New details emerge about Bitfinex’s history amid hacking probe

[BitcoinXio]

Since the $61 million bitcoin hack from Bitfinex yesterday, many within the bitcoin community have been looking into the exchange trying to figure out exactly what happened, with new details emerging revealing information about the exchange’s history that were never released until today.

Read more: http://bitcoinx.io/news/articles/new-de ... ing-probe/

[DOGed]

It’s unclear at the time if Bitfinex still had 50% of funds on Mt. Gox at the time of the collapse, but it’s fully plausible that Bitfinex lost a considerable amount of funds when Mt. Gox shutdown. If this is the case, Bitfinex may have began running a fractional exchange as far back as 2014.

We know for sure that bitfinex was not operating on a fractional reserve since 2014. By using BitGo, they were able to prove that each individual customer had a corresponding amount of BTC in their BitGo wallets.

I suspect that many other large bitcoin related businesses also relied on Gox in Bitcoin's early days.

[BitcoinXio]

It’s unclear at the time if Bitfinex still had 50% of funds on Mt. Gox at the time of the collapse, but it’s fully plausible that Bitfinex lost a considerable amount of funds when Mt. Gox shutdown. If this is the case, Bitfinex may have began running a fractional exchange as far back as 2014.

We know for sure that bitfinex was not operating on a fractional reserve since 2014. By using BitGo, they were able to prove that each individual customer had a corresponding amount of BTC in their BitGo wallets.

I suspect that many other large bitcoin related businesses also relied on Gox in Bitcoin's early days.

How do you know for sure? They never said they were doing this publicly that I'm aware of. I thought about possibly that Bitfinex could have lost funds on Mt. Gox and made customers whole again with their own funds. This is a good thing, but also means that their own storage was depleted too. They were also hacked in 2015. Did they have the funds to make everyone whole again then too? Did they have enough in their own storage to cover user funds again? Possibly, sure, anything can happen, we don't know what happened behind the scenes there. Now we have this hack, which is huge. I just don't see how they can be solvent after this, without some sort of miracle.

[iFixBTCmemoryIssues]

Since the $61 million bitcoin hack from Bitfinex yesterday, many within the bitcoin community have been looking into the exchange trying to figure out exactly what happened, with new details emerging revealing information about the exchange’s history that were never released until today.

Read more: http://bitcoinx.io/news/articles/new-de ... ing-probe/

A history of disaster.

[DOGed]

It’s unclear at the time if Bitfinex still had 50% of funds on Mt. Gox at the time of the collapse, but it’s fully plausible that Bitfinex lost a considerable amount of funds when Mt. Gox shutdown. If this is the case, Bitfinex may have began running a fractional exchange as far back as 2014.

We know for sure that bitfinex was not operating on a fractional reserve since 2014. By using BitGo, they were able to prove that each individual customer had a corresponding amount of BTC in their BitGo wallets.

--snip--

How do you know for sure?
--snip--

Because BitGo allowed every single user to confirm there was an equivalent amount of BTC in their BitGo wallet that was in their Bitfinex account