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FTX faces potential hack, sees mysterious outflows totaling more than $600M

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Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#171

Post by threeseed »

paxys wrote: post #149
AustinDev wrote: post #137

Earlier quoted context omitted.

If he is in fact on the run... Does this dude really think the CIA and FBI won't find him? He's likely not safe anywhere but Russia, China, North Korea or Israel.... maybe Pakistan.

Why would the CIA and FBI care? It's not like they are going to send Navy SEALs after him. This is a DoJ matter, and the most they will do is file extradition requests. If the country he is in decides to ignore them, well that's about it.

They wouldn't care. At this point crypto is simply a form of gambling.

And the people being hurt are more than educated about the risks they take.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#172

Post by [deleted] »

zeven7 wrote: post #4

> Investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges - unclear facts as other movements not clear. Will share more info as soon as we have it. From FTX's general counsel[1], retweeted by FTX_Official. So that indicates it's not being sold off legitimately under some sort of liquidation proceedings. It could be insiders or it could be hackers. [1] https://twitte…

[deleted]

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#173

Post by YossarianFrPrez »

douglaswlance wrote: post #133
YossarianFrPrez wrote: post #116

Regardless of whether you are pro- or anti- crypto, the collapse of FTX, SBF's bubble bursting in a rather extreme fashion, and now this hack are more nails in the coffin for mainstream support. I am no fan of crypto myself, but it's interesting to think what would have to happen for crypto to burnish its image. Would key people have to voluntarily form some sort of coordinating council and self-regulate? Would they…

This isn't a crypto failure. Crypto works. This is a human failure. FTX didn't collapse because of the technology. It collapsed because of human error. The fix is rather simple. If an organization looks like a bank and quacks like a bank; it should be regulated like a bank.

I agree that the algorithms powering crypto are sophisticated pieces of technology. Just look at the zero-knowledge proofs.

The thing is that "not being regulated like a bank" is exactly what many people like / liked about it. (Yield farming, using DeFi for mortgages, etc.)

What I'm saying is that Crypto seems to be headed to being taught alongside, if not the Therac-25, then the Mars Climate Orbiter (which was lost to some people working in metric vs standard.)

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#174

Post by anonymoushn »

sam345 wrote: post #35
mudrockbestgirl wrote: post #15

Earlier quoted context omitted.

FTX is a centralized entity, just like PayPal is. There is no such difference. As a centralized company, they are supposed to hold all customer funds in their own bank/wallet/whatever account(s).

iait may be centralized but there's no comparison to PayPal. PayPal does not commingle funds

Paypal keeps separate bank accounts for each customer?

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#175

Post by notch656a »

the-anarchist wrote: post #150
bsder wrote: post #125

Earlier quoted context omitted.

The difference is that when a bank gets robbed, I can still go get my money back via the legal system. When a crypto exchange or a crypto wallet gets robbed, you have nowhere to go to get your money back. There are good reasons why we don't keep large amounts of cash in our pockets or in our mattresses.

Good luck getting your money through the legal system when the bank collapsed!

FDIC. Everyone else pays for your shitty banking choices via inflation instead.

To me the crypto version is better TBH, which would force either private insurance or none at all. Believe it or not you can buy private insurance for crypto, which would achieve something like FDIC.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#176

Post by manholio »

Gatsky wrote: post #23

If this is real, most likely an inside job. I mean FTX staff probably had a lot of their own crypto on the exchange, so now that it appears Bankman stole it from them, why not steal it back.

This sounds like a great insider action to cover the fraud and mismanagement: leak the keys to the kingdom in a dark web forum, so that in the resulting commotion you can blame the hackers who had access all along and obviously made your platform fail. Something, anything that your lawyers can grasp at.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#177

Post by quantified »

mrich wrote: post #95
rocket_surgeron wrote: post #79

Every time one of these cryptoscams matures I curse my rotten, stupid, brain. If I was smart, I too would be ripping off all of the cryptobros. Instead I dumb and do honest work.

People will be going to jail for this. Do not take the short term view.

Let's keep out eyes on this. It is a super lurid scenario (to use a word introduced by @dang on this posting).

By "this" I don't mean the earlier bits of the FTX debacle, but specifically this draining event. The statement that "FTX apps are malware" is weird in that it implies they became malware a while back. I could see either hackers penetrating due to inadequate security, or insiders setting up for an opportune time. Until the crypto is tumbled, it will be possible to trace its movements. Perhaps it'll just get frozen somewhere to keep it inaccessible by FTX interests. Let's see how long it takes to determine and locate any suspects for this. I have no guess aa to that, but watching with interest.

Who says the Binance app won't turn into a threat at some point?

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#179

Post by xisthesqrtof9 »

rocket_surgeron wrote: post #79

Every time one of these cryptoscams matures I curse my rotten, stupid, brain. If I was smart, I too would be ripping off all of the cryptobros. Instead I dumb and do honest work.

Create products, real value and make money.

At least that’s how I think of it, speculation creates nothing new. Instead it depletes resources that could have otherwise been used on something more meaningful.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#180

Post by AustinDev »

ajb wrote: post #168
AustinDev wrote: post #137

Earlier quoted context omitted.

If he is in fact on the run... Does this dude really think the CIA and FBI won't find him? He's likely not safe anywhere but Russia, China, North Korea or Israel.... maybe Pakistan.

No, not safe in Russia. From https://mobile.twitter.com/kamilkazani/status/15791389474472... "In contrast, Russian cryptobros that I know tend to act very, very lowkey. The fewer people know about your activities, the better. Posting about dealing with crypto in social media is absolutely unthinkable. Why? Because that makes you too easy and lucrative prey" That thread describes how a basement was found, in the house…

Well then, he's only got 3 to 4 other options. I'm particularly displeased by this situation. I got Gox'd thrice over. It hasn't happened in 8 years, so I'm not effected in this instance. However, I am just rather unhappy that it is still happening to folks.
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