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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

#721

Post by Emma_Goldman »

fallingknife wrote: post #482
jasonwatkinspdx wrote: post #473

Earlier quoted context omitted.

It's performative in exactly the same way I grew up among with evangelical extremists. You can't reduce moral decisions and ethics to some sort of karmic account balance. Functionally EA allows its promotors to rebrand self interest as actually altruism. It becomes an all purpose end to justify any means. A thought ending cliche to avoid engaging with the actual complexity.

And yet no one ever seems to be able to actually define a better moral decision making process or describe what the argument defeating "complexity" actually is. Just a longer way of saying "I disagree."

I think the OP is being unfair to Will and EA, but your statement is pretty outrageous. No one's ever come up with a moral or political philosophy other than utilitarianism - are you serious?

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

#722

Post by tevon »

This is additionally a reminder that crypto currently holds a fairly irreconcilable catch-22.

"Freezeable" tokens completely defeat the purpose of a decentralized currency. Why create nodes/verifiers etc if a wallet can be unilaterally frozen, either under pressure from gov't, community, or another entity.

However NOT allowing freezeability allows for massive hacks, either by insiders, poor security, or sloppiness.

Seems the solve is somewhere in the middle, a pool of trusted intermediaries.

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

#723

Post by tevon »

Can someone deeper in the space explain the series of transactions from

"letssavecrypto.eth" to the FTX Drainer address?

Seen here: https://etherscan.io/address/0xaa16547cdc32268542145d3401120...

My guess is its a way to communicate a message via txn data.

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

#724

Post by tromp »

mdolon wrote: post #650
tromp wrote: post #374

Earlier quoted context omitted.

> Or are you more referring to Satoshi’s white paper when you refer to “altruistic motives”. There's little altruistic about an emission that allocates half of all supply (first four years) going to early miners including Satoshi himself, and leaves only crumbs for later generations.

This was my biggest “a-ha” realization around crypto, that the distribution model is utterly and irreparably broken for the most popular currencies. Whenever I bring this up with BTC/crypto maximalists their counterpoint is that fiat is also unevenly distributed and that it’s not a novel problem. The disconnect is truly puzzling.

It's not a novel problem, but nearly all cryptocurrencies exacerbate it by concentrating the majority of emission on the first few years. Non-pow coins even start with the creators holding 100% of supply.

When they could instead minimize the problem (or limit it to the pre-existing fiat inequality) with a pure linear emission, i.e. fixed block subsidy.

The resulting high supply inflation rate (1/n after n years) would have the side benefit of deterring speculation, and keeping prices (and hence environmental impact) low.

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

#725

Post by smeej »

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.

They're largely ERC-20 tokens, which can be swapped for ETH on DEXes. Monero is a whole separate blockchain, and cross-chain swaps are still in their infancy and don't have markets to convert ERC-20 tokens to Monero, or definitely not with any sort of volume.

The ETH will probably eventually be laundered and some of the cleaned coins sent places they could eventually be traded for XMR and eventually cashed out, but there's no way to do that quickly, and this needs to be done quickly.

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

#726

Post by tevon »

tevon wrote: post #723

Can someone deeper in the space explain the series of transactions from "letssavecrypto.eth" to the FTX Drainer address? Seen here: https://etherscan.io/address/0xaa16547cdc32268542145d3401120... My guess is its a way to communicate a message via txn data.

Nevermind, looks like its an on-chain add for another crypto service. Haven't seen that before

https://etherscan.io/tx/0x6bdd6c7d90c7f67223f7971745d5bc1f7b...

Text in utf-8:

Check out Fringe Finance, fully decentralised/non custodial platform. It's very very important to support projects like Fringe if we don't want events like FTX to repeat. Do check :- https://www.coingecko.com/en/coins/fringe-finance Problem won't solve just by creating Fck FTX Token. We need to support Fully Decentralised and Non Custodial platform Fringe at any cost. Lend/Borrow/Stake/LP/Stable Coin/Collaterals etc etc Team has been burning midnight oil, putting their blood and sweat into this. Check website, Read mediums. This project can end centralised scams for ever. Let's save crypto and pledge no one ever gets burnt again. Support Decentralisation, Support Hardwork, Support Fringe Finance.

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

#727

Post by BeFlatXIII »

fumblebee wrote: post #503

Surely it's not a coincidence that on the day FTX announces bankruptcy, this gigantic hack occurs? Some folks in this thread are speculating this might've been an inside job. I suspect, it's likelier that hackers had been aware of a vulnerability for some time, had a plan to drain these funds, but decided to hasten the timeline on the basis of the news FTX was going under.

Drain the funds before the creditors get to them.

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

#728

Post by JamesianP »

crazygringo wrote: post #568
ryanSrich wrote: post #498

Earlier quoted context omitted.

“Any sensible person”. I think this is an unfair characterization of people that keep large sums on exchanges. It’s not unreasonable to trust a company worth billions to hold your funds. Some might even argue an exchange is safer than a hardware wallet in the sense that if you physically lose the wallet, or completely forget the password, you’re SOL. No one expects a multi-billion dollar exchange to vaporize over nig…

> No one expects a multi-billion dollar exchange to vaporize over night. Except for everyone who has? We don't expect banks to vaporize because they're FDIC-insured with extreme regulations on their lending/investing, highly regulated. But crypto exchanges are the wild west. Totally vulnerable to both hacking and ponzi scheme fraud. Essentially zero regulation or customer insurance. And "vaporizing over night" is how…

There isn't zero regulation. An online businesses is subject to the laws of its customers' countries. And the laws may not be up to date enough for some new scams, but they aren't completely naive. For example ponzi schemes are illegal. If they were doing that the govt will go after them (sooner or later...). A quick google search will net you plenty of stories about prosecutions.

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

#729

Post by smeej »

hamiltonians wrote: post #710
matheusmoreira wrote: post #708

Earlier quoted context omitted.

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

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

There is some hurry. Miners and nodes could theoretically update and refuse transactions that come from these wallets.

There would have to be enough of them doing this to prevent the transactions from getting through, which is far from guaranteed, but this is of the sort of scale that it could gain the required support.

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

#730

Post by crypt1d »

misiti3780 wrote: post #719
crypt1d wrote: post #420

This last week has been a rollercoaster. I've been in crypto since a long time ago and have seen quite a bit, but this FTX implosion takes the crown. And to be honest, I don't think its over.

Another interesting thought I keep going back to is .... since crypto is really zero sum, who the hell was on the other side of these horrible trades that has billions now?

At this point it wouldn't surprise me if they siphoned off the money by being on the other side of those trades via different entities...
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