Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

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

coindesk.com

Post reply on HN
Print view View original

301–310 of 890 posts

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

#301

Post by ajb »

notch656a wrote: post #221
ajb wrote: post #168

Earlier quoted context omitted.

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…

That post has zero evidence the fake prison is "specifically designed for the capture and torture of crypto owners." For all we know it was used to torture political enemies with maybe the odd crypto bro on the side.

The design elements are: 1) it is designed to look exactly like a prison, so the occupant thinks he will get out. Thus, it is designed for extortion. 2) a crematorium is provided, anticipating the requirement to be used many times in a similar way.

This doesn't fit the profile of political enemies very well. 1) political enemies commit political acts, which can be extorted but not normally after you are dead. Crypto still works after you are dead 2) each political enemy would stand in a slightly different relation or context to you, which suggests a bespoke approach not a system. Crypto owners can all be processed in the same way

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

#302

Post by capkutay »

bmitc wrote: post #226
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.

People keep saying this, but I don't follow. FTT was a token manufactured out of thin air. Crypto works as a concept, I suppose, but people saying crypto works is like the people that say Agile works. How long do we have to wait to see crypto working? Where are the success stories of crypto? There's a long laundry list of hacks, scams, company failures, "tokenomics", NFTs, on blockchain, etc. Saying crypto works as a…

FTX is a centralized (not DeFi) exchange that used their own coin as collateral and obfuscated their liquidity. This wouldn’t be possible in open decentralized exchanges that many in web3/crypto were advocating for. However SBF made it his mission to lobby regulation on DeFi and a blind eye to CeFi exchanges like his own.

https://www.politico.com/newsletters/morning-money/2022/10/2...

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

#303

Post by Ekaros »

throwawaysleep wrote: post #103

And the giant scam that is crypto marches on. I feel like such a schmuck for not working on ICOs when that’s as all going on. Was sure that this was all fraudulent, but you can walk off with a billion dollars now and nothing will happen.

Or get on early on some of this junk. But I back then didn't believe it would go up and still don't believe it to stay up or go up more...

Some many opportunities from pre-mined shit coins to ICOs and so on.

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

#304

Post by polygamous_bat »

junofan wrote: post #269
Thorrez wrote: post #240

Earlier quoted context omitted.

You're right that a lot of the risks are due to holding in a central website. But cryptocurrency in a central website is more risky than fiat in a central website, because if a central website gets hacked and the hackers steal fiat, generally those transactions will be reversed, whereas if the hackers steal cryptocurrency, generally those can't be reversed.

What do you mean by stealing fiat currency from a central website? How would a website custody fiat?

Paypal?

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

#305

Post by Thorrez »

junofan wrote: post #269
Thorrez wrote: post #240

Earlier quoted context omitted.

You're right that a lot of the risks are due to holding in a central website. But cryptocurrency in a central website is more risky than fiat in a central website, because if a central website gets hacked and the hackers steal fiat, generally those transactions will be reversed, whereas if the hackers steal cryptocurrency, generally those can't be reversed.

What do you mean by stealing fiat currency from a central website? How would a website custody fiat?

I do an electronic transfer from bank A to bank B. I have a balance in bank B. Bank B then gets hacked.

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

#306

Post by sillysaurusx »

rkagerer wrote: post #214
sillysaurusx wrote: post #184

Earlier quoted context omitted.

Can confirm. Lost 100% of my mtgox holdings in 2013. Theoretically my account balance is 7.73 BTC. I can still log in and see it. Maybe by the time I retire I’ll have recovered like 0.7 BTC. Which amusingly would be the sum of my original $11k investment. A lot of this is just gambling. People need to go into it with the mindset that the money will be gone tomorrow, and then be pleasantly surprised if it doesn’t. See…

If you've been keeping up with your claim filings you should get around 1.1 to 1.25 BTC (estimate from https://blog.wizsec.jp/2021/02/mtgox-claim-calculator.html?m... )

Thank you for the claim calculator! I spent like an hour trying to understand the calculations manually, but the ~7 pages of dense legalese was hard to decipher.

(I’ll believe it when the coin is in my wallet though. Till then, I mentally moved on a long time ago. It felt like the end of the world at the time, since it was my father’s savings that he’d worked for a decade to save up for his kid one day. Wiping it out over night wasn’t a good feeling, to say the least. But, life goes on, and I was fortunate it was only $11k. An expensive lesson, but one I needed to learn.)

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

#307

Post by 55555 »

bmitc wrote: post #296
smt88 wrote: post #32

There's no way this is a coincidence. This is undoubtedly people who work(ed) at the company and were trusted with private keys trying to get away with some money while they can.

What's weird is, why wasn't the system turned off? They've totally collapsed, filing bankruptcy, and supposedly aren't allowing withdrawals, so what was the point of leaving the system up and vulnerable?

They don't have the power to pause non-FTT blockchain systems. What you're suggesting isn't really possible. Someone has to hold the keys -- and I doubt they used sufficient multi-sig -- and anyone who has the keys can always move the funds.

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

#308

Post by paulpauper »

alasdair_ wrote: post #199
smt88 wrote: post #32

There's no way this is a coincidence. This is undoubtedly people who work(ed) at the company and were trusted with private keys trying to get away with some money while they can.

Agreed. It's by far the simplest answer. They already have the keys and have the code.

I don't think it was insider job. If insiders wanted to steal people's assets why do it in such a public manner? If they have the keys they can just move funds discretely from the larger pooled assets without draining individual accounts. A malicious app update draws way too much undue attention.

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

#309

Post by gasull »

iakh wrote: post #122
gasull wrote: post #102

To all the people replying that crypto isn't regulated: that's a myth. Exchanges are regulated and keep KYC info of their customers. If the FTX hack is true, then all that KYC info will be sold in the black market. Regulation didn't prevent the hack (or rug-pull?). Self-custody with DeFi does prevent it. It's shocking how some people are for tinkering hardware/software and self-hosting services like Nextcloud, but it…

Is it really that surprising people would rather keep their money in a bank that has hired professional security guards rather than at home under their mattress?

Yes, until we had cryptocurrency.

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

#310

Post by e1ghtSpace »

Ekaros wrote: post #290
lelanthran wrote: post #139

Earlier quoted context omitted.

I Dunn if it is fair to include Scientology in that. Other than the amounts of money involved, it clearly is a religion.

And in general religions are in business of extracting money from people and using it for their own means. Scientology is not any different from any other. Including the mainstream Christian cults...

Wait is the government a religion?
Post reply on HN