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.”