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> Investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges - unclear facts as other movements not clear. Will

by zeven7 4y ago

> Investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges - unclear facts as other movements not clear. Will share more info as soon as we have it. From FTX's general counsel[1], retweeted by FTX_Official. So that indicates it's not being sold off legitimately under some sort of liquidation proceedings. It could be insiders or it could be hackers. [1] https://twitter.com/_Ryne_Miller/status/1591281729125613570 https://twitter.com/_Ryne_Miller/status/1591281729125613570 Rumors on Twitter[2] are there was also an update just pushed to the FTX app. Concerns are the update may contain malware. It makes sense to uninstall the FTX app if you have it. [2] https://twitter.com/zachxbt/status/1591295039946493952 https://twitter.com/zachxbt/status/1591295039946493952

DavidSJ 4y ago
> Reports on crypto Twitter are that this is a hack Is that based on some evidence, or is it speculation?
- jmathai 4y ago
  Greed drives all of us to do things we normally wouldn’t. Given the nature of crypto, unless there’s a good reason to have the FTX app (say as opposed to using their website), then uninstalling it seems like very sound advice.
- zeven7 4y ago
  I reworded things to separate the first hand information (FTX_Official indicating they don't know what's going on) from speculation (app hacker rumors).
  - ackbar03 4y ago
    I saw an update on coindesk that they confirmed it was a hack on their official telegram channel? What a dumpster fire. But let's be honest, I think retail investors weren't getting anything back anyways. Probably only impacts creditors
    - headsoup 4y ago
      Lol, a 'hack.' An unfortunately extremely convenient one that I'll almost guarantee specifically took customer funds, you know, after the bros already took their first cut.
      - themihai 4y ago
        It happens on Wall St as well but more "subtle". Retail investors and tax payers have always been the bag holders.
        WeylandYutani 4y ago
        Do banks get hacked very often? They seem to have their security in order. Probably because they would have to reimburse their customers if something went wrong.
        ehnto 4y ago
        I imagine they do their best to run a tight ship yes, but I also imagine the fact that banks still run a lot of legacy pipelines and audits means it's also a little harder to find bugs in the apps and websites, that would actually let you achieve much.
        themihai 4y ago
        When the banks get bankrupt (i.e due overleverage, stealing/using customer's money etc) their customers get nothing back. A such example is MF Global. I'm not going into the whole story why banks and centralised/opaque finance is bad. Now the whole point of crypto was the tech behind it which was supposed to replace banks, exchanges and missuse of your OWN money. It's supposed to be an alternative to the trash financial tools we already use. The fact that people are using entities such FTX, Binance makes them deserve to be punished for their betrayal. Regardless if they use FTX or JP Morgan they pretty much deserve to experiment the shortfalls of centralised finance. I think it's part of the hello world example of what DeFi is trying to solve. One more thing: If FTX was hacked I bet it has almost nothing to do with the crypto technology. https://en.m.wikipedia.org/wiki/MF_Global https://en.m.wikipedia.org/wiki/MF_Global
  - largepeepee 4y ago
    Some call this a "hack", others who are brighter noticed that the recent FTX limited account unfreeze before they declared bankruptcy was to mask their own personal outflows as they siphoned money from a sinking ship
    - deleted 4y ago
      [deleted]
mudrockbestgirl 4y ago
> Reports on crypto Twitter are that this is a hack It's really unfortunate to get "hacked" with such bad timing. You steal customer money and file for bankruptcy but now the bad hackers, probably from the Bahamas as well, take whatever is left and cash out. Oh no! /s But it's alright, SBF said he's sorry.
- blitzar 4y ago
  In unrelated news SBF just found he had a bunch of crypto in his personal wallet. Totally not at all the pile of crypto that was last seen in the FTX wallet.
  - TedDoesntTalk 4y ago
    Yes, 1-2 billion in Sam’s personal wallets: “Reuters is reporting that at least $1 billion in customer funds at the exchange disappeared last weekend, citing two former senior employees briefed on the company's finances.” https://www.reuters.com/markets/currencies/exclusive-least-1-billion-client-funds-missing-failed-crypto-firm-ftx-sources-2022-11-12/ https://www.reuters.com/markets/currencies/exclusive-least-1...
  - deleted 4y ago
    [deleted]
    - deleted 4y ago
