Bitfinex Users Not Able To Control There Funds

Bitfinex users have reported about their funds. The users are not able to control their funds. As per the sources suggest funds worth of 430 million USD …
bitfinex exchange

Bitfinex users have reported about their funds. The users are not able to control their funds. As per the sources suggest funds worth of 430 million USD in the form of bitcoin and ethereum are been found missing from the exchange cold wallet.

The missing funds include around 1,094,172 ethereum tokens which have a value of $183 million and 42,645 bitcoin tokens which have a value of $247 million as per the investigation conducted.

However the amount will be much more than 430 million USD, since other Altcoins are included in this value. The data of other Altcoins are still not available from the BITFINEX Exchange.

Large number of users has reported that they are not able to withdraw fiat currencies from the exchange.

Some are –

  • Songxiaodai said he has pending Us Dollars withdrawals from past one month.
  • Divxup said he has contacted the support team about cancelling his withdrawal request and they were unable to do.
  • Duranimalz said he had requested the exchange to unfreeze his account so that he can withdraw funds but no actions have been taken.

Recently Tether ltd had involved in series of legal issues regarding the apparent loss of 850 million USD and recently it was reported that stable coin is just 74% paired with cash equivalents.

On 10-05 Bitcoin was trading at $6,314 showing gain of 3.5% with the market cap of 111 billion USD and Ethereum was trading at $173 showing gain of 1.2% with the market cap of 18.3 billion USD.

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Bitfinex Users Not Able To Control There Funds
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Bitfinex Users Not Able To Control There Funds
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Bitfinex users have reported about their funds. The users are not able to control their funds. As per the sources suggest funds worth of 430 million USD in the form of bitcoin and ethereum are been found missing from the exchange cold wallet.
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cryptbuzz
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Top 5 Biggest Crypto Exchange Heists in History

Losing around $60 million in cryptocurrencies including Bitcoin, Bitcoin Cash, and MonaCoin, Zaif was the second major Japanese exchange to lose …
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Christina Comben| May 09, 2019 | 21:00


The news of the Binance hack left the cryptocurrency industry rattled. Although, it turns out that a massive $40 million’s worth of BTC doesn’t even register this heist among the worst. Check out the five biggest exchange hacks in crypto history.


The 5 Biggest Exchange Hacks in Crypto

5 biggest crypto exchange hacks

As you can see from the above image, the Binance hack comes in a measly sixth place. There’s no doubt that the world’s biggest cryptocurrency exchange will recover from its stinging loss.

The hacker only targeted Binance’s hot wallet which holds just 2 percent of all the exchange’s BTC. In fact, CEO Changpeng Zhao (CZ) is already chalking it up to a “lesson learned” (albeit an expensive one).

cons: 4 While it is a very expensive lesson for us, it is nevertheless a lesson. it was our responsibility to safe guard user funds.

We should own up it. We will learn and improve.

As always, thank you for your support!

— CZ Binance (@cz_binance) May 8, 2019

And, it could have been way worse–just ask Coincheck, the Japanese exchange that still takes first place in the biggest exchange hacks in crypto history.

1. Coincheck (Jan 2018)

According to cryptocurrency intelligence agency CipherTrace, 2018 eclipsed all other years as far as exchange hacks go, with Coincheck leading the way. To kickstart the year that would also be the longest bear market for the industry, Coincheck was hit by hackers stealing more than 500 million NEM cryptocurrency (around $530 million).

NEM stuck the blame firmly on the ‘relaxed security measures’ of Coincheck even though it was only its cryptocurrency XEM that was stolen. No hard fork was carried out and Coincheck, for now at least, retains the top place on the list.

2. Mt. Gox (Feb 2014)

Eclipsed in the dollar amount stolen, the Mt. Gox hack is still undoubtedly the most infamous exchange hack of all time. It’s still the largest Bitcoin heist, in fact, with an eye-watering 850,000 BTC snatched by hackers (around 6 percent of all available BTC at the time).

