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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

#761

Post by jinpa_zangpo »

rchaud wrote: post #601
groffee wrote: post #34

Earlier quoted context omitted.

SBF takes "full responsibility".

Perhaps he will take some time to clear his head. Is there a monastery in South America where he can repent? Preferably one with no extradition treaty?

All the countries in South America have extradition treaties with the United States. If he's looking for a monastery, he should head to a Buddhist monastery in Vietnam.

List of countries with extradition treaties with the USA: https://2009-2017.state.gov/documents/organization/71600.pdf

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

#762

Post by X6S1x6Okd1st »

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

They may not have been involved in the operations of how to run the software/make the trades/interface, who knows they could just be a physical security person that realized there was an opportunity in the chaos.

I haven't seen any public information that tells us who it might be, this is all guess work, but it really doesn't look like a professional operation like Lazarus Group

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

#763

Post by Thorrez »

lottin wrote: post #382
Thorrez wrote: post #248

Earlier quoted context omitted.

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.

Who will be in charge of deciding which transactions need to be reversed and when? It seems to me that the ability to have reversible transactions is at odds with the descentralised nature of blockchains.

I agree with you. There doesn't seem to be a good way to allow transactions to be reversed while keeping decentralization.

My point is that this decentralization is bringing in a risk that traditional banks don't have. So saying "regulating it like a bank will make it as secure as a bank" is incorrect.

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

#764

Post by X6S1x6Okd1st »

VagueMag wrote: post #740
hamiltonians wrote: post #712

Earlier quoted context omitted.

this is not the same as protocol level censorship

If authorities wanted to freeze a subset of DAI, could they do so by directing USDC to refuse to back those tokens?

Nope they'd have to freeze the entire collateral that Dai has (~33% of all collateral they have rn), Dai could not freeze individual addresses and almost assuredly wouldn't even if asked.

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

#765

Post by bombcar »

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

1. Not all the insiders are very skilled, as we can see from these things blowing up in expected ways.

2. Even if you ARE a skilled insider, you may have no experience with laundering coin.

3. The biggest/best coin launderer was killed (tornado?) recently, so you may have to learn everything again.

4. You may be an expert with a gun to your head in some basement in God knows where, and trying to not be shot.

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

#766

Post by sillysaurusx »

bogota wrote: post #625
bonestamp2 wrote: post #609

Earlier quoted context omitted.

What are the chances that this is an insider and not an outsider? I ask because the timing of this "hack" is obviously a little suspicious.

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

There are reports of SBF having used a backdoor to move funds. https://twitter.com/BTC_Archive/status/1591365581550551043?r...

It’s unclear if that’s a legit source though.

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

#767

Post by bombcar »

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?

Supposedly from what I'm hearing from /r/buttcoin rumors, Alameda was very bad at trading, so the billions have gone to the people doing the opposite trades from Alameda, which were being funded by FTX to try to gamble back the amounts lost.

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

#768

Post by bombcar »

kkielhofner wrote: post #544
Gasp0de wrote: post #429

FTX is just an exchange right? Any sensible person only puts funds into an exchange that they want to trade. Not your keys, not your crypto.

“Not your keys, not your crypto” is one of the most out of touch axioms in the crypto space (and that’s really saying something). See: the vast majority of the population (even within crypto) that can’t figure out how to setup a wallet in the first place. Then, if you get that far, you can join the hordes of people that lose access to it, dig through garbage dumps for a laptop, have malware that inspects the clipboar…

If you lose your passphrase or get your coins stolen - should have done security better or used an exchange.

If an exchange goes bust, not your keys, not your coins.

There is always an answer as to why it it is your fault, which is why it will never really catch on.

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

#769

Post by jtbayly »

matheusmoreira wrote: post #713
api wrote: post #652

Earlier quoted context omitted.

Is it a coincidence that the founder of FTX seems to be fleeing to Argentina? Of course one would assume he or his conspirators would do a better job, but maybe not if this busting out was initiated under time pressure. Once again almost everything in cryptocurrency proves to be a scam.

> Once again almost everything in cryptocurrency proves to be a scam. Once again people on HN hate on cryptocurrencies for no good reason. This isn't a cryptocurrency problem, it's a fractional reserve banking problem. These centralized exchanges are unregulated banks in disguise. It's no surprise to anyone that they exhibit all of the problems of unregulated banks. Problems such as "we used customer deposits to gamb…

Well, if this was what cryptocurrency was created to prevent, then whether or not it's a scam, it's pretty well clear to me that it's useless.

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

#770

Post by anm89 »

qeternity wrote: post #459
anm89 wrote: post #407

It's pretty astounding that there was essentially no volatility in crypto markets along with this. To the point of being fishy.

It shouldn’t be astounding. The entire crypto market is controlled by a handful of powerful entities. It goes up when they want it to, and it goes down when they want it to. It crashes when they lose control, as they did earlier in the year. But at this point I don’t believe there’s enough riding on FTX that they’ve lost control again. FTX is a story of retail and normies getting rinsed. But that’s zero sum. Who do y…

Yeah, somehow, I don't think a yearlong 80-90% down is the choice of a cabal of all powerful overlords.

I did forget to wrap my doorknobs in tinfoil today so maybe I'm just not thinking straight

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