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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

#791

Post by lazide »

Falcotech wrote: post #779
chitowneats wrote: post #759

Earlier quoted context omitted.

"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.

Just like cash is a crime magnet, so is Crypto at rest, and for the same reason.

If anything, Crypto is easier to track and stop the looting, compared to if someone left a key to a warehouse containing a billion dollars in cash in it with no security cameras, which is what FTX seems to have managed to do.

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

#792

Post by MisterTea »

drexlspivey wrote: post #771
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...

What if its a frame job?

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

#793

Post by JamesianP »

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…

> From your tone it seems like you think I'm trying to defend crypto in this thread.

Yes I got ranted at for suggesting "fools racing towards a cliff" as a better description. These threads appear to have attracted a lot of people looking for a fight and will jump on any nuanced post as a "pro" side.

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

#794

Post by lazide »

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 so puzzling when you realize most people are perfectly fine about something if they get paid by it, or think they might one day get paid by it.

Less fine if they won't and someone else will.

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

#795

Post by Stention314 »

kevinak wrote: post #497
Stention314 wrote: post #386

Earlier quoted context omitted.

Bitcoin fees are often not cheap at all. Just a week ago someone got cought and the fbi took his 3 billion dollar worth of BTC. Sending crypto to someone in Iran or Russia is against the law independent of how you do it. And just because you can send BTC to Iran someone in Iran also needs to exchange it to something real again. While banking is more restrictive, when you go to your bank with your passport, you actual…

You need to start backing up your statements with facts. Please show us that bitcoin fees are "often not" cheap at all. Here's some actual data you can look at: https://mempool.space/graphs/mining/block-fee-rates#all Look at the "Min" fee rate; regularly very close to 1. That's $0.02 at current prices.

Sources? I was buying and transferring bitcoins over 8 years as I bought weed through it.

Of course you can even pay 0 but you know it's not the normal someone would wait days for the transaction going through.

You clearly did not use Bitcoin often enough otherwise you could just looked the spikes up yourself. That first corona year was even worse with the fees.

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

#796

Post by Stention314 »

kevinak wrote: post #597
netrus wrote: post #564

Earlier quoted context omitted.

Aren't landfills close to civilization usually, so it would not be hard to transfer the electricity some miles to charge Teslas, heat homes or power etc. Where are landfills too remote to transport electricity away from?

I'm sure that's the case for some of the landfills, but definitely not all of them. In the US 70% of the methane from landfills is vented, rather than flared. That means that for some reason, either it's too expensive to do or something else is blocking this. And that's just the US. You can also imagine that landfills in the developing world are better targets. Infrastructure is not as good there as it is in the US o…

The profit is too small.

Easy to solve with laws. Shouldn't be allowed anyway to just pick the good things from a gas field...

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

#797

Post by CPLX »

BlueTemplar wrote: post #784
CPLX wrote: post #666

Earlier quoted context omitted.

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...

Doesn't this make all forms of bureaucracy (and hence, civilization) parasitic ? (Or are you just supposed to regularly "drain the swamp" ?)

No. Seems like a non sequitur to me.

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

#798

Post by x86_64Ubuntu »

X6S1x6Okd1st wrote: post #756
wklm wrote: post #635

Earlier quoted context omitted.

what are the best practices for dumping a significant amount of illiquid shitcoins under time pressure?

The harmony bridge hack by Lazarus group (north korean actor) is a good example: The first address used is 0x0d043128146654c7683fbf30ac98d7b2285ded00 It's a bit harder to trace using public tools because they immediately start splitting off the various coins to other addresses, but looking at just the USDC: They split it off into a single purpose address that is just responsible for converting it to ETH. They do this…

What's "slippage"?

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

#799

Post by jl2718 »

threeseed wrote: post #220
jl2718 wrote: post #203

Earlier quoted context omitted.

Yes, smart contracts can be programmed to allow terrible human behavior. Banks also have this feature. But... they can also be programmed NOT to allow terrible human behavior. Banks do not have this feature.

Banks interact with the legal system at every level. So yes there maybe terrible human behaviour at times but very quickly it results in either (a) people being fined or going to jail or (b) laws improving to prevent it e.g. KYC/AML. Also as someone who works at a bank there is a lot of code which governs what people can and can't do.

Are you suggesting that KYC/AML protects consumers from the bank?

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

#800

Post by lottin »

miguelmota wrote: post #662
lottin wrote: post #355

Earlier quoted context omitted.

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.

> is 100% times better

I think this says it all.

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