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Author Topic: is Bitfinex still trusted?  (Read 3159 times)
ETCethereum
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February 23, 2017, 03:00:04 AM
 #61

To answer the original poster's question:

1. Clearly as a matter of fact, yes:

a. Bitfinex currently commands between 30% and 50% (varying from day to day) of the entire USD/BTC exchange market. A large number  of traders clearly trust the exchange. The exchange is highly profitable and its USD/BTC book is the deepest there is.

b. Customers (includiing me) who were hacked have since exchanged tokens for US$ 50 million equity in the company. Again this suggests a high degree of confidence.

2. As regards their current levels of security, the hack was achieved by exploiting a vulnerability in Bitgo which (not surprisingly) Bitfinex no longer use.

3. More broadly, you can take two views. One is that if an exchange has been hacked then that shows its security is poor and so it should never be trusted again. The other view is that a hacked exchange is likely to take every possible step to ensure that nothing like it ever happens again.  I take the second view, but both views are legitimate.

4. Given the scale of the hack, losses to customers were minimal. The original haircut was 37% but BFX tokens are now trading at almost 85 cents in the dollar so the net loss at current figures is 0.15 x 37% = ~ 5% which seems likely to fall to zero before the end of the year.

5. Personal/contact details and information are available for all key personnel. I find that reassuring and quite unusual in this industry.

Just my thoughts.


deposit and withdraw in bitfinex normal or not
how long proces withdraw in there
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February 23, 2017, 08:23:22 AM
 #62

3. More broadly, you can take two views. One is that if an exchange has been hacked then that shows its security is poor and so it should never be trusted again. The other view is that a hacked exchange is likely to take every possible step to ensure that nothing like it ever happens again.  I take the second view, but both views are legitimate

I would like to address this point of yours specifically

Theoretically, we can talk about these two approaches, though on a pure theoretical basis the first approach (i.e. never trusting a hacked exchange again) is certainly a preferable mode of action unless (and this is a crucial point here) you have additional info which could change your stance. In practice, the choice obviously depends on whether a hacked exchange did really improve their security policies, but without relevant knowledge staying away should be preferred. For example, Bter had been hacked twice within a year (or even within half a year), so trading there is likely an exercise in a sort of masochism

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February 27, 2017, 12:30:10 PM
 #63

Absolutely no! You can compare price per point rates with other exchanges and see difference.Huge spreads,comissions etc

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September 06, 2017, 09:49:37 PM
 #64

Follow the hacked coins: https://blockchain.info/address/3D2oetdNuZUqQHPJmcMDDHYoqkyNVsFk9r
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September 07, 2017, 01:10:13 AM
 #65

That is actually the current cold storage address for bitfinex. It is not the stolen/hacked coins.

edit: I just checked, and the last time any of the stolen coins moved out of the addresses they were sent to in the August hack was in March of this year.
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