sure that your funds are transferred to your personal offline wallet or cold storage. Never trust online exchanges with security.

[GreenBits]

people who too lazy to move their funds to their own wallet should be considered as lazy ass

How else are you going to exchange btc, if not on an exchange?

[LFC_Bitcoin]

Not enjoying reading some posters criticising & blaming Bitfinex users for losing their coins. Bitfinex are the ones to blame here.

How are people supposed to sell coins if they don't, at some point, have their coins on an exchange.

It's a shitty thing to happen & unfortunately people have got burnt. I wouldn't be surprised if it was an inside job tbh.

[dserrano5]

In the future, refuse exchanges that doesn't PROVE it has 95%+ customer funds in cold storage.

Well that sure is going to be tricky. As a service provider, you'd have to prove that the keys to the funds are not stored on any online system, however you can't prove that something is not happening.

It's called 3rd party audit.

That is only a proof if you trust the auditor. Granted, it's a step forward but still.

[ionomy]

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 ).

Muggings, armed robberies, phishing and even card cloning, go on all day every day in the 'normal' world, security only counts for as much effort you put into it.