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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

#701

Post by landemva »

tootie wrote: post #576
dzink wrote: post #287

Earlier quoted context omitted.

1. Crypto and web3 is so tarnished in consumer minds, it cannot recover. The next big thing in this space needs stay away from those terms like the plague. 2. Energy has become so valuable these days and Crypto tech has become so WASTEFULLY, UNNECESSARILY energy intensive, that the next iteration needs to be as cost efficient and effective as software. Transaction costs need to begin and remain extremely low to none.…

I have never understood what problems crypto/Blockchain/web3 is actually supposed to solve. I know it gained traction during the Libertarian/Austrian economics zeitgeist following the 2008 financial collapse. There was fear that the traditional fiat system was irreparably broken and couldn't be relied on. In reality regulators and central bankers did a pretty solid job (not perfect but they eventually got it right).…

One important feature for me is that nobody can take my coins from my wallet. Putting coins into an exchange or JPMorgan is not what I mean.

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

#702

Post by Animats »

danans wrote: post #678
socialismisok wrote: post #513

From what I understand, SBF described the product as a Ponzi scheme in so many words 6 months ago, yet somehow attracted more money than Enron. Now he's fled to Argentina, and people are are missing billions. Apparently he even had a custom client built that wouldn't trigger auditing. It never ceases to amaze that this story happens again and again.

> Now he's fled to Argentina What is it about inflationary and socialist Argentina that would attract a cryptocurrency capitalist con artist? Do they have no extradition treaty?

Yes, the US and Argentina have an extradition treaty.[1]

[1] https://www.state.gov/wp-content/uploads/2019/02/12866-Argen...

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

#703

Post by blitzar »

tinus_hn wrote: post #470
blitzar wrote: post #18

Earlier quoted context omitted.

In unrelated news SBF just found he had a bunch of crypto in his personal wallet. Totally not at all the pile of crypto that was last seen in the FTX wallet.

A minor problem with the blockchain is that the blockchain is actually an authenticated record of all transactions, so it’s pretty hard to hide where the crypto went unless you never actually exchange it or use it to buy something.

His keys his coins

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

#704

Post by wmf »

hn_throwaway_99 wrote: post #631
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…

But again, despite lots of people "believing in the core technology", nearly everyone who holds crypto is doing so for speculation - they want to get rich by greater fool theory. Even people/groups using it for putatively useful purposes, those purposes often tend to be 10x more complicated or risky than standard financial mechanisms (or, they are using crypto specifically for various forms of money laundering).

We now have a litmus test for this: If you are truly in it for the technology and not to get rich then obviously you would only use/develop stablecoins because they have the benefits of crypto without that pesky volatility. Virtually no one fits this description.

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

#705

Post by JamesianP »

seretogis wrote: post #624
FollowingTheDao wrote: post #585

Earlier quoted context omitted.

Corporate theft is not a hacking.

When you say "corporate theft" are you referring to theft from corporations or theft by corporations? I'm not sure it's clear which is relevant here.

I assume they mean embezzlement. Which come to think of it may or may not involve hacking.

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

#706

Post by matai_kolila »

FormerBandmate wrote: post #697
bogota wrote: post #625

Earlier quoted context omitted.

the fact that it has been executed so poorly to me seems like it is an insider who woke up and thought they could get away with it because they hd access to the keys

Wouldn’t an insider be an expert on crypto markets? They literally ran one

Not well!

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

#707

Post by dmurdoch »

FormerBandmate wrote: post #697
bogota wrote: post #625

Earlier quoted context omitted.

the fact that it has been executed so poorly to me seems like it is an insider who woke up and thought they could get away with it because they hd access to the keys

Wouldn’t an insider be an expert on crypto markets? They literally ran one

No. Not all insiders would necessarily be professionals as covering their tracks post crypto hack. They could just be someone who knew they had access to the keys and said "screw it my life is already horrible lets try this".

Another option is honestly an insider who got screwed (a lot of employees had a TONNE of money on FTX) selling the keys they knew of to someone else.

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

#708

Post by matheusmoreira »

X6S1x6Okd1st wrote: post #541

The hacker has spent the last 11 hours slowky and incrementally converting all the various tokens they got to ETH. They've been using a variety of different defi exchange and have eaten large slippage fees, at least once over 5M lost in slippage. We're not seeing any else, e.g. laundering through another exchange, splitting into different accounts, automating the liquidation of tokens to ETH, off loading ETH into a c…

Weird. Why ETH and not Monero? ETH can be traced.

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

#709

Post by HaZeust »

eddsh1994 wrote: post #667
davewritescode wrote: post #655

Earlier quoted context omitted.

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.

Yeah because you're a user on HackerNews.

That process is not at all streamlined for the layperson, and the structure of crypto has only existed to make it harder, and to further divorce from what could otherwise be a straightforward process for 99% of folks.

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

#710

Post by hamiltonians »

matheusmoreira wrote: post #708
X6S1x6Okd1st wrote: post #541

The hacker has spent the last 11 hours slowky and incrementally converting all the various tokens they got to ETH. They've been using a variety of different defi exchange and have eaten large slippage fees, at least once over 5M lost in slippage. We're not seeing any else, e.g. laundering through another exchange, splitting into different accounts, automating the liquidation of tokens to ETH, off loading ETH into a c…

Weird. Why ETH and not Monero? ETH can be traced.

no hurry. it's not like he needs the money now
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