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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

#771

Post by drexlspivey »

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…

Looks like he sent the money to a kraken account under his real name lol. https://cryptoslate.com/ftx-hacker-identity-discovered-by-kr...

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

#772

Post by pcthrowaway »

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?

There aren't USDC backing the DAI for any given DAI. If I have 5 DAI, you can't point to 3-4 USDC backing it (I think ETH backs it too).

Even if Circle did freeze some of DAI's USDC, the Dai contract does not contain the ability to freeze user funds, and I believe is also not upgradeable

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

#773

Post by goodSteveramos »

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…

>people on HN hate on cryptocurrencies for no good reason.

Traditional bankers have spent an incredible amount of time and taken huge political risks to gain hold over the US money supply. They and people in the wall street sphere have a very good reason to hate on crypto, they just dont have any convincing arguments for people like us who dont want them controlling the money supply.

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

#774

Post by lamontcg »

everfree wrote: post #732
lamontcg wrote: post #673

Earlier quoted context omitted.

Literally only a paradox in places like Hacker News by people who are motivated to question calling crypto a Ponzi. I've got bad news. It is still a Ponzi if people are "honest" about it being a Ponzi, it is still a Ponzi if it started out as an investment idea and it went Ponzi as losses added up. Arguing that clear Ponzis aren't really Ponzis due to some kind of semantic rules is a gigantic display of "copium". The…

> It is still a Ponzi if people are "honest" about it being a Ponzi It literally isn't. Please go back to the definition, which requires a specific type of deception. If you wished, perhaps you could call crypto some kind of gamble, confidence game, or other category of scam. > Arguing that clear Ponzis aren't really Ponzis due to some kind of semantic rules is a gigantic display of "copium". From your tone it seems…

Cite that definition.

And that is how cryptocurrencies work. There's net inflows of currency, and net outflows of currency and there is a systemic bank balance at any one time of currency. If outflows exceed inflows for long enough then the balance is drained to zero and the music stops. That is a Ponzi. Madoff's Ponzi worked up until the 2008 recession hit him with redemptions and outflows and his bank balance got drained.

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

#775

Post by notch656a »

AustinDev wrote: post #754
tinus_hn wrote: post #470

Earlier quoted context omitted.

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.

Swap to Monero then slowly trickle swap back to your coin of choice as you need the funds. 'Problem Solved' There is a reason US regulated exchanged with KYC don't deal in XMR.

Huh? Kraken deals in XMR in the US. You can literally upload a US passport and they will sell/buy you XMR. They've been doing it for years.

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

#777

Post by Maursault »

api wrote: post #652
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…

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.

> seems to be fleeing to Argentina?

That could only work before 1997.[1]

[1] https://www.congress.gov/treaty-document/105th-congress/18/d...

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

#778

Post by VectorLock »

chitowneats wrote: post #759
smeej wrote: post #725

Earlier quoted context omitted.

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 t…

"still in their infancy" implies they will eventually mature. Non-zero chance we're watching the final implosion of blockchain based cryptocurrency.

I don't think we'll ever see the end of cryptocurrency. Too good of a grift.

I wonder if we will reach a point where "crypto" will revert to not meaning "cryptocurrency" though.

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

#779

Post by Falcotech »

chitowneats wrote: post #759
smeej wrote: post #725

Earlier quoted context omitted.

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 t…

"still in their infancy" implies they will eventually mature. Non-zero chance we're watching the final implosion of blockchain based cryptocurrency.

Although FTX was a crypto exchange the crimes committed were not dependent on blockchain technology. FTX is a company and was holding money and assets for its clients. It's somewhat similar to what Bernie Madoff did to his clients, before crypto was relevant.

Blockchain based cryptocurrency isn't going anywhere anytime soon. This will remind people to take self custody of their crypto and not leave it on an exchange.

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