Weekly E-mails:  Crypto Trading Strategy 5 Weeks of Onboarding Reads. Latest Airdrops (Thu 7 AM EST). Or all of it.

Dismiss   Pick Your Preference
This site uses cookies (More).

 

ChrisJ (Bitfinex) on the Tether hack and Bitfinex transparency - #CryptoTrading

A shortened transcript with the most important info from the session with timestamps to relevant parts of the footage
Blog
  .  Published  · By KarlVonBahnhof

On December 3rd, ChrisJ who works for Bitfinex talked on Whalepool TS about Bfx transparency issues, the recent Tether hack and more.

The Tether hack will need to be reported to law enforcement which was the reason why ChrisJ removed the warrant canaries from his Twitter account - an event that left people wondering whether Bitfinex is under subpoena.

The 51 minutes of footage from Whalepool is available on Youtube – by the way, it’s still alright at 1.5x speed.

Below a substantially shortened transcript of the most important info from the first part of the session with timestamps to relevant parts of the footage. Links of timestamps open in new tab.



Tether Hack

On the 19th November about 30.9 million USDT sent from Tether single-sig hot wallet.

  • What happened to the USD that were backing the stolen USDT? Nothing - The USDT were created before the backing money arrived, the Tethers were sitting in the treasury wallet waiting to be allocated. 00:59
  • Details of the hack, 02:13: The money didn’t belong to a customer, there are no customer damages – the tokens were unassigned and have been frozen 38:05
  • The hacker probably used a malicious binary, 02:23
  • The address of the Tether treasury wallet, 09:59 look for it in the text chat.
  • Why wasn’t the treasury wallet multisig? 10:49 It was a newly created wallet that wasn’t used as treasury before (or after) the hack. Normally, Tether storage is multisig but this particular address was single-sig. It is not known why it was single-sig.
  • The server was isolated from Bitfinex servers, 13:35, and set up by different dev team than the team that works on it now.
  • The server separation is also why the hacker couldn’t steal other cryptocurrencies. As a rule, different currencies live on different servers so that they can be updated easily and they don’t get poisoned from one another if there’s malicious code, 45:50.

Tether FUD

  • Flibbr suggest a live stream with someone from Bitfinex to show the money is in the bank accounts. 15:35 (Probably not possible - banks do not want that spotlight, people are bound by NDAs.)
  • Most of the Tether FUD is anecdotal, screenshots etc, not really evidence or proof … 22:15 … plapps suggests Bitfinex deals with it better in terms of PR because the crowds go too far with their conspiracies. ChrisJ calls for more ideas on how to clear this situation (how to prove the Tethers are backed by USD and do it in a way that is not damaging to Finex nor its customers) – but says he cannot keep up with the tons of twitter messages (@MrChrisEllis) he’s getting. If you have an idea, Disqus comments here below are open.
  • 35:05 Details of the Tether creation and USD backing - often, the entity that pays for the USDT creation is Bitfinex because of financing of a customer transaction via USDT. (Your USD balance on Bitfinex is not automatically USDT.)
  • Since the stolen Tethers were frozen, there can be a wild unfounded speculation that the hack was either a test or a stunt to make Tether look bad, 38:33.
  • 39:13 There are security updates for Tether underway.
  • ChrisJ calls for allowing the benefit of the doubt. 44:18

About the author

Written by KarlVonBahnhof

KarlVonBahnhof also on Reddit, Chris belongs to the crypto trader class of 2013. Located in the Americas most of the time, you're most likely to meet at r/BitcoinMarkets though.

