Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Bybit loses $1.5B in hack

tradingview.com

Post reply on HN
Print view View original

301–310 of 381 posts

Re: Bybit loses $1.5B in hack

#301

Post by simpsond »

FabHK wrote: post #266
simpsond wrote: post #204

Earlier quoted context omitted.

My faith would shake when scams, rugs, fraud, and ponzis completely stop outside of crypto.

The "oh but there's crime in fiat" argument holds no water. Sure, HSBC facilitated money laundering and drug trafficking in Mexico. And when it came out, the fiat response was a huge outcry and putting a stop to it. The crypto response is to say "screw the laws, let's go all in with money laundering and drug trafficking". It's like noticing that kitchen knives are occasionally used for murder, and then concluding tha…

Fiat currencies have collapsed in the past due to bad monetary policy (regulation is only good right?). Ask Argentinians how they feel about stablecoins after rapid inflation.

Alternative currencies offer competition and access. Why is that such a problem?

Re: Bybit loses $1.5B in hack

#302

Post by desumeku »

malfist wrote: post #258
xnickb wrote: post #207

Earlier quoted context omitted.

I'm nowhere near expert on any of the things below, but: My gut tells me if an exchange makes as much money as you suggest, people involved in that exchange are making even more profit from the said exchange, otherwise they wouldn't engage. The whole thing being literally money out of thin air, it feels like a huge bubble that should inevitably burst bringing down _ a lot _ of collaterals with it.

You might be interested in reading Warren Buffett's reasoning for not investing in crypto. Basically he says crypto produces no goods, products or services, and it's only value comes from finding a "bigger fool" to pay a higher price than you did for it. It's value is from speculation assuming future speculation will assume more future speculation

It's easy to agree with this position if you deliberately ignore that the "service" crypto provides is a decentralized, censorship-resistent, self-contained, global system of finance that is designed specifically for the modern internet age and which does not need to be under the control of any particular nation-state or company in order to function.

Otherwise, it is clear where the value comes from.

Re: Bybit loses $1.5B in hack

#303

Post by gosub100 »

bryceneal wrote: post #243
gosub100 wrote: post #233

Earlier quoted context omitted.

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?

Yes it is. Me and many other people.

Re: Bybit loses $1.5B in hack

#304

Post by desumeku »

aaronmdjones wrote: post #276
kzrdude wrote: post #245

Earlier quoted context omitted.

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

So it was a lukewarm wallet?

What supposedly happened is that malware was installed on every multisig key signer's device and then the hacker showed them all a fake transaction that looked legit but actually changed the smart contract of the cold wallet to give him access.

Re: Bybit loses $1.5B in hack

#305

Post by desumeku »

stouset wrote: post #106
zer0x4d wrote: post #103

I'm a huge crypto believer but I can admit that we don't have a serious system if a person can just transfer over $1.5B from a well known crypto cold wallet to different accounts with nothing flagging it and no way to reverse it.

In the face of the never-ending list of these kinds of events, the laughably impossible task of average nontechnical individuals protecting their own assets (and the consequence of total financial ruin when they fail to do so), the overwhelming number of and size of scams, rug pulls, fraud, outright Ponzi schemes, and on and on and on… what exactly is left to keep anyone a “huge believer”? Put differently, it’s been…

Maybe when it stops escalating and getting bigger and bigger and continually growing over time?

Re: Bybit loses $1.5B in hack

#307

Post by desumeku »

FabHK wrote: post #266
simpsond wrote: post #204

Earlier quoted context omitted.

My faith would shake when scams, rugs, fraud, and ponzis completely stop outside of crypto.

The "oh but there's crime in fiat" argument holds no water. Sure, HSBC facilitated money laundering and drug trafficking in Mexico. And when it came out, the fiat response was a huge outcry and putting a stop to it. The crypto response is to say "screw the laws, let's go all in with money laundering and drug trafficking". It's like noticing that kitchen knives are occasionally used for murder, and then concluding tha…

Fiat is not indispensable, hello. Did you forget that human societies used to primarily have metallism-based economies before central banks managed to entrap the entire world in a system of debt slavery?

Re: Bybit loses $1.5B in hack

#308

Post by DrillShopper »

desumeku wrote: post #299
owlninja wrote: post #246

Earlier quoted context omitted.

I saw a quote somewhere: >Crypto is speedrunning the entire evolution of finance to end up at the same place

I sure hope we don't end up in the same place where the monetary system is only being held up by the fact that there is more debt than money creating an endless competition for the limited quantity of money that exists in order to pay off ever-increasing debts and expenses with a currency that is continually debased throughout the process.

We're already there. That's called "going to the moon". That's the end state. Get in, ride the rise, and then sell out and tell others to "buy the dip".

Re: Bybit loses $1.5B in hack

#309

Post by DrillShopper »

malfist wrote: post #258
xnickb wrote: post #207

Earlier quoted context omitted.

I'm nowhere near expert on any of the things below, but: My gut tells me if an exchange makes as much money as you suggest, people involved in that exchange are making even more profit from the said exchange, otherwise they wouldn't engage. The whole thing being literally money out of thin air, it feels like a huge bubble that should inevitably burst bringing down _ a lot _ of collaterals with it.

You might be interested in reading Warren Buffett's reasoning for not investing in crypto. Basically he says crypto produces no goods, products or services, and it's only value comes from finding a "bigger fool" to pay a higher price than you did for it. It's value is from speculation assuming future speculation will assume more future speculation

Dunning–Krugerrands

Re: Bybit loses $1.5B in hack

#310

Post by DrillShopper »

Gorkys wrote: post #236
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?

In crypto, there is the concept of the "fictional reserve" which can be used in situations such as this.

If it's big enough you can even get the devs to fork the blockchain to reset things (see The DAO)

It's not that crypto folks don't want some protection from hacks or fraud - the just think it should only be for the rich.

Post reply on HN