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FTX faces potential hack, sees mysterious outflows totaling more than $600M

coindesk.com

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Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#641

Post by boppo1 »

zen21 wrote: post #587
X6S1x6Okd1st wrote: post #541

The hacker has spent the last 11 hours slowky and incrementally converting all the various tokens they got to ETH. They've been using a variety of different defi exchange and have eaten large slippage fees, at least once over 5M lost in slippage. We're not seeing any else, e.g. laundering through another exchange, splitting into different accounts, automating the liquidation of tokens to ETH, off loading ETH into a c…

> The on chain activity makes this look like an individual who did not prepare extensively before doing this or doesn't have the skills to use automation/operational best practices How common is the knowledge of these best practices?

A hacker who got in from the outside would probably be sophisticated enough to at least 1. automate transfers 2. launder through monero or a tumbler or something

This looks like someone who barely understands crypto because all of the transfers can be traced, and since they're apparently working manually and slowly, the audit-surface is huge.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#642

Post by MrMan »

bonestamp2 wrote: post #609
X6S1x6Okd1st wrote: post #541

The hacker has spent the last 11 hours slowky and incrementally converting all the various tokens they got to ETH. They've been using a variety of different defi exchange and have eaten large slippage fees, at least once over 5M lost in slippage. We're not seeing any else, e.g. laundering through another exchange, splitting into different accounts, automating the liquidation of tokens to ETH, off loading ETH into a c…

What are the chances that this is an insider and not an outsider? I ask because the timing of this "hack" is obviously a little suspicious.

almost surely an insider.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#644

Post by biztos »

X6S1x6Okd1st wrote: post #541

The hacker has spent the last 11 hours slowky and incrementally converting all the various tokens they got to ETH. They've been using a variety of different defi exchange and have eaten large slippage fees, at least once over 5M lost in slippage. We're not seeing any else, e.g. laundering through another exchange, splitting into different accounts, automating the liquidation of tokens to ETH, off loading ETH into a c…

I'm sure this is a total noob comment but I love how the account is named "FTX Accounts Drainer" on Etherscan:

https://etherscan.io/address/0x59abf3837fa962d6853b4cc0a1951...

[Edit: and also the Heist label is very useful!]

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#645

Post by pclmulqdq »

themihai wrote: post #447
headsoup wrote: post #38

Earlier quoted context omitted.

Lol, a 'hack.' An unfortunately extremely convenient one that I'll almost guarantee specifically took customer funds, you know, after the bros already took their first cut.

It happens on Wall St as well but more "subtle". Retail investors and tax payers have always been the bag holders.

Wall Street doesn't rug pull people. It sells them bad bets and takes the opposite side of those bets. There is a massive difference.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#646

Post by [deleted] »

douglaswlance wrote: post #133
YossarianFrPrez wrote: post #116

Regardless of whether you are pro- or anti- crypto, the collapse of FTX, SBF's bubble bursting in a rather extreme fashion, and now this hack are more nails in the coffin for mainstream support. I am no fan of crypto myself, but it's interesting to think what would have to happen for crypto to burnish its image. Would key people have to voluntarily form some sort of coordinating council and self-regulate? Would they…

This isn't a crypto failure. Crypto works. This is a human failure. FTX didn't collapse because of the technology. It collapsed because of human error. The fix is rather simple. If an organization looks like a bank and quacks like a bank; it should be regulated like a bank.

[deleted]

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#647

Post by [deleted] »

bonestamp2 wrote: post #609
X6S1x6Okd1st wrote: post #541

The hacker has spent the last 11 hours slowky and incrementally converting all the various tokens they got to ETH. They've been using a variety of different defi exchange and have eaten large slippage fees, at least once over 5M lost in slippage. We're not seeing any else, e.g. laundering through another exchange, splitting into different accounts, automating the liquidation of tokens to ETH, off loading ETH into a c…

What are the chances that this is an insider and not an outsider? I ask because the timing of this "hack" is obviously a little suspicious.

[deleted]

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#648

Post by pdntspa »

pinkfairy10 wrote: post #591
xwdv wrote: post #583

Earlier quoted context omitted.

Personally I liquidated all remaining crypto. I think these are the end of days for crypto and before the end of this year anyone still holding crypto assets will find them significantly less valued. There is no path to increasing value.

Losing faith just because a CEX goes down means you were never interested in it beyond speculation to begin with it.

Did you just call GP a paper hands?

Because any profitable trader will tell you just how stupid that logic is.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#649

Post by VagueMag »

themihai wrote: post #639
VagueMag wrote: post #618

Earlier quoted context omitted.

Why would the attacker move the funds to any remotely censorable coin like DAI?

I think he tries any avenue available. Even if 50% is lost it's still a good trade.

I guess I'm really ignorant of the whole DeFi ecosystem and how it works and so maybe this isn't feasible, but I would think keeping 100% of Bitcoin and Monero (even if their prices crash a further 80%) would be better than going into these very easily controlled stablecoin.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#650

Post by mdolon »

tromp wrote: post #374
n0tth3dro1ds wrote: post #255

Earlier quoted context omitted.

> It’s unfortunate that what started out with altruistic motives Are you actually buying into SBF’s pathetic ideologies? Or are you more referring to Satoshi’s white paper when you refer to “altruistic motives”. I can’t understand how anyone would take SBF seriously. He’s a smug charlatan who converted funny money to real money so that he could dump it into politics for his own aims, all while calling his actions “al…

> Or are you more referring to Satoshi’s white paper when you refer to “altruistic motives”. There's little altruistic about an emission that allocates half of all supply (first four years) going to early miners including Satoshi himself, and leaves only crumbs for later generations.

This was my biggest “a-ha” realization around crypto, that the distribution model is utterly and irreparably broken for the most popular currencies. Whenever I bring this up with BTC/crypto maximalists their counterpoint is that fiat is also unevenly distributed and that it’s not a novel problem. The disconnect is truly puzzling.
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