Up until the start of 2014, Mt. Gox handled some 70 percent of all the world’s BTC transactions. By February of that same year, it was declaring bankruptcy.

While some 200,000 of the stolen BTC was recovered, other users remain hopeful of recuperating their funds. A trustee Nobuaki Kobayashi is now in possession of over 141,000 BTC and 142,000 BCH and is supposed to return them to their rightful owners. The question is, when?

3. BitGrail (Feb 2018)

Shady as they come Italian exchange BitGrail lost some 17 million Nano tokens worth around $170 million in the third biggest exchange hack in crypto history.

While the hack was revealed in 2018, the plot around the story soon began to thicken as users became aware that the exchange had been targeted previously and was insolvent for a number of months prior.

Moreover, its owner Francesco Firano tried to place the blame on Nano, requesting a hard fork to recuperate the funds. This was denied and the blame was laid squarely on BitGrail. In 2019, a court ordered Firano to return the missing funds to BitGrail customers.

4. Bitfinex (Aug 2016)

Controversy over Tether and one of the largest ever exchange hacks in crypto history, it’s a miracle that Bitfinex is still standing. The hack happened in August 2016 when more than 120,000 bitcoins were stolen causing the value of BTC to plummet within hours of the attack.

Users were compensated, however, unlike in many other situations, but they were paid out in BFX tokens rather than BTC.

5. Zaif (Sept 2018)

Losing around $60 million in cryptocurrencies including Bitcoin, Bitcoin Cash, and MonaCoin, Zaif was the second major Japanese exchange to lose funds after Coincheck earlier in 2018. This lead to Japan’s FSA to carry out an investigation of the incident.

They later found out the much of the stolen funds were traded on exchanges including Binance and Huobi. Hackers did this by creating hundreds of accounts and depositing just 2 BTC in them all, thus not triggering Binance’s AML red flags.

Don’t Keep Your Funds on an Exchange

We’re watching history repeat itself time and again. Hackers already stole over $356 million from exchanges in Q1, 2019.

The Binance attack is just another in a never-ending security breach waiting to happen and the moral of the story is always the same. Don’t keep your funds on an exchange. If you do, you’re putting your cryptocurrency at risk.

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Inside the Binance and Bitcoin Blockchain Reorg Drama: Random Tweet Stirs Up Community Frenzy

The economics of a reorg on this scale simply does not make sense for such a (relatively) small sum. It would have been far more interesting to see if …
Inside the Binance and Bitcoin Blockchain Reorg Drama: Random Tweet Stirs Up Community FrenzyInside the Binance and Bitcoin Blockchain Reorg Drama: Random Tweet Stirs Up Community Frenzy

When Binance revealed that somewhere in the region of $40 million dollars worth of Bitcoin was stolen from them, it caused the usual reactions from the community. News articles were written Binance’s security was questioned, but overall it was just another hack – and not even a significant one compared to some in the past.

The point is that it did not really shake the community in the manner that Mount Gox did. Binance took a hit, no customers lost their coins and everything continued on as normal… or it would have if not for a tweet by Jeremy Rubin.

Rubin, who has worked on both Bitcoin and Stellar’s core code, made the point that if Binance reveals the private keys for the hacked coins, they could use the miners to reorganize Bitcoin to the detriment of the hackers.

What this would do, is allow the miners to send the money their way. It would cost the network, but the benefit would be to get the Bitcoin out of the hands of the hackers, as well as not being considered a true rollback. It would not be a large scale reversal of transaction history, just an adjustment.

CZ AMA gives definitive answers

The Binance CEO held a regular AMA, where the question was repeated to him whether Binance would undergo such drastic action. The question caused an eruption of speculation in the community but the idea was dismissed with finality by the Binance CEO.

Zhao did clarify the position that Rubin had in a tweet saying that the construction of such a transaction would not be reverting the money back to Binance or rolling back the transaction. It would simply be done to redistribute the coins to miners.

