Bitcoin Hacks a double edged sword

[Woodie]

As much as the crypto ecosystem has experienced several hacks over the years which has seen millions of Bitcoins lost to this,  there is actually some good that comes from them besides losing of coins, for example

• they help to iron out flawed code from wallets etc
• keep developers on their toes to implement best security measures
• hacks expose industries that don't employ the right guy for the job as these self taught  nerds think they are fit for the job
• hacks expose lack of specialisation
• hacks expose the lack of seperation of power which is why multisig wallets have the go to wallets today

With hacks exposing some of the greed that comes from not employing the right guy for the job, or CEO's giving themselves so much power such as full access to crypto wallets is the  among the reasons millions of Bitcoins & alts have been lost, so is going back to the basics of running a company suppose to be applied to Bitcoin/crypto companies??

Share your opinions what do you guys think for Bitcoin/crypto run companies and the security landscape..

[1714702524]

1714702524

[DaveF]

Minor point but it's not Bitcoin being hacked it's BUSINESSES that deal with Bitcoin being hacked.

When T-Mobile got hacked there was no talk of the cellular network being hacked.
When Capital One was hacked there was no talk of the US Dollar getting hacked.

And so on.

It's Bitcoin related businesses getting hacked.
And it's going to keep happening until they cannot get investors to back them and regulators to accept their operation unless they can prove certain security safeguards are in place.

It's really not that much of a double edged sword since we have seen time and time again that people keep putting funds into places that are obviously scams / frauds so having places get hacked is just another thing that people (users) are going to keep ignoring when it happens.

Sad that nobody cares, but outside of the people here on the forums and a few other technical discussions nobody seems to care that it keeps happening.

-Dave

[hugeblack]

As much as the crypto ecosystem has experienced several hacks over the years which has seen millions of Bitcoins lost to this,  there is actually some good that comes from them besides losing of coins,

The term crypto ecosystem is supposed to mean the crypto ecosystem related to these currencies and not the economic activities associated with Bitcoin. During the past years, and other than Libbitcoin Explorer (bx) are insecure^[1], we have not heard attacks or problems related to the crypto architecture associated with Bitcoin or even cryptocurrencies.
What is happening is with software and economic activities related to Bitcoin, from wallets to exchanges to bridges and others.

Share your opinions what do you guys think for Bitcoin/crypto run companies and the security landscape..

All the mistakes I mentioned are related to central platforms and tips such as:

 - Do not trust centralized platforms or withdraw your funds immediately after trading.
 - Use decentralized platforms.
 - Use multi-signature wallets so that if there is a problem with one of them, you will have the opportunity to transfer your funds safely.


[1] [WARNING] Wallets created with Libbitcoin Explorer (bx) are insecure!

[JunaidAzizi]

Share your opinions what do you guys think for Bitcoin/crypto run companies and the security landscape..

The scam has always had a negative impact on us and on society also but you change it to the positive that how scam help us. If one has a pretty good mind he can easily understand what are the weaknesses that success the scam.  Many people are in companies or exchange when they are scammed they goes into depression some want to take their own life and some are mads because they lost a big amount but no one can think about why they were hacked and what the thing that facilitated the hackers or scammers. If they don’t fix this weakness then maybe in the future there is a chance of hacking it again. So for better security, it is necessary to look at the things that you mentioned in your post so that in the future they will be saved and millions of bitcoins will be protected from stolen or from wastage.

[digaran]

Maybe we should ask these "hackers" to start their own services and earn honestly, because it seems they are more competent than all those hacked services combined.
Then we would have saved criminals from the pit, and also have the safest services to rely on.😂


I mean come on, why would people trust their money with anonymous third parties? Since when banks lost their credibility at holding our funds safe? If anyone wants to give his bitcoins to strangers on the world wide web, better quit bitcoin and go back to the old ways, at least they won't lose their money individually, instead central banks make more money with their funds and then would fund military budgets to make more weapons and kill us in bulk, that way we all go down together, not individually.

[Upgrade00]

As much as the crypto ecosystem has experienced several hacks over the years which has seen millions of Bitcoins lost to this,  there is actually some good that comes from them besides losing of coins,

Your topic title is wrong. There has been no hack on the Bitcoin network since the first year it was launched, what happens is people store there bitcoins in different platforms, closed source wallets, exchanges, etc and this gets hacked causing loss of the bitcoins.
This is not a problem in the Bitcoin network.

You as the user just has to keep your Bitcoin in your custody and make your security your own priority.

[suzanne5223]

As much as the crypto ecosystem has experienced several hacks over the years which has seen millions of Bitcoins lost to this,  there is actually some good that comes from them besides losing of coins, for example

Firstly, the Bitcoin network was not hacked but the hack was mostly about DeFi, wallet, and project. However, among the 95% of the hack the crypto that was lost was not BTC.

• they help to iron out flawed code from wallets etc
• keep developers on their toes to implement best security measures
• hacks expose industries that don't employ the right guy for the job as these self taught  nerds think they are fit for the job
• hacks expose lack of specialisation
• hacks expose the lack of seperation of power which is why multisig wallets have the go to wallets today

The hack does expose some of the flaws you listed which is always the good thing about the hack incidents we see in the market but we have a situation where the dev still doesn't have much of a security upgrade and their platform was hacked twice.
Until the dev team understands that hackers see their activities as a hobby and until the dev understands and always thinks like an attacker their platform won't be secure.