 

Last added to Crypto Airdrops, Bounties & Opportunities
Name Date How to access Official URL Additional Info
Blockstack 🔥 Free crypto airdrop Jan - Feb 2020 The webwallet blockchain.com is giving away free Stack $STX crypto to their Gold users. The Gold level requires an ID scan and selfie. details make acct
PRIMEDICE Free crypto promotion Until 28 Dec 2019 Deposit more than $5 in BTC, ETH, XRP, BCH or DOGE - get free $3 in LTC (credited after 24 hours). No rollover condition or restriction! details make acct
Cloudbet Turbo Thursday Reload Bonus Every Thursday between 05:00-23:59 UTC Make a deposit of 0.1 mBTC or more today, Cloudbet gives you a 100% Reload Bonus of up to 50 mBTC/1 BCH. Remember you must activate the bonus in your player dashboard before making a deposit for the bonus to be credited! The bonus is only available for the Casino, not the Sportsbook. details make acct
New non-custodial anonymous peer-to-peer Bitcoin trading Opened 19 Nov 2019 If you miss the heyday of LocalBitcoins where anyone could buy BTC locally for cash (which has been banned since this summer) and anonymously (now site-wide KYC is required, plus allegedly LocalBitcoins have been working with three-letter agencies), since 19th November you have the chance to go back in time and buy your corn without ID again - at least for some time. You know that good things like this don't last ... The former ETH marketplace LocalEthereum rebranded to LocalCryptos and offers local and anonymous BTC trading with fully automated escrow that is built natively on BTC blockchain - because bitcoin's smart contract scripting capabilities are good enough for simple stuff like escrows. You can even import your vendor reputation from LocalBitcoins. The reputation import is done via adding a unique code to your LBC profile page, not by linking anything directly, but still in case you like your privacy it's probably only a good idea id you never ID'd on LocalBitcoins. details make acct
Crypto Flowers dApp Game event 12 - 22 Dec 2019 Play the Crypto Flowers TRON version of the dApp game any time between 12 and 22 December to enter the Prize Pool of 100`000 TRX. Just collect and breed flowers and have a chance to win prize pool, no special action needed. details make acct
POOL-X exchange listing promo Daily until listing POL has a random twitter draw of users who post a POOL-X graphic design every day until their token listing on the KuCoin exchange. You need to sign up via Google form and have a KuCoin account. form make acct
Verasity New Triviata Competition November 5 at 00:00 UTC - November 20th 00:00 UTC Verasity is a token-based platform for the attention economy. They always engaged a lot with the community and organized several airdrop and competition campaigns so far. The current two-week campaign relates to the Triviata app (iOS/Android). Sign up and enable your game participation in the app profile, and you get the chance of winning prizes with 4000 USD in total. Even if you don't win though, participating will earn you tokens that can be staked in the official wallet for over 30% yearly earnings. join about
Bethereum Price Pool on VK November 2019 There are regular competitions with the total pool of prizes worth 40K Bether if you join the gaming platform's VK channel. details make acct
Brave New Coin Challenge Until the end of the year The crypto market data provider is giving away small amount of their tokens if you add people to their telegram group. register telegram
FanEspo Big Competition (ERC20) All the time Fanespo is launching a new promotion contest worth $500 in FAN tokens. Details will pop up on you when you sign up on site. Overall, the eSports platform FanEspo is giving away the total of $1.6 million of tokens in contests. You need to have a FanEspo account. details make acct
Atomars Opportunity Launch promo There is a new altcoin axchange launched that now offers zero-fee trading, and possibly thinner markets for the market makers around. details make acct
Keybase Stellar Lumens Drop 11 September 2019 & Onwards The Keybase team announced a surprise airdrop worth 21 USD in XLM to all account holders who ever installed the Keybase app. To get the Lumens, you need to sign in again and claim them - you should have received a bot message with instructions. Keybase has been funded by the Stellar Developer Foundation for years and so this collab is not a one-off. You can choose to keep participating in the Lumens airdrop by using Keybase, the total dollar worth each user can get is 500 USD. New accounts can still participate as long as they have a Github or HackerNews account created before 9 September 2019. more join
BlockWage Airdrops + Bounties Recurring Platform for freelancers marketplace. Airdrops randomly announced via Discord, there's also the possibility of Masternodes. join web
Vaultoro Token Launch Promo September 2019 The crypto-gold exchange Vaultoro has been around for years, getting attention in the 2015 bear market and tagging along through the subsequent bull run. They are now launching their own exchange token which you can get for free if you don't have an account yet. Every new sign up with basic ID verification gets 200 VAULT tokens. homepage make acct