      [deleted]
  - tinus_hn 4y ago
    A minor problem with the blockchain is that the blockchain is actually an authenticated record of all transactions, so it’s pretty hard to hide where the crypto went unless you never actually exchange it or use it to buy something.
    - blitzar 4y ago
      His keys his coins
iblaine 4y ago
It’s unfortunate that what started out with altruistic motives, a method for decentralized anonymous asset exchange, is being derailed by opportunists. There was a time where a 51% attack was the biggest concern. All that said, I’m not surprised at where we are today.
- readthenotes1 4y ago
  Most of the rules of civilization are centered around preventing the 20% predators from devouring the 80% normal people.
  - lelanthran 4y ago
    Most? That's an understatement. The rules that aren't are so few they may as well be rounding errors lost in noise.
  - lowbloodsugar 4y ago
  - nathias 4y ago
    most are about 10% of predators trying to devour the other 10% of predators while preventing being devoured by the 80% of normal people
  - Gasp0de 4y ago
    And here I sit, thinking those rules were so that the 1% could take all the value the 99% produced.
    - baq 4y ago
      Nuclear weapons made this a bigger issue since it closes the option of last resort, which is war. See North Korea…
      - landemva 4y ago
        Not sure what you mean. After what was done to Libya after they gave up nukes, North Korea learned it can't disarm without subsequently being invaded and destroyed.
flylib 4y ago
FTX CTO Gary Wang as well has a lot of recent GitHub commit activity in last 2 days and now suddenly the site is hacked https://github.com/garywang https://github.com/garywang
- deleted 4y ago
  [deleted]
  - deleted 4y ago
    [deleted]
- zone411 4y ago
  How do you know it's him and not somebody else with the same name? I don't see any crypto projects.
  - bmitc 4y ago
    > I don't see any crypto projects. How do you know that? It says explicitly: "52 contributions in private repositories" between November 1 and November 11.
    - zone411 4y ago
      Obviously nobody knows what the private repos are. I was talking about public projects. "Gary Wang" is not an uncommon name. For example, here is another one with a Wikipedia page https://en.wikipedia.org/wiki/Gary_Wang https://en.wikipedia.org/wiki/Gary_Wang
      - bmitc 4y ago
        That's a good point. For whatever reason, I missed the first part of your comment. I did indeed operate under the assumption, incorrectly, that it was his profile. What's interesting is that a lot of the FTX people on the about page (https://about.ftx.com/ https://about.ftx.com/), including Gary Wang and Dan Friedberg have deleted their LinkedIn accounts, whereas they were available earlier. If they're deleting something so harmless, then who knows what else they are deleting and covering up.
deleted 4y ago
[deleted]
dna_polymerase 4y ago
Yeah and I’m sure the Apple App Store review process won’t catch the steal_private_keys_and_upload_to_china() method they inserted. Not that iPhone apps can’t do this in the first place. A lot of FUD right now to create even more chaos.
ForHackernews 4y ago
- przeor 4y ago
  - paranoidrobot 4y ago
    I can't speak for others, but personally my great dislike for it is the very high rate of scam-like behaviour. Every where you look, it turns out that someone is doing a 'rug pull', using customer funds in ways that don't line up with what they said publicly, or using misleading and deceptive behaviours to con others into giving them money.
    - fmajid 4y ago
      You're already doing them a great favor by conceding a possibility the scam rate is not exactly 100.0%.
  - iamacyborg 4y ago
    People dislike crypto because for many it has become incredibly obvious that it’s nothing more than a vehicle to scam and commit fraud. Yes, these things happen elsewhere but crypto is perfectly designed to facilitate these bad behaviours.
    - WanderPanda 4y ago
      Bitcoin is neutral and almost uninfluentiable by any single party. It‘s neutral, all the rules are out there, nobody has an information advantage. With Ethereum it‘s a bit more difficult because it has a history of being very transparent but there is still Vitalik as the BDFL. Almost everything else in „crypto“ is a mostly centralized system with the same points of failure as traditional financial systems (IoUs => bank rund). It is dishonest to conflate Bitcoin with all these possible scams. I hope Ethereum can establish itself as a neutral, natural law kind of system as well (removing Vitalik from the equation). Because on top of Ethereum more people can built trust less systems that can have bugs but that can‘t really be scams because all the mechanics are public and nobody can have an information advantage.

