hacker bitcoin

Bitfinex hacked Trading will be halted as well as all crypto deposits/withdrawals

Bitfinex hacked Trading will be halted as well as all crypto deposits/withdrawals

Today we discovered a security breach that requires us to halt all trading on Bitfinex, as well as halt all digital token deposits to and withdrawals from Bitfinex.

We are investigating the breach to determine what happened, but we know that some of our users have had their bitcoins stolen. We are undertaking a review to determine which users have been affected by the breach. While we conduct this initial investigation and secure our environment, bitfinex.com will be taken down and the maintenance page will be left up.

The theft is being reported to—and we are co-operating with—law enforcement.

As we account for individualized customer losses, we may need to settle open margin positions, associated financing, and/or collateral affected by the breach. Any settlements will be at the current market prices as of 18:00 UTC. We are taking this necessary accounting step to normalize account balances with the objective of resuming operations. We will look at various options to address customer losses later in the investigation. While we are halting all operations at this time, we can confirm that the breach was limited to bitcoin wallets; the other digital tokens traded on Bitfinex are unaffected.

We will post updates as and when appropriate on our status page (Bitfinex.statuspage.io) and on the maintenance page. We are deeply concerned about this issue and we are committing every resource to try to resolve it. We ask for the community’s patience as we unravel the causes and consequences of this breach.

 

I would be interested to read about how using bitgo is safer than keeping say 90% of user funds offline, safe from theft.

Presumably you have full access to the bitgo wallets, because you need to be able to take BTC from one user and give it to another when a trade is done. At first glance this would appear less safe than keeping most coins offline.

It’s more like better auditability than security I think. Each user can check his own balance onchain at a maximum of 1 day’s delay. So wrt ” take BTC from one user and give it to another when a trade is done.” they settle each day and presumably in cooperation with BitGo.But it’a 2-of-3 and the other key is in BFX’s cold storage, so if BitGo is not compromised, then perhaps BFX’s cold storage is.

 

Could bitgo be compromised?

You have multisig vs. hot/cold wallet. Does this suggest that everything was breached? Have you lost nearly all bitcoins in custody?

We have segregated customer wallets, not hot/cold as each user has their own wallet. We can’t release details about the breach at this time as we’re still investigating, but no, we did no lose all or nearly all of the bitcoin.
We may need to settle open margin positions, associated financing, and/or collateral affected by the breach. Any settlements will be at the current market prices as of 18:00 UTC.

There was another exchange claimed “hack” when price dropped from 1200, we remember. Mt Bitfinex?

Right but with every other exchange tanking because of this hack traders holding long positions are now screwed

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