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A comment on BitFinex down due to Bitcoin security breach - 120k BTC stolen. Parent comment

Re:BitFinex down due to Bitcoin security breach - 120k BTC s... by berberous on Tuesday August 02, 2016 @08:02PM (#12214410)
"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_se...

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Re:BitFinex down due to Bitcoin security breach - 120k BTC s... by makomk on Wednesday August 03, 2016 @06:16AM (#12216911)
No, 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/...
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Re:BitFinex down due to Bitcoin security breach - 120k BTC s... by vamur on Wednesday August 03, 2016 @07:07AM (#12217104)
In that case they should have required users to also login to bitgo and approve any withdrawals. Otherwise, what's the point of Bitgo?
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