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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

#121

Post by ReverseCold »

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.

NEM (the coin that was stolen) doesn't make any local wallet user download the chain. Instead, it uses a client server model.

https://nem.io/

As such, the wallet is super lightweight and easy for an average user.

Doesn't protect you from exchange hacks though.

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

#122

Post by cal5k »

ReverseCold wrote: post #91
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.

Well, technically only their altcoins were kept in a hot wallet - still, unbelievable incompetence. This is where regulation is sorely needed.

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

#123

Post by blueline »

ssijak wrote: post #51
buttcoinslol wrote: post #6

Earlier quoted context omitted.

'Money ain't got no owners, only spenders' -Omar Little This quote applies to unregulated markets: drugs or cryptocurrencies.

I just finished watching all The Wire seasons for the first time and freaked a little when I saw your comment. I often see something on Hacker News that I just recently had contact with and is not that popular.

the wire had something like 30M viewers at peak and was absurdly well received....

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

#125

Post by onewhonknocks »

ReverseCold wrote: post #109
onewhonknocks wrote: post #97

Earlier quoted context omitted.

'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.

Sorry, I'll clarify. I'm in the chat group quite a bit and have contributed to the wallet source code. I said partially as I'm not involved as an "official" capacity.

Thank you for responding!

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

#126

Post by vkou »

DSingularity wrote: post #34
bkolobara wrote: post #30

Earlier quoted context omitted.

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.

Exactly. And the top notch exchanges keep everything in cold storage AND they take out massive insurance policies on it. Keep coins there unless we are talking millions of $ worth.

No exchange has a full insurance on their cold storage. Not a single one.

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

#127

Post by larkeith »

wrboyce wrote: post #104
lawlessone wrote: post #77

Earlier quoted context omitted.

Lol, hope it isn't made using Solidity

Care to elaborate on these hopes? And the underlying humour…

There's a lot of sentiment against Solidity as a language, for fairly good reason. See:

https://news.ycombinator.com/item?id=14810008 https://news.ycombinator.com/item?id=14691212

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

#128

Post by krapp »

cal5k wrote: post #122
ReverseCold wrote: post #91

Earlier quoted context omitted.

This seems to be exchange incompetence, their only wallet as a hot wallet. Disclaimer: I hold some XEM, have contributed to source, etc.

Well, technically only their altcoins were kept in a hot wallet - still, unbelievable incompetence. This is where regulation is sorely needed.

> This is where regulation is sorely needed.

The need for financial regulation and trusted authority is supposed to be the problem cryptocurrencies exist to solve - free market forces and reputation alone should be sufficient.

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

#129

Post by ReverseCold »

larkeith wrote: post #110
ReverseCold wrote: post #64

Earlier quoted context omitted.

The accounts on the NEM network (XEM was stolen, not Bitcoin) can be marked with a non-transferable asset. That was just automated and all known hacker addresses are now tainted.

Interesting - I'm unfamiliar with XEM, I presume the non-transferable mosaic (that were used to mark the accounts to which the stolen funds were transferred) is signed in some manner such that a copy couldn't be spoofed onto an arbitrary account?

Mosaics are a core feature of the platform. Think of it like an ERC20 token, but the creator of the token can impose fees (among other features). The fees are set to another token that the hacker doesn't/can't own - as such the account is stuck owning the asset.

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

#130

Post by csomar »

ReverseCold wrote: post #70
LAMike wrote: post #57

The 0x protocol will allow for decentralized exchanges, so hacks like this would be a thing of the past if it gains adoption. https://0xproject.com/

It's still impossible to have a decentralized exchange convert between USD and a coin. XEM (the coin that was stolen) doesn't have plans to implement 0x, but there are other plans for decentralized exchange.

Why not? By using a usd-token like usdt it become possible. Bitshare usd also has been very stable lately and it is fully decentralized.
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