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"We don't use cold storage for bitcoin, since our implementation with bitgo we've used segregated customer wallets so that each user has their own bitcoin walle
by berberous 10y ago
"We don't use cold storage for bitcoin, since our implementation with bitgo we've used segregated customer wallets so that each user has their own bitcoin wallet." [0] This was hubris / stupidity.
[0] https://www.reddit.com/r/Bitcoin/comments/4vtuxo/bitfinex_security_breach_trading_will_be_halted/d61pqrm https://www.reddit.com/r/Bitcoin/comments/4vtuxo/bitfinex_se...
- makomk 10y agoNo, it was US futures trading regulations (though arguably that's the same thing). For regulatory reasons they had to provide "actual delivery" of the bitcoins in question, and the CTFC held that cold storage didn't count as "actual delivery". See http://www.cftc.gov/idc/groups/public/@lrenforcementactions/documents/legalpleading/enfbfxnaorder060216.pdf http://www.cftc.gov/idc/groups/public/@lrenforcementactions/...
- vamur 10y agoIn that case they should have required users to also login to bitgo and approve any withdrawals. Otherwise, what's the point of Bitgo?