Bitfinex Hot Wallet Hack - Revision history

Azoundria at 21:44, 13 September 2024

2024-09-13T21:44:09Z

Azoundria: COMPLETE 30 minutes. Review of article and fixed more casing on Bitfinex name. Added estimated percentage of total reserves taken. Added information on revision of total in the Reddit thread. Integrated bitcoin transfer data from the blockchain into the timeline.

2024-05-15T22:12:30Z

COMPLETE 30 minutes. Review of article and fixed more casing on Bitfinex name. Added estimated percentage of total reserves taken. Added information on revision of total in the Reddit thread. Integrated bitcoin transfer data from the blockchain into the timeline.

← Older revision		Revision as of 16:12, 15 May 2024
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	[[File:Bitfinex.jpg\|thumb\|BitFinex Logo/Homepage]]Bitfinex was the largest exchange by volume at this time. It stored the vast majority of funds in proper sold storage, and a relatively small amount was in a hot wallet, which was breached. The exchange absorbed the loss without impact to customers.		[[File:Bitfinex.jpg\|thumb\|BitFinex Logo/Homepage]]Bitfinex was the largest exchange by volume at this time. It stored the vast majority of funds in proper sold storage, and a relatively small amount was in a hot wallet, which was breached. The exchange absorbed the loss without impact to customers.



