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$477M FTX ‘hack’ was a Bahamian government asset seizure

marketwatch.com

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Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#111

Post by easytiger »

55555 wrote: post #107

No one is mentioning that the new FTX CEO wrote in a recent Chapter 11 filing that the hack we're discussing here was actually 2 events: the movement of ~$300 in crypto AND the dilutive printing of ~$300 in FTT. Can somebody please explain that second one? Because this makes no sense at all.

As per FT:

> The “dilutive ‘minting’ of approximately $300m in FTT tokens by an unauthorised source” after FTX filed for bankruptcy. That’s along with the $372m hack.

Guessing: post ftx collapse someone minted new ftt tokens. Which should be strange because only FTX should have been able to do so.

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#112

Post by manholio »

55555 wrote: post #107

No one is mentioning that the new FTX CEO wrote in a recent Chapter 11 filing that the hack we're discussing here was actually 2 events: the movement of ~$300 in crypto AND the dilutive printing of ~$300 in FTT. Can somebody please explain that second one? Because this makes no sense at all.

It doesn't really matter, FTT is a garbage token forever associated with fraud. Its value is zero and you can print how many you like without hurting anyone.

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#114

Post by davidgay »

tartoran wrote: post #23
sanxiyn wrote: post #11

Earlier quoted context omitted.

The news article doesn't state the legal authority, but the statement from Securities Commission of the Bahamas of course does. "Under the Digital Assets and Registered Exchanges Act, 2020 (DARE Act), the Commission has the authority..." The government has the right to do this because FTX agreed to this .

But does FTX have the right to agree to this? It’s like me agreeing with a stranger to sell your house and split the proceeds between us. FTX wasn’t entitled to the customers money and neither had the Bahamian authorities.

> But does FTX have the right to agree to this?

That makes no sense. They are incorporated under Bahamianan law, so that law takes precedence over any contractual agreement. I.e., FTX cannot enter into a contract that declares implicitly or explicitly that they won't follow said law.

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#115

Post by justinator »

alexeldeib wrote: post #86
justinator wrote: post #77

Earlier quoted context omitted.

>On the contrary. It's the only case where maths can defend vs men with guns. Didn't work in this case.

Pragmatically I agree with you. But in GPs defense, I don’t believe these were multisig wallets with geographically distributed individuals in control. It was 1/1. Nonetheless, a metal pipe is a good counter to crypto.

I fear if Bad Guys want money and you tell them something like, "you can't get it, it's on multisig wallets with geographically distributed individuals in control", that's still a You problem and you've only bought yourself a little time before they come back to collect, and/or break your legs if they can't collect.

I may have to file this one under, "everyone wants to be a gangster until it's time to do gangster things"

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#116

Post by justinator »

zoklet-enjoyer wrote: post #85
justinator wrote: post #77

Earlier quoted context omitted.

>On the contrary. It's the only case where maths can defend vs men with guns. Didn't work in this case.

They didn't have a system set up to protect against that. Their private keys were on a shared email account

That's on the level of this story,

https://news.ycombinator.com/item?id=33536676

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#117

Post by hestefisk »

throwaway9980 wrote: post #26
woodruffw wrote: post #19

Maybe this is a stupid question, but how ? Was the Bahamas' SEC holding its own copies of FTX's keys? I thought the entire point of these schemes was that this kind of seizure-by-force wasn't possible (absent exploits or insiders).

Guns. Guns are how. Guns are how governments achieve their objectives. There is no crypto scheme, no algorithm, no possible arrangement of private keys and Merkle trees that can escape the reality of men with guns.

People with guns. Pls respect gender equality.

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#118

Post by lbwtaylor »

TacticalCoder wrote: post #70
throwaway9980 wrote: post #26

Earlier quoted context omitted.

Guns. Guns are how. Guns are how governments achieve their objectives. There is no crypto scheme, no algorithm, no possible arrangement of private keys and Merkle trees that can escape the reality of men with guns.

> There is no crypto scheme, no algorithm, no possible arrangement of private keys and Merkle trees that can escape the reality of men with guns. On the contrary. It's the only case where maths can defend vs men with guns. Multi sig schemes spread over different people over several continents make the "men with guns" thing very difficult. Or multisig but m-out-of-n, with a dead beat: if after x weeks you don't hear o…

> $5 wrench attack, here's my real password: take the 50 millions. Oops. Decoy.

I don't understand how this defeats the wrench attack.

Presumably you aren't released until the actual tokens are in hand, so decoys just make the attacker angrier.

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