Bitfinex Heist Rings the Alarm of Bitcoin Centralization
The problems associated with operating a bitcoin exchange are not going away. On 2nd August, Bitfinex, one of the largest bitcoin exchanges by volume, became the latest to declare itself the victim of a major security breach. Accounts were hacked and consumer funds stolen. The ghost of Mt Gox stirred again. Yet despite the issues, exchanges still serve as gateways into bitcoin, the interfaces with the world of central banking. With large exchanges like Coinbase and Bitfinex dominating the trading scene, commercialization has come to the fore of what was once a grassroots movement spurred....
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In the end, the announcement of BFXCoin will not do much for users. This is nothing more than a digital IOU, with a promise by Bitfinex to repay customers. The recent Bitfinex hack has caused a lot of confusion among cryptocurrency enthusiasts, and will continue to do for the time being. However, it also became apparent the company will penalize all of its users to recover the losses somehow. Moreover, the exchange will issue its own coin which acts as an IOU. When Bitfinex got hacked, the Bitcoin community was greeted with yet another shock. As a result, the price per Bitcoin started to....
Zane Tackett, the community director and product manager at Bitfinex, has officially announced his resignation from the exchange. Tackett reveals his leaving is due to the significant amount of rumors concerning the Bitfinex hack this past August. ‘Insane Conspiracy Theories, Vile People, Incessant Vitriol’. On August 2 Bitfinex was hacked for 119,756....
Do not be mistaken in thinking this global fraud ring was decentralized by any means. Global fraud rings are nothing new under the sun these days. With the rise of deep web activity, criminals have created platforms to communicate and collaborate on a global scale. Avalanche, one of the largest global fraud rings in the world, has now been dismantled. This is a major boon for law enforcement agencies, although the threat is far from over. The Avalanche global fraud ring has been a thorn in the side of police officials for quite some time now. This project serves as a distributed cloud....
An individual claiming to be behind the recent Bitfinex (BFX) hack has announced the giveaway of 1,000 bitcoins, prompting those within the online community that this could be a money laundering scheme. Earlier this week, the Hong Kong-based bitcoin exchange revealed that it had suffered a major security breach after 119,756 bitcoins, amounting to around $65 million, had been stolen forcing a shutdown of its website and trading. The Reddit user, who goes by the name rekcahxfb, which spells bfxhacker backward, made the recent statement in a post that ‘one lucky winner will receive 1,000 BTC....
A recent blog post from Xapo called “What happens if Xapo gets hacked?” the company discusses the unfortunate Bitfinex heist that took place on August 2, 2016. Xapo says that if they were compromised the company would cover the losses from its own reserve. This is a glaring difference to the many exchanges that failed to reimburse their customers. Cold....