by zeven7 4y ago

DavidSJ 4y ago

> Reports on crypto Twitter are that this is a hack Is that based on some evidence, or is it speculation?

jmathai 4y ago
Greed drives all of us to do things we normally wouldn’t. Given the nature of crypto, unless there’s a good reason to have the FTX app (say as opposed to using their website), then uninstalling it seems like very sound advice.
zeven7 4y ago
I reworded things to separate the first hand information (FTX_Official indicating they don't know what's going on) from speculation (app hacker rumors).
- ackbar03 4y ago
  I saw an update on coindesk that they confirmed it was a hack on their official telegram channel? What a dumpster fire. But let's be honest, I think retail investors weren't getting anything back anyways. Probably only impacts creditors
  - headsoup 4y ago
    Lol, a 'hack.' An unfortunately extremely convenient one that I'll almost guarantee specifically took customer funds, you know, after the bros already took their first cut.
    - themihai 4y ago
      It happens on Wall St as well but more "subtle". Retail investors and tax payers have always been the bag holders.
      - WeylandYutani 4y ago
        Do banks get hacked very often? They seem to have their security in order. Probably because they would have to reimburse their customers if something went wrong.
        ehnto 4y ago
        I imagine they do their best to run a tight ship yes, but I also imagine the fact that banks still run a lot of legacy pipelines and audits means it's also a little harder to find bugs in the apps and websites, that would actually let you achieve much.
        themihai 4y ago
        When the banks get bankrupt (i.e due overleverage, stealing/using customer's money etc) their customers get nothing back. A such example is MF Global. I'm not going into the whole story why banks and centralised/opaque finance is bad. Now the whole point of crypto was the tech behind it which was supposed to replace banks, exchanges and missuse of your OWN money. It's supposed to be an alternative to the trash financial tools we already use. The fact that people are using entities such FTX, Binance makes them deserve to be punished for their betrayal. Regardless if they use FTX or JP Morgan they pretty much deserve to experiment the shortfalls of centralised finance. I think it's part of the hello world example of what DeFi is trying to solve. One more thing: If FTX was hacked I bet it has almost nothing to do with the crypto technology. https://en.m.wikipedia.org/wiki/MF_Global https://en.m.wikipedia.org/wiki/MF_Global
- largepeepee 4y ago
  Some call this a "hack", others who are brighter noticed that the recent FTX limited account unfreeze before they declared bankruptcy was to mask their own personal outflows as they siphoned money from a sinking ship
  - deleted 4y ago
    [deleted]

mudrockbestgirl 4y ago

> Reports on crypto Twitter are that this is a hack It's really unfortunate to get "hacked" with such bad timing. You steal customer money and file for bankruptcy but now the bad hackers, probably from the Bahamas as well, take whatever is left and cash out. Oh no! /s But it's alright, SBF said he's sorry.

blitzar 4y ago
In unrelated news SBF just found he had a bunch of crypto in his personal wallet. Totally not at all the pile of crypto that was last seen in the FTX wallet.
- TedDoesntTalk 4y ago
  Yes, 1-2 billion in Sam’s personal wallets: “Reuters is reporting that at least $1 billion in customer funds at the exchange disappeared last weekend, citing two former senior employees briefed on the company's finances.” https://www.reuters.com/markets/currencies/exclusive-least-1-billion-client-funds-missing-failed-crypto-firm-ftx-sources-2022-11-12/ https://www.reuters.com/markets/currencies/exclusive-least-1...
- deleted 4y ago
  [deleted]
  - deleted 4y ago
    [deleted]
- tinus_hn 4y ago
  A minor problem with the blockchain is that the blockchain is actually an authenticated record of all transactions, so it’s pretty hard to hide where the crypto went unless you never actually exchange it or use it to buy something.
  - blitzar 4y ago
    His keys his coins

iblaine 4y ago

It’s unfortunate that what started out with altruistic motives, a method for decentralized anonymous asset exchange, is being derailed by opportunists. There was a time where a 51% attack was the biggest concern. All that said, I’m not surprised at where we are today.

