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Exmo Bitcoin exchange chief executive kidnapped in Kiev

bbc.com

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Re: Exmo Bitcoin exchange chief executive kidnapped in Kiev

#21

Post by derefr »

logfromblammo wrote: post #4

Mathematical basis for Bitcoin still compromised by "rubber hose" cryptanalysis. Let this be a reminder that physical security is a necessary precursor to computer security. And I also hope that Exmo's succession plan executor takes the precaution of staying up late tonight to move all their reserves to new wallets.

The mathematical basis for multisig wallets is explicitly resistant to rubber-hose cryptanalysis, if the keys are distributed sensibly (e.g. with one going off to a counter party in a different political regime who can’t be compelled by the same state-actors as you to share keys.)

Re: Exmo Bitcoin exchange chief executive kidnapped in Kiev

#22

Post by petre »

DennisP wrote: post #9
logfromblammo wrote: post #4

Mathematical basis for Bitcoin still compromised by "rubber hose" cryptanalysis. Let this be a reminder that physical security is a necessary precursor to computer security. And I also hope that Exmo's succession plan executor takes the precaution of staying up late tonight to move all their reserves to new wallets.

Exactly. For large amounts, keep the hardware wallet in a safe deposit box, not in your house.

A safe deposit box in Ukraine? You have to be kidding me. We are talking about a country where corruption is rife, at war with its separatist regions.

Re: Exmo Bitcoin exchange chief executive kidnapped in Kiev

#23

Post by ImSkeptical »

ringaroundthetx wrote: post #17
ImSkeptical wrote: post #5

Earlier quoted context omitted.

That will be a brutal task, knowing that doing it ensures your colleague will get tortured and be unable to stop the torture by giving up the bitcoins. Still, probably for the best.

Yeah hopefully assailants will also be educated in the futility of their actions If the whole idea of a kneecap-breaking plot fails because transferring the funds requires multiple signers then they arent going to break kneecaps

Agreed, it would still be a tough task to complete.

Re: Exmo Bitcoin exchange chief executive kidnapped in Kiev

#24

Post by aviv »

I raised this concern in a comment last week. We are going to see more instances of this. Remember how in the movies they break into a bank manager's house and hold the family captive while someone goes with the manager to open the bank vault?

Same thing is inevitably going to happen IRL. I always say exchangers are Bitcoins weakest link. All it takes is one compromised employee at Coinbase or another large exchanger (intentional or some kidnapping scenario) for the price to come crashing due to the damage they can be forced to do.

Never ever keep your coins on an exchange wallet. Never.

Re: Exmo Bitcoin exchange chief executive kidnapped in Kiev

#25

Post by busterarm »

aviv wrote: post #24

I raised this concern in a comment last week. We are going to see more instances of this. Remember how in the movies they break into a bank manager's house and hold the family captive while someone goes with the manager to open the bank vault? Same thing is inevitably going to happen IRL. I always say exchangers are Bitcoins weakest link. All it takes is one compromised employee at Coinbase or another large exchanger…

How many of these kidnappings are going to be faked to provide cover for a theft?

It's exactly the thing I would do.

Re: Exmo Bitcoin exchange chief executive kidnapped in Kiev

#26

Post by smokeyj »

aviv wrote: post #24

I raised this concern in a comment last week. We are going to see more instances of this. Remember how in the movies they break into a bank manager's house and hold the family captive while someone goes with the manager to open the bank vault? Same thing is inevitably going to happen IRL. I always say exchangers are Bitcoins weakest link. All it takes is one compromised employee at Coinbase or another large exchanger…

Multi signature wallets are easy enough to use. You’re going to need a lot more rubber hoses.

Re: Exmo Bitcoin exchange chief executive kidnapped in Kiev

#27

Post by jameslk »

So it appears criminals are getting wiser and a new wave of home and personal robberies may emerge. Will this push crypto owners to entrust their currency with more secure institutions, leading to these "decentralized" currencies to be once again under control and manipulated by banks and governments?

Re: Exmo Bitcoin exchange chief executive kidnapped in Kiev

#28

Post by tptacek »

jameslk wrote: post #27

So it appears criminals are getting wiser and a new wave of home and personal robberies may emerge. Will this push crypto owners to entrust their currency with more secure institutions, leading to these "decentralized" currencies to be once again under control and manipulated by banks and governments?

Yes? I mean, that's happening even without lurid kidnappings.

Re: Exmo Bitcoin exchange chief executive kidnapped in Kiev

#29

Post by DennisP »

Klathmon wrote: post #10
DennisP wrote: post #9

Earlier quoted context omitted.

Exactly. For large amounts, keep the hardware wallet in a safe deposit box, not in your house.

Or you can use the strengths of cryptocurrency and split a key between a safe deposit box, your home, and yourself, and require 2 of 3 of them to get the original key.

That definitely helps against many scenarios, but "home and yourself" means you're still in immediate control of funds while you're at home, so you're still vulnerable to armed robbery. You want to make it so your answer to the robber is "I can't, the bank's not open."

Re: Exmo Bitcoin exchange chief executive kidnapped in Kiev

#30

Post by cm2187 »

aviv wrote: post #24

I raised this concern in a comment last week. We are going to see more instances of this. Remember how in the movies they break into a bank manager's house and hold the family captive while someone goes with the manager to open the bank vault? Same thing is inevitably going to happen IRL. I always say exchangers are Bitcoins weakest link. All it takes is one compromised employee at Coinbase or another large exchanger…

There is only so much a bunch of criminals can take out of a bank's local branch. But for a bitcoin exchange, they could in theory take the whole thing, including client's funds if they share the exchange's public wallet. If you think about it, it can be a $100m+ robbery.
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