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Bybit loses $1.5B in hack

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Re: Bybit loses $1.5B in hack

#241

Post by skeeter2020 »

Klaster_1 wrote: post #19
huang_chung wrote: post #6

Society has devolved a bit when not long ago a heist like this would involve sieging Nakatomi Plaza, now it takes just finding a bug in someone's defective Python codes.

I wonder how many programmers resort to crime after they were laid off and couldn't find a job. Like soldiers after a war.

not related to the current western market, but countries like Romania pre EU had a huge surplus of soviet-educated young people and no jobs. This definitely increased their involvement with "informal" economies for some time.

Re: Bybit loses $1.5B in hack

#242

Post by bryceneal »

consumer451 wrote: post #86
bryceneal wrote: post #79

Earlier quoted context omitted.

I see this quote repeated here often, but working in the industry I've never heard it said unironically by any of my peers or thought leaders in the space. Best I can tell it is a sort of lazy straw man repeated by skeptics. Does it have an origin?

https://blockchain-society.science/?p=218 https://ethereumclassic.org/blog/2024-04-03-ethereum-classic... Are those appropriate sources?

I suppose so, however Ethereum Classic is a fork of Ethereum that failed. I don't think it's generally well regarded in the space. I doubt many of the newer entrants to the ecosystem have even heard of it.

This would be like finding a quote from some old poorly maintained Linux distribution and attributing quotes from the maintainers as being representative of all kernel developers.

Re: Bybit loses $1.5B in hack

#243

Post by bryceneal »

gosub100 wrote: post #233
bryceneal wrote: post #79

Earlier quoted context omitted.

I see this quote repeated here often, but working in the industry I've never heard it said unironically by any of my peers or thought leaders in the space. Best I can tell it is a sort of lazy straw man repeated by skeptics. Does it have an origin?

The original idea with crypto was that the "code" was so strong, it removed the need for physical banks, tellers, FDIC, law enforcement, etc. The theory was, we can have everything the banking system has, but cheaper, because the only way to steal money was to break the crypto itself, hence "code is law". The industry cannot appeal to the protections of law enforcement, civil tort, and other features of the regulated…

> The original idea with crypto was that the "code" was so strong, it removed the need for physical banks, tellers, FDIC, law enforcement, etc.

Is this really an accurate characterization of "the original idea"? And according to whom?

Re: Bybit loses $1.5B in hack

#244

Post by evantbyrne »

huang_chung wrote: post #6

Society has devolved a bit when not long ago a heist like this would involve sieging Nakatomi Plaza, now it takes just finding a bug in someone's defective Python codes.

It has been this way since the dawn of electronic banking. I once had complete access to all digital wallets for the Seattle metro, which I gained by looking at two cards and noticing the numbers were incrementing. Even with all of the flaws of electronic transactions, it's still better than walking to the bank and hoping a check won't bounce.

Re: Bybit loses $1.5B in hack

#245

Post by kzrdude »

yard2010 wrote: post #157
netrap wrote: post #21

Earlier quoted context omitted.

Just crazy. Bank heists fully online...

It's a cold wallet which means it should never be connected to the internet, so not entirely online, but yes - these are the wild wild west times of the internet. Imagine how easy it was to go into a bank shoot some people and get out with money, and doing it like, daily? monthly? Today it's not possible.

Apparently there was a path from the internet to the wallet anyway, that's what it sounds like.

Re: Bybit loses $1.5B in hack

#246

Post by owlninja »

jqpabc123 wrote: post #222
killerstorm wrote: post #214

Earlier quoted context omitted.

How it it different from what banks do? (Except for a central regulator.)

How it it different from what banks do? (Except for a central regulator.) Your exception is the answer. Only the central regulator can "mint" money and doing so has real world consequences. The central regulator has financial incentives to limit this sort of activity. The bizarro world of crypto has no such regulation and as a result, it is inherently unstable. The proof of this is right in front of you --- it is the…

I saw a quote somewhere:

>Crypto is speedrunning the entire evolution of finance to end up at the same place

Re: Bybit loses $1.5B in hack

#248

Post by Saline9515 »

plantain wrote: post #130

How on earth is it possible they can cover a 1.5B loss? Are they really sitting on that much profit, or is the goal to ponzi it out from here, MtGox style?

Bybit is one of the most used crypto exchanges and does >100M$ of revenue per month, growing fast.

If this isn't enough, I'm sure that every crypto VC would line up to buy a single digit % of their equity to cover up the hole. Crypto hosts the most profitable businesses in the world.

Re: Bybit loses $1.5B in hack

#249

Post by cmcaleer »

joshstrange wrote: post #206
cmcaleer wrote: post #186

Earlier quoted context omitted.

> what exactly is left to keep anyone a “huge believer”? I don't really engage in the ponzibucks part and don't touch exchanges except to on and off-ramp, and use crypto to pay for things like hosting, seedboxes, or other services I might not necessarily want my debit card directly attached to. I like sending vendors $100 and spending $0.00005 in transaction fees and knowing that they'll get $100 (or $99 with some 3r…

Your transfer fees are a bit off. Coinbase is 10,200x more than you stated ($0.51 to send $100) BUT that’s only if I send directly on Coinbase. Coinbase Commerce takes 1% so it would actually be 20,000x more than you listed. Stripe is 64% of what you stated ($3.20), and that’s with no processing fee discounts like you can get with higher volume. Now, obviously, $3.20 > $1 but it’s not apples to apples. You can claw b…

Solana is the main chain I use for these transfers, and it’s 0.000005 SOL * $170/SOL = $0.00085 to transfer any amount of USDC. so I was a little off there. My apologies for a $0.0008 error.

By the way, I specifically mentioned Coinbase commerce takes about a dollar: > $100 (or $99 with some 3rd party integration like Coinbase Commerce)

Stripe fees vary, but in a frequent case where a user is using an international card in a foreign currency it’ll very easily get close to 5%.

For me, yeah $2.2 is relatively immaterial. For a provider who’s doing $1MM in crypto transactions? Somehow I suspect that a few percentage points are quite meaningful, and I get the benefit of not having to explain what a seedbox is to my bank if they ever call me.

Again, crypto as a payment method is not for everything. But it’s quite nice to have the option.

Re: Bybit loses $1.5B in hack

#250

Post by Saline9515 »

jqpabc123 wrote: post #211
plantain wrote: post #130

How on earth is it possible they can cover a 1.5B loss? Are they really sitting on that much profit, or is the goal to ponzi it out from here, MtGox style?

How on earth is it possible they can cover a 1.5B loss? Easy! They give Binance an IOU in exchange for 1.5 billion BUSD which is just "minted" out of fresh new electrons. Neither of them has really lost anything. Everyone can carry on as if it never happened. In the bizarro world of crypto, this is business as usual.

Binance doesn't mint BUSD, BUSD is emitted by Paxos, which is an american licensed company.
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