Zhao also clarified during the AMA why he thought it would not be a good idea. His first reason was that Bitcoin is as close as we have to a credible cryptocurrency and that an action like this undertaken by a private company would harm that credibility.

He also mentioned that there was the distinct chance of a massive split in the community, unlike anything seen before. This would also be damaging to the long term future of Bitcoin and as one of the leading exchanges, controlling just under 40% of Bitcoin trading volume, it would hurt Binance as much as the entire ecosystem.

He was also very introspective about the event saying that the hackers used previously unknown methods to break into their wallets and that while this was an expensive lesson, it was a lesson nonetheless.

The weaknesses in the design of Binance that had caused user confusion were not seen before the hack and were now in the open. Anything that can make Binance better has to be used to its full potential.

Community backlash to idea shows where the community stands

While the crypto community is no stranger to forks and reorganizations, many in the community believe that it should only be kept for the direst of circumstances. Many are also of the opinion that a stable, credible cryptocurrency should avoid it at all costs.

While proponents of the reorg used Ethereum as an example of a “good” cryptocurrency that underwent a reorg, others were quick to point out that when that happened, Ethereum was barely 5 months old and a relative baby compared to the industry behemoth it became later (and remains today).

Others pointed out that the overall loss to Binance would be around 7250 BTC just to incentivize the miners to work for them. That’s not even taking into consideration that mining costs 1800 BTC a day. The economics of a reorg on this scale simply does not make sense for such a (relatively) small sum.

It would have been far more interesting to see if someone had attempted to do this in the larger breaches such as the Mt. Gox incident. However, the vast majority of the community is against the idea due to the principle that it is against the philosophy of the technology.

Adam Back, CEO of Blockstream, explains this perfectly. He doubts that anyone int he industry from miners to developers has ever even thought about it. He gave several examples of hacks that were greater and even recent ones such as the Bitfinex hack where the company lost $72 million.

All in all, what would have been a normal day in the business of cryptocurrency turned out to cause a severe storm of opinions and has the community on edge.

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Despite Bullish Momentum, It May Be Another 18 Months Before Bitcoin Climbs Back to Its All-Time …

Despite a bout of sideways trading in the crypto markets, Bitcoin has continued to extend its upwards momentum that was first established in …

Despite a bout of sideways trading in the crypto markets, Bitcoin has continued to extend its upwards momentum that was first established in early-April, and has now moved above the key $6,000 level that many analysts view as a critical price level for BTC to hold above.

Although this upwards momentum is certainly positive, one industry expert believes that it may be another 18 months before the cryptocurrency climbs back above its previously established all-time-highs that were set in late-2017 at roughly $20,000.

2021 May Be the Year of Fresh All-Time-Highs for Bitcoin (BTC)

At the time of writing, Bitcoin is trading up over 2% at its current price of $6,050, up significantly from its weekly lows of $5,500.

Over the past month, BTC has incurred significant upwards momentum that is showing few signs of faltering, as it has continuously been able to climb higher, even in the face of fairly significant developments that would typically be deemed bearish.

The upwards momentum first began in early-April when Bitcoin was trading in the low-$4,000 region, before it incurred significant buying pressure that boosted its price up to $5,400, at which point it began trading sideways before breaking above $6,000 late-yesterday.

Mike Novogratz, the CEO of Galaxy Digital and a former Goldman Sachs partner, recently spoke to CNN during the SALT conference Las Vegas, explaining that he expects Bitcoin’s price to triple by 2021, which would lead it towards its previously established all-time-highs.

Novogratz added that “Out of the rubble, bitcoin has popped back up,” referencing its 2018 lows in the low-$3,000 region, further noting that it would take something like a sudden shift in regulation or a devastating crypto exchange hack to “shatter this newfound confidence.”

BTC May Struggle Around $6,000 Before Surging Higher

Novogratz recently laid out a slightly more technical case for Bitcoin in an interview with Bloomberg, explaining that he expects BTC to “struggle around $6,000” before surging significantly higher.

