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

coindesk.com

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

#241

Post by px43 »

headsoup wrote: post #41

What I don't get (well I do, lobbying and inside deals), is why these guys have run so long (especially Tether). Just because crypto is a 'decentralised' wild west opposed to government shouldn't mean they sit outside of the laws around fraud, laundering and deception, especially if they're registered companies. The lack of legal focus, given the obvious illegitimacy of it all is disgraceful and I can't even imagine…

FTX was able to fleece Wall Street investors specifically because of their deep Wall Street connections. This is a corrupt Wall Street story. The only reason they were exposed is because they left evidence on-chain, and people started asking questions. There are very few people who have been in the cryptocurrency space for more than 5 years that had any sort of trust in FTX.

https://twitter.com/concodanomics/status/1591232063906217984

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

#242

Post by yalogin »

This whole saga has done irreparable damage to crypto. It will take a lot of time for it to come out of this hole. When there is money involved, and that too this much, there will be conspiracy theories flying around and the regular retail investor will be tough to win back. It will be very interesting to see what happens from here on out. Crypto doesn’t have any uses to begin with, if it’s purely used as pump and dump schemes why bother?

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

#243

Post by zone411 »

bmitc wrote: post #228
zone411 wrote: post #222

Earlier quoted context omitted.

How do you know it's him and not somebody else with the same name? I don't see any crypto projects.

> I don't see any crypto projects. How do you know that? It says explicitly: "52 contributions in private repositories" between November 1 and November 11.

Obviously nobody knows what the private repos are. I was talking about public projects. "Gary Wang" is not an uncommon name. For example, here is another one with a Wikipedia page https://en.wikipedia.org/wiki/Gary_Wang

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

#244

Post by hestefisk »

foogazi wrote: post #148
douglaswlance wrote: post #133

Earlier quoted context omitted.

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.

> This is a human failure Is there any crypto out there without humans ? Is there an undo button to reverse the transaction? All financial systems involve humans

Spot on. Money is a social construct after all and thus subject to human fallacy.

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

#245

Post by dna_polymerase »

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…

Yeah and I’m sure the Apple App Store review process won’t catch the steal_private_keys_and_upload_to_china() method they inserted. Not that iPhone apps can’t do this in the first place. A lot of FUD right now to create even more chaos.

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

#247

Post by rlt »

echelon wrote: post #112
headsoup wrote: post #41

What I don't get (well I do, lobbying and inside deals), is why these guys have run so long (especially Tether). Just because crypto is a 'decentralised' wild west opposed to government shouldn't mean they sit outside of the laws around fraud, laundering and deception, especially if they're registered companies. The lack of legal focus, given the obvious illegitimacy of it all is disgraceful and I can't even imagine…

> Just because crypto is a 'decentralised' wild west opposed to government shouldn't mean they sit outside of the laws around fraud, laundering and deception, especially if they're registered companies. Entirely speculation, but something fun I've heard repeated occasionally: If this was "just tech", it could find itself regulated easily. (Though this isn't necessarily the case.) If it's a geopolitical weapon or spy…

Alternatively, governments knew FTX was a fraud and let it happen to weaken peoples’ faith in crypto.

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

#248

Post by Thorrez »

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.

If a bank gets hacked, generally the transactions get reversed. If a cryptocurrency exchange gets hacked, that generally can't be reversed.

Regulation can make things more secure, but I don't think it can realistically stop all attacks. Regulation is slower than attackers. The ability to reverse transactions is what's really needed to prevent attackers from getting away with money.

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

#249

Post by gizmo385 »

nightski wrote: post #186
bellBivDinesh wrote: post #169

Earlier quoted context omitted.

The problem is the crypto community’s skepticism of proven financial safeguards. Large financial systems are centralized for a reason and they seem intent on finding out why by hitting every bump in the road at full speed.

What's amusing about your comment is that exchanges are the one centralized part of crypto due to the interfce with fiat and they also tend to be where all of the fraud occurs.

> due to the interfce with fiat and they also tend to be where all of the fraud occurs.

Yes, because that's where the actual value is at the end of the day. Regardless of how much people want to pump crypto, when push comes to shove, the recognized value of crypto for the vast majority of people is it's conversation rate to fiat currencies.

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

#250

Post by cuteboy19 »

jl2718 wrote: post #224
AndreLock wrote: post #66

This is absolutely wild and unprecedented. Imagine being a victim of Madoff's ponzi and - after already being traumatized by the unveiling of the fraud - discovering that the rest of the money had been stolen. Madoff's ponzi was larger, but the recovery rate was 88%. It looks like customers who didn't withdraw in time will end up with 0%.

So, did Madoff's victims just end up with normal returns like they would have gotten any other way?

The ended up with 0.9x their original capital
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