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	!Event		!Event
	!Description		!Description
			\|-
			\|May 21st, 2015 9:02:07 AM MDT
			\|First Blockchain Transaction
			\|The very first blockchain transaction, which takes 270 bitcoin from Bitfinex into the hacker's wallet<ref>[https://www.blockchain.com/explorer/transactions/btc/878320bb4ad43aeb34812fa30ee6b4856d761f82e97868ac7b00eab59a662858 Transfer 270 Bitcoin from Bitfinex to Hacker - Blockchain.com] (Accessed May 15, 2024)</ref>.
			\|-
			\|May 22nd, 2015 4:08:20 AM MDT
			\|Final Blockchain Transaction
			\|The final transaction into the thief's wallet which can be attributed to the hack<ref>[https://www.blockchain.com/explorer/transactions/btc/c2191c6aba2921c02c1506ffdd15d6c98131872322ee78ce28eebc6890ab18d3 Transfer 1.25826178 BTC From Bitfinex To Hacker - Blockchain.com] (Accessed May 15, 2024)</ref>.
	\|-		\|-
	\|May 22nd, 2015 4:32:16 AM MDT		\|May 22nd, 2015 4:32:16 AM MDT
	\|Reddit Discussion Started		\|Reddit Discussion Started
	\|A thread is started in the Bitcoin subreddit about the attack<ref name="reddit-3020" />. The total amount of the loss is ~~revealed~~ to be 1,459 bitcoin, and multiple bitcoin wallet addresses associated with ~~BitFinex~~ and the attacker are revealed<ref name="reddit-3020" />. Users ~~comment~~ on the situation~~, discussing~~ potential security vulnerabilities, the ongoing hack, and the implications for Bitfinex users<ref name="reddit-3020" />. A lively discussion touches on topics like the nature of cold wallets, the risk of theft, and the role of human error in security breaches<ref name="reddit-3020" />.		\|A thread is started in the Bitcoin subreddit about the attack by a Reddit user gowithbtc<ref name="reddit-3020" />. The total amount of the loss is initially thought to be 1,459 bitcoin, and multiple bitcoin wallet addresses associated with Bitfinex and the attacker are revealed<ref name="reddit-3020" />. Users commenting on the situation discuss potential security vulnerabilities, the ongoing hack, and the implications for Bitfinex users<ref name="reddit-3020" />. A lively discussion touches on topics like the nature of cold wallets, the risk of theft, and the role of human error in security breaches<ref name="reddit-3020" />.
	\|-		\|-
	\|May 22nd, 2015 5:40:20 AM MDT		\|May 22nd, 2015 5:40:20 AM MDT
	\|CoinTelegraph Article Published		\|CoinTelegraph Article Published
	\|CoinTelegraph reports that ~~BitFinex~~'s hot wallet was hacked, resulting in the potential loss of over 1,500 bitcoins, equivalent to approximately $330,000 USD at the time<ref name="cointelegraph-3016" />. Despite the breach, ~~BitFinex~~ assured its users that trading was not affected and confirmed that a new hot wallet had been generated to address the issue. The company urged users to refrain from depositing funds into old addresses and reassured them that their accounts would not be affected, with the entire loss to be absorbed by the exchange. While the Reddit Bitcoin community speculated on the destination of the stolen coins, ~~BitFinex~~'s handling of the situation raised questions about the security of cryptocurrency exchanges<ref name="cointelegraph-3016" />.		\|CoinTelegraph reports that Bitfinex's hot wallet was hacked, resulting in the potential loss of over 1,500 bitcoins, equivalent to approximately $330,000 USD at the time<ref name="cointelegraph-3016" />. Despite the breach, Bitfinex assured its users that trading was not affected and confirmed that a new hot wallet had been generated to address the issue. The company urged users to refrain from depositing funds into old addresses and reassured them that their accounts would not be affected, with the entire loss to be absorbed by the exchange. While the Reddit Bitcoin community speculated on the destination of the stolen coins, Bitfinex's handling of the situation raised questions about the security of cryptocurrency exchanges<ref name="cointelegraph-3016" />.
	\|-		\|-
	\|May 22nd, 2015 5:49:00 AM MDT		\|May 22nd, 2015 5:49:00 AM MDT
	\|Twitter Post About Incident		\|Twitter Post About Incident
	\|~~BitFinex~~ tweets on Twitter about the breach<ref name="bitfinextwitter-3017" />. This links to their announcement on their website<ref name="bitfinexarchive-3018" /> and recommends that users do not deposit funds to previous deposit addresses<ref name="bitfinextwitter-3017" />.		\|Bitfinex tweets on Twitter about the breach<ref name="bitfinextwitter-3017" />. This links to their announcement on their website<ref name="bitfinexarchive-3018" /> and recommends that users do not deposit funds to previous deposit addresses<ref name="bitfinextwitter-3017" />.
			\|-
			\|May 22nd, 2015 6:33:58 AM MDT
			\|Revised Total Of Loss
			\|The estimate in gowithbtc's Reddit post is updated from 1,459 bitcoin to 1,474 bitcoin<ref name="reddit-3020" />.
	\|-		\|-
	\|May 24th, 2015 5:12:54 PM MDT		\|May 24th, 2015 5:12:54 PM MDT
	\|SiliconAngle Article		\|SiliconAngle Article
	\|SiliconANGLE reports that ~~Bitfinex, a Hong Kong-based Bitcoin exchange operated by iFinex Inc. (Bvi), experienced a~~ hack ~~resulting~~ in the theft of approximately 1474 BTC from ~~its~~ hot wallet, ~~constituting~~ about 0.5% of the company's total held bitcoins<ref name="siliconangle-3019" />. Following the breach, Bitfinex urged users to suspend bitcoin deposits until the issue was resolved. Despite the incident, the exchange assured customers that over 99.5% of users' BTC deposits were kept in secure multisig wallets<ref name="siliconangle-3019" />. Reddit users estimated the amount stolen, and Bitfinex announced plans to create a new hot wallet and absorb the costs of the hack to ensure customers remain unaffected<ref name="siliconangle-3019" />. The exchange, ranked as the second-largest by volume, behind OKCoin, vowed to enhance its security measures<ref name="siliconangle-3019" />.		\|SiliconANGLE reports that the hack resulted in the theft of approximately 1474 BTC from Bitfinex's hot wallet, which constituted about 0.5% of the company's total held bitcoins<ref name="siliconangle-3019" />. Following the breach, Bitfinex urged users to suspend bitcoin deposits until the issue was resolved. Despite the incident, the exchange assured customers that over 99.5% of users' BTC deposits were kept in secure multisig wallets<ref name="siliconangle-3019" />. Reddit users estimated the amount stolen, and Bitfinex announced plans to create a new hot wallet and absorb the costs of the hack to ensure customers remain unaffected<ref name="siliconangle-3019" />. The exchange, ranked as the second-largest by volume at the time (behind only OKCoin), vowed to enhance its security measures<ref name="siliconangle-3019" />.
	\|}		\|}

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	Hacker Blockchain Address:<ref name="blockchaindotcom-3021" />		Hacker Blockchain Address:<ref name="blockchaindotcom-3021" />