Although it remains unclear as to whether or not $6,000 will be an easy level to decisively break above, it is important to note that the low-$6,000 region is where BTC traded sideways at for nearly two months before breaking down in mid-November to lows of $3,200.

Because BTC has been able to return to this price level, Novogratz explained that he is more confident about the cryptocurrency now than he has ever been in his career.

“I feel better about Bitcoin today than I have at any time in my career,” he bullishly said.

As Bitcoin’s price action continues to unfold and it grows clearer as to whether or not the crypto is able to decisively form support at the $6,000 level, traders and analysts alike will likely garner greater insight into whether or not the markets are truly able to begin their journey back towards their all-time-highs, or if further consolidation is imminent.

Featured image from Shutterstock.

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Bitcoin Premium: why is the price of BTC always higher on Bitfinex?

By this point many are probably aware that the crypto exchange Bitfinex often operates with a “premium” on the price of Bitcoin, not to mention other …

By this point many are probably aware that the crypto exchange Bitfinex often operates with a “premium” on the price of Bitcoin, not to mention other currencies. What most are less aware of is why this phenomenon occurs. Recently the Bitcoin premium on Bitfinex soared to over $300 after the latest news concerning Tether came out. Why is there such a difference from other exchanges? Why did the negative news make the premium go up? Will it always be this way? Let’s take a look.

Why is there a Bitcoin premium?

For starters, let’s discuss why there is a premium in the first place. It seems the premium is basically in existence because of the difficulty users have in moving fiat funds off of the platform. Even as described by the exchange itself, the process sounds rather arduous:

“To withdraw fiat currencies (USD, EUR, GBP, JPY), your account first needs to be verified. After verifying your account, simply make your way to the withdrawal page, pick a currency (USD, EUR, GBP, JPY) and fill in your wire information (name, address and banking details).

The fee structure for withdrawing fiat currencies is 0.1% of the amount withdrawn, with a minimum $60.00. Standard withdrawals are processed within 5-15 days.”

Alternatively, moving crypto off of the exchange is notably quicker and more straightforward. Because of this, users will usually use crypto, often Bitcoin, as a means to get quicker access to their money. This generally drives the price up, and anyone wishing to get out will still have to accept the premium if they don’t want to wait two weeks or more for their funds.

As to why the price went even higher on the Tether news, it is simply a matter of even more people wanting to either get out of Tether or off of the exchange altogether.

Here is an image, taken from CryptoGlobe, that compares how four major exchanges responded when the Bitfinex/Tether news broke:

Notice how on Bitfinex the price quickly “recovered” but didn’t do so anywhere else, though Binance it seems had more of a partial recovery. Binance also has a heavy Tether presence, so the belief is that what we are actually seeing is people exiting Tether for Bitcoin, which is boosting prices on exchanges where that is possible.

The following tweets explain what is happening fairly effectively:

The $BTC price difference on Bitfinex is explained perfectly by @jgarzik “It’s exit buying. To get out of an exchange, one must buy “hard currency” – BTC – when fiat withdrawal methods start failing. The BTC price is therefore higher at dying exchs…” #crypto#trading

— Andy Craven (@andyscraven) April 29, 2019

People on bitfinex have to buy bitcoin to get out of tether. This increases the price of bitcoin on bitfinex comparative to other exchanges!

— Jacob Pickle (@JPicL) April 28, 2019

As to whether it will always be this way, the answer is yes as long as the same conditions exist on Bitfinex. Should fiat withdrawals become notably smoother on the exchange it likely would partially fix the problem, but some may debate that the very existence of Tether also artificially affects the price due to the mechanics just described.

Ultimately it is up to each user if they want to use the Bitfinex platform and therefore deal with the premium price. Once the reasoning behind it is understood, most users could likely see that it would have minimal effect on their profits once fully factored in, especially if they are only trading on Bitfinex. Like it or not, the premium isn’t likely going anywhere soon, unless of course some major changes come to the platform. Will that happen? Stick with Chepicap for all Bitfinex updates!

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