Deribit halts withdrawal after 28MM hack

BMK said:
So in your view, hacking always involves hardware of some sort? It is not possible to hack into software?
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I did not say that at all, no.

If you are implying that a Bitcoin or Ethereum wallet is software then that would be a misunderstanding of software and cryptography.
 
BMK said:
If a hot wallet is not software, then what is it?
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Listen, you are going to have to do some of the work yourself. Use google. Read. Learn. A crypto wallet is not even remotely considered software. It's just a public/private key pair.
 
FreeGoldRush said:
I did not say that at all, no.

If you are implying that a Bitcoin or Ethereum wallet is software then that would be a misunderstanding of software and cryptography.
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According to Coinbase, "Crypto wallets store your private keys, keeping your crypto safe and accessible. They also allow you to send, receive, and spend cryptocurrencies like Bitcoin and Ethereum."

Here's the link: https://www.coinbase.com/learn/crypto-basics/what-is-a-crypto-wallet

If it is a hot wallet, where are the keys stored? On my computer? On a server owned by an exchange, such as Deribit? On a server owned by an organization such as Coinbase? Or somewhere else?
 
I suppose their key signing software could have been hacked. But to hack someone's implementation of Bitcoin, Ethereum, etc. key signing software all at the exact same time is extremely unlikely. Someone got access to their private keys. Period. That's no more a crypto hack than you stealing my car keys is a BMW hack. They don't tell us what was hacked but they clearly want you to get the impression they aren't entirely to blame, which is BS. They want you to think this was some cryptocurrency insecurity and they could not possibly have been the cause. Buy into that BS if you want.
 
BMK said:
According to Coinbase, "Crypto wallets store your private keys, keeping your crypto safe and accessible. They also allow you to send, receive, and spend cryptocurrencies like Bitcoin and Ethereum."

Here's the link: https://www.coinbase.com/learn/crypto-basics/what-is-a-crypto-wallet

If it is a hot wallet, where are the keys stored? On my computer? On a server owned by an exchange, such as Deribit? On a server owned by an organization such as Coinbase? Or somewhere else?
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The Coinbase definition is a retail facing explanation and not a technical one. You will have to ask the exchange where their wallet keys are stored but generally a "hot wallet" means the private keys for signing transactions are stored on a server. The likely scenario is that their server software was hacked. There are a million ways this could happen. But a server hack does not suddenly become a "cryptocurrency hack" just because that server held private keys to crypto wallets.
 
FreeGoldRush said:
The likely scenario is that their server software was hacked. There are a million ways this could happen. But a server hack does not suddenly become a "cryptocurrency hack" just because that server held private keys to crypto wallets.
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Has anyone at Deribit claimed that the incident was a "cryptocurrency hack"? The post on Twitter said that their hot wallet was hacked.
 
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