	Bitfinex Intermediate Wallet:<ref>[https://blockchain.info/address/39ngTt6DWQRUbzjmx6ucxz7pPvQcm52CL3 ~~BitFinex~~ Intermediate Wallet - Blockchain.info Explorer] (Accessed May 14, 2024)</ref>		Bitfinex Intermediate Wallet:<ref>[https://blockchain.info/address/39ngTt6DWQRUbzjmx6ucxz7pPvQcm52CL3 Bitfinex Intermediate Wallet - Blockchain.info Explorer] (Accessed May 14, 2024)</ref>

	Bitfinex Cold Wallets:<ref>[https://blockchain.info/address/3Q9ovFSZ77r4UPfDNdCyJqaQznmzxWxDGU ~~BitFinex~~ Cold Storage Wallet 1 - Blockchain.info Explorer] (Accessed May 14, 2024)</ref><ref>[https://blockchain.info/address/39coweGgC8CPZ6hYL1BBEfc1zqbSfHsprW ~~BitFinex~~ Cold Storage Wallet 2 - Blockchain.info Explorer] (Accessed May 14, 2024)</ref><blockquote>Total bitcoins of Bitfinex in Cold wallet(Found now): 115000+116849=231849BTC		Bitfinex Cold Wallets:<ref>[https://blockchain.info/address/3Q9ovFSZ77r4UPfDNdCyJqaQznmzxWxDGU Bitfinex Cold Storage Wallet 1 - Blockchain.info Explorer] (Accessed May 14, 2024)</ref><ref>[https://blockchain.info/address/39coweGgC8CPZ6hYL1BBEfc1zqbSfHsprW Bitfinex Cold Storage Wallet 2 - Blockchain.info Explorer] (Accessed May 14, 2024)</ref><blockquote>Total bitcoins of Bitfinex in Cold wallet(Found now): 115000+116849=231849BTC

	Total bitcoins lost to today hack(up to now 12:22PM GMT): 1474BTC		Total bitcoins lost to today hack(up to now 12:22PM GMT): 1474BTC
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	== Total Amount Lost ==		== Total Amount Lost ==
	Amounts publicly reported have been as varied as 1,400 BTC<ref name="kylegibson-86" />, 1,459 BTC<ref name="reddit-3020" />, 1,474 BTC<ref name="siliconangle-3019" />, 1,500 BTC, and over 1,500 BTC.		Amounts publicly reported have been as varied as 1,400 BTC<ref name="kylegibson-86" />, 1,459 BTC<ref name="reddit-3020" />, 1,474 BTC<ref name="siliconangle-3019" /><ref name="reddit-3020" />, 1,500 BTC, and over 1,500 BTC. These bitcoin constituted either 0.5%<ref name="siliconangle-3019" /> or 0.635%<ref name="reddit-3020" /> of the total bitcoin reserves.

	The market price estimates for the value taken have been $356,000 USD or $400,000 USD.		The market price estimates for the value taken have been $356,000 USD or $400,000 USD.
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	== Immediate Reactions ==		== Immediate Reactions ==

	Bitfinex reacted to the hack by promptly issuing an urgent message to its customers, advising them to cease depositing cryptocurrency and suspend bitcoin deposits until the potential compromise was resolved<ref name="siliconangle-3019" />. The exchange acknowledged that although the majority of users' BTC deposits were kept in secure ~~multisig~~ wallets, the small remaining amount in coins in their hot wallet was vulnerable to attack<ref name="siliconangle-3019" />. Bitfinex assured its customers that the incident, while unfortunate, would be fully absorbed by the company. Additionally, the exchange announced plans to create a new hot wallet and reassured customers that their funds would remain unaffected.<ref name="siliconangle-3019" />		Bitfinex reacted to the hack by promptly issuing an urgent message to its customers, advising them to cease depositing cryptocurrency and suspend bitcoin deposits until the potential compromise was resolved<ref name="siliconangle-3019" />. The exchange acknowledged that although the majority of users' BTC deposits were kept in secure multi-signature wallets, the small remaining amount in coins in their hot wallet was vulnerable to attack<ref name="siliconangle-3019" />. Bitfinex assured its customers that the incident, while unfortunate, would be fully absorbed by the company. Additionally, the exchange announced plans to create a new hot wallet and reassured customers that their funds would remain unaffected.<ref name="siliconangle-3019" />