[franky1]

just a note..
majority of exchange hacks of bitcoin history seemed to not actually be hacks.. but internal theft in lieu of retiring out of the business

even FTX guy SBF tried to claim a hack for losses but evidence shows he was shuffling funds about to remove it for personal purchases.

other examples of the past seemed similar mintpal cryptorush, and so many others

[BitcoinPanther]

One thing is certain when a company is hacked, the client suffers.  It is not a double edge sword, it is clear as water that hacks only brings sufferings due to capital stolen by these hackers.  There is no need to get hacked and fund stolen if one needs to improve technology, personnel and other things, developers can hire tech people to test their code for glitches, why wait for the fund to get stolen through hacking.  This simply means that the people who are in-charge of security is lacking.

Btw, I agree with the earlier replies that hack is not on the Bitcoin network but rather to the companies that lapse on security or an internal theft to exit scam.  Bitcoin network after its early days exploit/hack  have never been hacked again. 

[taufik123]

just a note..
majority of exchange hacks of bitcoin history seemed to not actually be hacks.. but internal theft in lieu of retiring out of the business

even FTX guy SBF tried to claim a hack for losses but evidence shows he was shuffling funds about to remove it for personal purchases.

other examples of the past seemed similar mintpal cryptorush, and so many others

An orchestrated internal theft to drain users of all their money or use it as they please.
It all seemed very nefarious, but in the end, all the drama unfolded.

But SBF did file a Motion to Dismiss the Prosecution's Charges.
The three charges excluded from this motion were
1. commodity fraud,
2. conspiracy to commit securities fraud,
3. and conspiracy to commit money laundering.

Already guilty but still denies committing fraud.

Another example is also like the local Turkish Exchange, Thodex, which cannot be accessed because its CEO, Faruk Fatih Ozer, took away around $2 Billion of user money.

In addition to cases of developers running away with user funds, there are also exchanges that are closed because they no longer have benefits if they continue to operate such as locakbitcoin, Nova Exchange, Coinexchange, and many more.

But in the end what about user data that has done KYC, will it be safe?
Because it is clear that even though the exchange is closed they still hold the KYC data of all users and can be sold to get more profit.

[hatshepsut93]

• they help to iron out flawed code from wallets etc
• keep developers on their toes to implement best security measures
• hacks expose industries that don't employ the right guy for the job as these self taught  nerds think they are fit for the job
• hacks expose lack of specialisation
• hacks expose the lack of seperation of power which is why multisig wallets have the go to wallets today

All these argument are in fact just one argument that hacks expose weak security. And this is a circular argument because that security only matters for Bitcoin anyway, so what does this change and who cares? Certainly not the people who lost their money to hacks. They won't see any silver lining in the fact that a security weakness got exposed.

If I wanted to see a bright side, I would say that hacks showcase the weakness of centralized systems and should push the community towards full decentralization of not just Bitcoin but its whole ecosystem too.

[joniboini]

so is going back to the basics of running a company suppose to be applied to Bitcoin/crypto companies??

I'm not even sure what basic we can refer to. If we're talking about security, some businesses also practice terrible security outside of crypto. Not saying we should compare them and say which one is better though, since both of them are wrong.

I guess we can say that with crypto business abuse is easier compared to traditional business since the owner can own multiple keys. Then again it can be prevented if the company is smart. At the end of the day, it depends on the intent of the owner itself whether they want to run an honest business or just a scam, plus whether they can provide transparency or not.

I do believe that the market will eventually become mature and customers become smart enough to manage their risk properly.

[OcTradism]

As much as the crypto ecosystem has experienced several hacks over the years which has seen millions of Bitcoins lost to this

Most of biggest hacks in cryptocurrency history is from centralized exchanges years ago. Recent years, it is more popularly with decentralized exchanges and cryptocurrency bridges but they are not too much related to Bitcoin directly.

Wrapped Bitcoin (tokens) are not real bitcoins, they are tokens with 1:1 peg with Bitcoin in theory.

Cryptocurrency exchange hacks
Hacked exchanges since 2011

People lost their bitcoins mostly because they stored their coins on centralized exchanges, not in their non custodial wallets. I know there are wallet hacks but I believe the severity is less than hacks on centralized exchanges or scam exchanges.

Reminder: do not keep your money in online accounts

[Blitzboy]

You make good points. It's funny, but in a weird logic, I almost feel like these attacks act as a kind of "quality control" for the crypto ecosystem. By exposing flaws, they force developers to step up their game.  "What doesn't kill you, makes you stronger," really applies. Despite their discomfort, many attacks have improved system security. However, I agree that humans often cause problems. When you give someone too much power and trust, things might go wrong.

Bitcoin and crypto enterprises can benefit from tried-and-true business practises, especially in checks and balances. Well, why not? A practise that has worked for decades for traditional businesses may work for crypto enterprises. However, what if these traditional practises stifle crypto's decentralisation and essence?

[adaseb]

These days most of the new projects have bug bounties for bugs found in code. You can discover some horrible bug which could cause loss of funds and they credit you 10% of the potential amount that could of been stolen.

Many defi projects were drained in the past and for some the hacker returned 90% and was allowed to keep 10% as a bounty fee. Better getting 10% than having to worry about cashing out the funds.