Bitfinex/Bitcoin Hack – expert source/comments
August 2016 by J.Paul Haynes, CEO at eSentire
By now, you’ve likely heard about the recent Bitfinex hack, where hackers stole roughly $70M bitcoins from users from a Hong-Kong-based exchange. Bitfinex announced the security breach on Tuesday this week, and then halted all trading on Bitfinex, as well as all digital token deposits to and withdrawals from Bitfinex, according to their website.
J.Paul Haynes, CEO at eSentire, a provider of managed cyber threat detection and response services, says, “This is a prime example of how hackers maintain first-mover advantage. Bitfinex believed their system, which involved multiple security factors, was adequate, and on their blog, even reference that the CFTC (Commodity Futures Trading Commission) was satisfied in the test “delivery” of financial assets based on Bitfinex’s methods. However, satisfying a regulator and being secure are oftentimes not equal and, in fact, may compete with one another. An unfortunate outcome is the Bitcoin currency plummeting 20% by damaged reputation and new investors undoubtedly spooked. The grass does not appear to be greener with this new currency today.”