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Bitfinex was required by US regulators to switch from cold storage to segregated per-user wallets. Something to do with margin requirements for commodities exch
by zekevermillion 10y ago
Bitfinex was required by US regulators to switch from cold storage to segregated per-user wallets. Something to do with margin requirements for commodities exchanges.
- jessaustin 10y agoCan you link to more detail about this? This doesn't seem like a requirement that would be enforced for other "commodities" exchanges? Also, it doesn't seem impossible to set up "per-user" cold storage?
- mrb 10y agoCorrect. Here is the source: "CFTC Regulation Prevented Bitfinex From Using Cold Storage" http://imgur.com/O46UNix http://imgur.com/O46UNix
- onestone 10y agoActually it is incorrect. Source - Zane Tackett (Director of Community and Product Development at Bitfinex): https://np.reddit.com/r/BitcoinMarkets/comments/4vtv1m/bitfinex_down_due_to_bitcoin_security_breach/d62v468 https://np.reddit.com/r/BitcoinMarkets/comments/4vtv1m/bitfi...
- zekevermillion 10y agoI think you are probably right, the CFTC is not going to mandate a specific technical approach. Still, an exchange could very well make a poor choice in an attempt to comply with regs whose intent is focused on something very different from the risks of wallet theft.
- paavokoya 10y agoThis reminds me of when Mt. Gox was hacked and it was later found out that US Homeland Security officers (who were undercover) stole coins and laundered them through another exchange. Seems like someone in the CFTC wanted some coins for themselves..