These are 99 times out of 100 an inside job.
Probably more like 70-30. Most exchanges are a security trash fire.
Mixin suspends deposits and withdrawals after $200M cryptocurrency heist
11–20 of 85 posts
Re: Mixin suspends deposits and withdrawals after $200M cryptocurrency heist
#12"government-backed cryptocurrency thieves"
Pirates in the original sense.
Re: Mixin suspends deposits and withdrawals after $200M cryptocurrency heist
#13Earlier quoted context omitted.
If they are storing credentials to access funds in a centralized database, they are by definition not "decentralized". For example, Curve.fi meets the common definition of "decentralized exchange", and as such does not store credentials, etc in a centralized database. Their code is deployed to Ethereum and runs on Ethereum, so users are able to make trades against it, deposit funds into trading pools, etc, all withou…
> they do not have the risk of someone stealing passwords from their server and walking away with the money So if they get hacked and the credentials to upload code get stolen, what happens? Wouldn’t the hackers be able to deploy code that steals users crypto?
Probably requires some sort of consensus to accept newly uploaded code.
Re: Mixin suspends deposits and withdrawals after $200M cryptocurrency heist
#14Earlier quoted context omitted.
If they are storing credentials to access funds in a centralized database, they are by definition not "decentralized". For example, Curve.fi meets the common definition of "decentralized exchange", and as such does not store credentials, etc in a centralized database. Their code is deployed to Ethereum and runs on Ethereum, so users are able to make trades against it, deposit funds into trading pools, etc, all withou…
> they do not have the risk of someone stealing passwords from their server and walking away with the money So if they get hacked and the credentials to upload code get stolen, what happens? Wouldn’t the hackers be able to deploy code that steals users crypto?
Ethereum contracts are generally immutable so there is no facility to "upload code".
Re: Mixin suspends deposits and withdrawals after $200M cryptocurrency heist
#15[deleted]
Re: Mixin suspends deposits and withdrawals after $200M cryptocurrency heist
#16> Mixin Network confirmd on Monday that it has "temporarily suspended" all deposit and withdrawal services after hackers broke into a database and stole about $200 million in funds from the Hong-Kong based cryptocurrency firm. > Mixin, which is a decentralized exchange, These 2 statements seem to contradict each other. If they are a decentralized exchange, how were funds stolen by hacking into a database?
Only few projects (like uniswap) are truly decentralized. Most projects are not, and only claim they'll eventually become decentralized once "they finish development".
It's a spectrum, and storing credentials in a database is much closer to centralized than decentralized.
Re: Mixin suspends deposits and withdrawals after $200M cryptocurrency heist
#17Earlier quoted context omitted.
> they do not have the risk of someone stealing passwords from their server and walking away with the money So if they get hacked and the credentials to upload code get stolen, what happens? Wouldn’t the hackers be able to deploy code that steals users crypto?
Probably requires some sort of consensus to accept newly uploaded code.
Why? Why do you speculate? The answer is easily accessible information. Smart contracts can be made immutable.
Re: Mixin suspends deposits and withdrawals after $200M cryptocurrency heist
#18Earlier quoted context omitted.
> they do not have the risk of someone stealing passwords from their server and walking away with the money So if they get hacked and the credentials to upload code get stolen, what happens? Wouldn’t the hackers be able to deploy code that steals users crypto?
Ethereum contracts are generally immutable so there is no facility to "upload code".
Except that almost all of them seem to be using an update mechanism anyway...
Here's USDC on Ethereum, for example: https://etherscan.io/address/0xa0b86991c6218b36c1d19d4a2e9eb... – you can clearly see the upgrade mechanism that will allow anyone that knows the admin key to swap out the contract for anything they like.
The cryptocurrency ecosystem's idea of decentralization in a nutshell.
Re: Mixin suspends deposits and withdrawals after $200M cryptocurrency heist
#19"government-backed cryptocurrency thieves" Pirates in the original sense.
If they are government-backed bandits who ply their trade on the high seas, protected by a letter of marquee, they would be privateers.