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

Post by 55555 » Sat, Nov 19, 2022, 10:04 AM UTC

easytiger wrote: post #111

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.

Post by LatteLazy » Sat, Nov 19, 2022, 10:27 AM UTC

lost_tourist wrote: post #159

LatteLazy wrote: post #157

Kudos to the Bahamas for actually knowing what to do and acting decisively in the public interest...

They acted decisively but -highly- suspect it is for public interest but a very small group of private interests.

Post by luckylion » Sat, Nov 19, 2022, 10:42 AM UTC

lbwtaylor wrote: post #118

TacticalCoder wrote: post #70

Earlier quoted context omitted.

> 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.

Post by [deleted] » Sat, Nov 19, 2022, 10:50 AM UTC

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

Post by JamesonNetworks » Sat, Nov 19, 2022, 11:10 AM UTC

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).