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Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

reuters.com

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Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#91

Post by ReverseCold »

larkeith wrote: post #88

Bitcoin and other cryptocurrencies remain in technological infancy relative to the absurd amount of investor interest they hold. Hacks of this scale will likely continue to occur for the forseeable future, until exchanges develop and deploy techniques to limit potential lossage to hacks (e.g. minimal networked wallets), and will require several more years to provide a secure track record. In the interim, the convenie…

This seems to be exchange incompetence, their only wallet as a hot wallet.

Disclaimer: I hold some XEM, have contributed to source, etc.

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#92

Post by larkeith »

ReverseCold wrote: post #79
cal5k wrote: post #58

Earlier quoted context omitted.

Interesting. So is the implication here that it was probably an "inside job"? Were the private keys held in cold storage?

From the coincheck press conference, no, the only private key was "hot".

Christ.

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#93

Post by tomc1985 »

staplers wrote: post #80
tomc1985 wrote: post #67

Earlier quoted context omitted.

I would have had Bitcoin at a much more opportune time if I could have gotten Armory to work. The idea that one must download the entire blockchain makes maintaining a wallet very difficult for some, esp. if the wallet software doesn't accept the data at the end of the dozens+GB download.

The idea that one must download the entire blockchain makes maintaining a wallet very difficult Totally false. There are plenty of wallets that allow you to connect to a decentralized network of servers hosting the blockchain. Electrum, Multibit to name a few.

maybe, but I don't recall encountering any of these years ago

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#94

Post by buttcoinslol »

m3kw9 wrote: post #50

A lot of people take for granted of a bank guarantees from govt. In a bank you are protected if the bank burns down or gets robbed empty. Unlike the Wild West here

For US accounts, you even get 500k of coverage thru SIPC in case your brokerage goes bankrupt. You don't even need to be a US resident for this protection.

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#95

Post by cal5k »

UncleMeat wrote: post #84
cal5k wrote: post #46

Earlier quoted context omitted.

Yes... all of the addresses involved should be known and can be blacklisted by major exchanges. Still - the question is why was it even possible for a "hack" to score so much cryptocurrency? This is a legendary score on par with Mt Gox... they should be holding all currency not required for immediate trading liquidity in cold storage and rebalancing as needed.

Uh. Wasn't the whole goddamn point of blockchains "censorship resistance"? Now people are saying that we can just ban transactions from certain addresses?

You can't ban them, but you could put together a "blacklist" on tokens from a particular origin that exchanges could agree to honour. It wouldn't stop anyone from trying to sell their coins in other ways.

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#96

Post by cal5k »

ReverseCold wrote: post #79
cal5k wrote: post #58

Earlier quoted context omitted.

Interesting. So is the implication here that it was probably an "inside job"? Were the private keys held in cold storage?

From the coincheck press conference, no, the only private key was "hot".

That is unbelievably stupid.

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#97

Post by onewhonknocks »

ReverseCold wrote: post #90

Posting this as a top level comment as well (probably a better idea): The coins stolen are XEM ( https://nem.io/ ) not Bitcoin. They're currently tracking the stolen coins to ensure they are not sold. Preliminary evidence suggests that it was a private key stolen and not a network problem. Disclaimer: Am somewhat associated with the team, and I hold a small amount of XEM. Feel free to ask questions.

'Am somewhat associated with the team'

Can you please be more specific? It was almost not worth saying unless you'll be more specific IMHO.

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#98

Post by lowdest »

rhapsodic wrote: post #18
tn_ wrote: post #2

I don't understand why news like this doesn't have that huge of an impact of bitcoin's price.. Bitcoin seems to be hovering around 11k~ as I'm writing this. It's been at the same price it seems for the past couple of days...

> I don't understand why news like this doesn't have that huge of an impact of bitcoin's price.. Bitcoin seems to be hovering around 11k~ as I'm writing this. It's been at the same price it seems for the past couple of days... Personally, I would like to understand what it really means to say "the current price of BTC is ___." It's not like stocks where you can see actual bid/ask and daily volume numbers. And since t…

>And since transaction costs and times make arbitrage impractical

This can be mitigated. Exchanging to a less congested coin can be done quickly for fast, low-cost transfers. Keeping a buffer at each exchange will lower overall rate of return but also reduce the frequency of transfers required.

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#99

Post by emiliobumachar »

bkolobara wrote: post #30
gesman wrote: post #3

Conclusion: If you keep any cryptocurrency on an exchange or online service that can or is capable of controlling your private keys - MOVE all your cryptos to your own deterministic wallet YESTERDAY!

The possibility of an exchange getting hacked is much lower than the possibility of users losing founds by transferring them to their own wallet. I run a cryptocurrency forum and in 99% of reported cases users lost their founds by moving money from an exchange to a local wallet or even a hardware wallet. I always recommend everyone to keep it on an exchange.

There may be reporting bias going on. I suspect a high percentage of people who lose BTC by themselves will report it in a forum, since, as far as they know, their case might have unique details in which a more knowledgeable person might find a solution. But a low percentage of people who lose BTC due to an exchange hacked will report it, since the information they need is already in news and blog posts all over the web.

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#100

Post by antocv »

m3kw9 wrote: post #50

A lot of people take for granted of a bank guarantees from govt. In a bank you are protected if the bank burns down or gets robbed empty. Unlike the Wild West here

You are not protected when the bank robs you. Accounts frozen, inflation, using your money for dubious corruption and money laundering schemes - see Nordea.
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