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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

#661

Post by paulgb »

irusensei wrote: post #522
paulgb wrote: post #458

Earlier quoted context omitted.

Nobody has the power to unilaterally “set the price” of energy, it’s set by the market. Free markets are great for a lot of things, but pricing in externalities isn’t one of them.

Agreed but I think people should be looking at power companies and how they generate energy for accountability instead of going for industry A and B. Wiping PoW from the face of the earth won’t make those coal plants in China go away.

No, but it will reduce the demand for what they produce. This isn’t hypothetical, even in the US there are examples of coal/natural gas plants getting brought back online for bitcoin mining (finger lakes NY; Hardin, MT)

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

#662

Post by miguelmota »

lottin wrote: post #355
miguelmota wrote: post #209

Earlier quoted context omitted.

> Is there any crypto out there without humans ? What OP is referring to is that you don't need to trust people if the dex is on-chain and verifiable. FTX was a non-transparent and insolvent centralized exchange which wouldn't be possible if it was on-chain because anyone can see the funds that are available and the protocol would not allow leverage backed by non-existing collateral. > Is there an undo button to reve…

Removing the possibility for human intervention doesn't make things more resilient quite the contrary. Removing human control of public policies, such as those involving the management of public resources, is downright anti-democratic and dumb. If you people intend to build a monetary system, you need to educate yourselves about monetary systems. The money supply must be managed (i.e. inflated and deflated in your un…

The money supply managed by an on-chain protocol where it’s fully open, trustless, and predictable is 100% times better then a small group of people at the treasury deciding to print money and inflate peoples savings always.

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

#663

Post by maxbond »

arithmetiqa wrote: post #651

Honest question. How is it that the traditional banks stay comparatively secure from hacks and the crypto scene is an endlessly reporting the next big breach? Maybe the crypto exchanges should hire some bank security experts or at least adopt their best practices

I'd wager that it's because banks are able to reverse transactions, so even though there must be hackable banks out there (on account there being thousands of them), it must be incredibly difficult to monetize.

Additionally, if you hack a crypto exchange it isn't clear that law enforcement will be all that interested. If you steal from a bank, or from the people who've made deposits at that bank, it's a different story.

Lastly there's an infrastructure of coin laundries to facilitate crypto heists that's accessible to everyone, but in "tradfi" that infrastructure either doesn't exist or isn't generally available.

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

#664

Post by blamazon »

arithmetiqa wrote: post #651

Honest question. How is it that the traditional banks stay comparatively secure from hacks and the crypto scene is an endlessly reporting the next big breach? Maybe the crypto exchanges should hire some bank security experts or at least adopt their best practices

I forget who, but some human described crypto as speedrunning the past century or two of financial history, which seems apt. I think the traditional banks and regulators learned similarly hard lessons too, it was just mostly before I was born.

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

#665

Post by miguelmota »

Thorrez wrote: post #259
imgabe wrote: post #211

Earlier quoted context omitted.

There is the same undo button that exists for every other financial institution that commits fraud: lawsuits.

And if you can't find the person to sue because the person is an anoymous hacker? With fiat the court will tell the banks to reverse the transactions.

If someone sends physical cash to a person across the world, is there an undo button?

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

#666

Post by CPLX »

iblaine wrote: post #33
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…

It’s unfortunate that what started out with altruistic motives, a method for decentralized anonymous asset exchange, is being derailed by opportunists. There was a time where a 51% attack was the biggest concern. All that said, I’m not surprised at where we are today.

In times like this I often find comfort in the expression "The Purpose of a System is What It Does"

https://en.wikipedia.org/wiki/The_purpose_of_a_system_is_wha...

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

#667

Post by eddsh1994 »

davewritescode wrote: post #655
pinkfairy10 wrote: post #591

Earlier quoted context omitted.

Losing faith just because a CEX goes down means you were never interested in it beyond speculation to begin with it.

All of crypto is speculation. Nobody pays for anything with crypto and most of the time the price movement of Bitcoin seems pretty close to the movement of NASDAQ. ETH provides value but it’s moved to an unproven model. The who crypto ecosystem is filled with charlatans and crooks who want to rob you and your only other alternative is to be your own bank and store in a cold wallet. Not something normal people are int…

I’ve routinely bought my morning bacon and avocado sandwich with coffee using various crypto at a local cafe in Oxford, when I lived there.

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

#668

Post by xtracto »

boppo1 wrote: post #653
xtracto wrote: post #542

Earlier quoted context omitted.

I've been in cryptocurrencies/blockchain since 2012. I "missed" the BTC boat and got into ETH early. I'm of the thought that CeFi services like Ftx, Nexo, Coinbase and similar are stupid. The only thing that should exist is simple Exchanges between Fiat and cryptocurrency. But everything else is just a scam IMHO. Why would you do a CeFi in crypto , when theres more TAM in doing it normal FIAT? Because you want to Avo…

Can you point me in the direction of how to reliably setup a cold wallet for ETH? Apparently much harder to find a guide for than BTC. A wallet generator I can run on a tails USB would be ideal.

An ETH wallet is just a private/publik keypair. You only have to generate a compatible pair [1] and write it in a piece if paper. What makes it "cold" is that you dont place your keys sonwhere online (myetherwallet, exodus,etc) so it cant be hacked.

[1] https://www.arthurkoziel.com/generating-ethereum-addresses-i...

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

#669

Post by 65 »

hello639 wrote: post #548
lottin wrote: post #400

Earlier quoted context omitted.

Get out, man. Learn investment theory. All you need is a couple of index funds and bonds. Investing isn't supposed to be exciting or make you rich quick.

> All you need is a couple of index funds and bonds. Ah, spoken like a true middle class Boglehead. VTI/VOO will not change your life, even after 30 years. Broad market ETFs are not worth the risk. You’re better off doing bonds (little to no risk) or crypto (high risk, more likely for life-changing generational wealth compared, even compared to FAANG SWE TC).

Crypto isn't actually an investment in anything. It's just speculation.

With crypto you're not investing in anything that will produce a positive cash flow. Bonds and the stock market actually produce cash flow.

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

#670

Post by bogomipz »

The article states:

>According to on-chain data, various Ethereum tokens as well as Solana and Binance Smart Chain tokens exited FTX's official wallets and moved to decentralized exchanges like 1inch. Both FTX and FTX US appear to be affected."

Can someone say what the significance of moving these tokens to a decentralized exchange is? I'm guessing there's a strategic reason for doing so. Can someone explain what that it is if so?

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