Re:BitFinex down due to Bitcoin security breach - 120k BTC s...
by robryk on Wednesday August 03, 2016 @05:17AM
(#12216706)
See http://hackingdistributed.com/2016/02/26/how-to-implement-se... for a write-up on (I think) the exact thing you propose.
Re:BitFinex down due to Bitcoin security breach - 120k BTC s...
by vamur on Wednesday August 03, 2016 @02:48AM
(#12216103)
Also, looking at reddit, they moved to a new datacenter recently. So could be that a datacenter employee stole code and database and then submitted the withdrawal requests from the stolen code to Bitgo. Not even sure how to protect against that.
Though in this case it looks like it was a hack on a third party provider, which is why relying on third parties for core functions is not a good idea. Why would Bitfinex use that provider instead of a multi-sig cold storage is anybody's idea.