readthenotes1 4y ago
Most of the rules of civilization are centered around preventing the 20% predators from devouring the 80% normal people.
- lelanthran 4y ago
  Most? That's an understatement. The rules that aren't are so few they may as well be rounding errors lost in noise.
- lowbloodsugar 4y ago
- nathias 4y ago
  most are about 10% of predators trying to devour the other 10% of predators while preventing being devoured by the 80% of normal people
- Gasp0de 4y ago
  And here I sit, thinking those rules were so that the 1% could take all the value the 99% produced.
  - baq 4y ago
    Nuclear weapons made this a bigger issue since it closes the option of last resort, which is war. See North Korea…
    - landemva 4y ago
      Not sure what you mean. After what was done to Libya after they gave up nukes, North Korea learned it can't disarm without subsequently being invaded and destroyed.

flylib 4y ago

FTX CTO Gary Wang as well has a lot of recent GitHub commit activity in last 2 days and now suddenly the site is hacked https://github.com/garywang https://github.com/garywang

deleted 4y ago
[deleted]
- deleted 4y ago
  [deleted]
zone411 4y ago
How do you know it's him and not somebody else with the same name? I don't see any crypto projects.
- bmitc 4y ago
  > I don't see any crypto projects. How do you know that? It says explicitly: "52 contributions in private repositories" between November 1 and November 11.
  - zone411 4y ago
    Obviously nobody knows what the private repos are. I was talking about public projects. "Gary Wang" is not an uncommon name. For example, here is another one with a Wikipedia page https://en.wikipedia.org/wiki/Gary_Wang https://en.wikipedia.org/wiki/Gary_Wang
    - bmitc 4y ago
      That's a good point. For whatever reason, I missed the first part of your comment. I did indeed operate under the assumption, incorrectly, that it was his profile. What's interesting is that a lot of the FTX people on the about page (https://about.ftx.com/ https://about.ftx.com/), including Gary Wang and Dan Friedberg have deleted their LinkedIn accounts, whereas they were available earlier. If they're deleting something so harmless, then who knows what else they are deleting and covering up.

deleted 4y ago

[deleted]

dna_polymerase 4y ago

Yeah and I’m sure the Apple App Store review process won’t catch the steal_private_keys_and_upload_to_china() method they inserted. Not that iPhone apps can’t do this in the first place. A lot of FUD right now to create even more chaos.

ForHackernews 4y ago

przeor 4y ago
- paranoidrobot 4y ago
  I can't speak for others, but personally my great dislike for it is the very high rate of scam-like behaviour. Every where you look, it turns out that someone is doing a 'rug pull', using customer funds in ways that don't line up with what they said publicly, or using misleading and deceptive behaviours to con others into giving them money.
  - fmajid 4y ago
    You're already doing them a great favor by conceding a possibility the scam rate is not exactly 100.0%.
- iamacyborg 4y ago
  People dislike crypto because for many it has become incredibly obvious that it’s nothing more than a vehicle to scam and commit fraud. Yes, these things happen elsewhere but crypto is perfectly designed to facilitate these bad behaviours.
  - WanderPanda 4y ago
    Bitcoin is neutral and almost uninfluentiable by any single party. It‘s neutral, all the rules are out there, nobody has an information advantage. With Ethereum it‘s a bit more difficult because it has a history of being very transparent but there is still Vitalik as the BDFL. Almost everything else in „crypto“ is a mostly centralized system with the same points of failure as traditional financial systems (IoUs => bank rund). It is dishonest to conflate Bitcoin with all these possible scams. I hope Ethereum can establish itself as a neutral, natural law kind of system as well (removing Vitalik from the equation). Because on top of Ethereum more people can built trust less systems that can have bugs but that can‘t really be scams because all the mechanics are public and nobody can have an information advantage.