	~~BitFinex~~ continued operating their trading platform throughout the incident<ref name=":0">[https://twitter.com/stanmarion/status/601717952229019648 Stanislas Marion - "@bitfinex why haven't you halted trading until the matter is resolved ?" - Twitter] (Accessed Apr 19, 2024)</ref>. Bitfinex notified users of the breach on their website, requesting that users not deposit to the previously used deposit addresses<ref name="bitfinextwitter-3017" /><ref name="bitfinexarchive-3018" />.		Bitfinex continued operating their trading platform throughout the incident<ref name=":0">[https://twitter.com/stanmarion/status/601717952229019648 Stanislas Marion - "@bitfinex why haven't you halted trading until the matter is resolved ?" - Twitter] (Accessed Apr 19, 2024)</ref>. Bitfinex notified users of the breach on their website, requesting that users not deposit to the previously used deposit addresses<ref name="bitfinextwitter-3017" /><ref name="bitfinexarchive-3018" />.

	=== Announcement On Website ===		=== Announcement On Website ===

Azoundria: COMPLETE 30 minutes. Overall review and minor tweaks to the article. Completed a full prevention section for individuals, platforms, and regulators. Merged the information from the original prevention description. Filled in a basic technical details section and integrated data from the blockchain, which was uncovered from a Reddit post in the sources already. Added more information about the Reddit thread to the timeline. Improved consistency of casing throughout the article.

2024-05-14T23:03:23Z

COMPLETE 30 minutes. Overall review and minor tweaks to the article. Completed a full prevention section for individuals, platforms, and regulators. Merged the information from the original prevention description. Filled in a basic technical details section and integrated data from the blockchain, which was uncovered from a Reddit post in the sources already. Added more information about the Reddit thread to the timeline. Improved consistency of casing throughout the article.

Show changes

Azoundria: 30 minutes. Confirmed information already integrated from Master The Crypto. Integrated information from Wikipedia. Integrated information from SiliconANGLE article on the breach. Started integrating information from the CoinTelegraph article.

2024-04-25T23:00:21Z

30 minutes. Confirmed information already integrated from Master The Crypto. Integrated information from Wikipedia. Integrated information from SiliconANGLE article on the breach. Started integrating information from the CoinTelegraph article.

← Older revision		Revision as of 17:00, 25 April 2024
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	This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.~~<ref name="masterthecrypto-2241" /><ref name="wikipedia-3014" /><ref name="siliconangle-3019" />~~<ref name="cointelegraph-3016" /><ref name="reddit-3020" /><ref name="blockchaindotcom-3021" /><ref>https://bitcoinmagazine.com/articles/bitfinex-hot-wallets-hacked-1400-bitcoin-may-stolen-1432326539/</ref><ref>https://bitcoinmagazine.com/articles/warning-signs-timeline-tether-and-bitfinex-events/</ref><ref>https://www.hackread.com/bitcoin-exchange-bitfinex-hot-wallet-hacked/</ref>		This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.<ref name="cointelegraph-3016" /><ref name="reddit-3020" /><ref name="blockchaindotcom-3021" /><ref>https://bitcoinmagazine.com/articles/bitfinex-hot-wallets-hacked-1400-bitcoin-may-stolen-1432326539/</ref><ref>https://bitcoinmagazine.com/articles/warning-signs-timeline-tether-and-bitfinex-events/</ref><ref>https://www.hackread.com/bitcoin-exchange-bitfinex-hot-wallet-hacked/</ref>

	== About BitFinex ==		== About BitFinex ==
	"Bitfinex is a ~~Hong Kong-based~~ cryptocurrency exchange owned ~~and operated~~ by iFinex Inc~~., which is headquartered in Hong Kong~~ and registered in the British Virgin Islands~~." "The Bitfinex exchange is a popular platform for exchanging cryptocurrencies, also hosting spot and derivatives trading as well as certain lending~~, ~~borrowing and staking features. Bitfinex came into existence~~ in 2012~~." "BitFinex offers three main functions~~ - ~~it is a pure bitcoin~~ to ~~fiat exchange, a margin trading~~ exchange and ~~a liquidity provider. The platform offers a number of features available that expand the financial positions you can take - for example, the ability~~ to ~~short Bitcoin via margin trading.~~"		Bitfinex, a cryptocurrency exchange owned by iFinex Inc and registered in the British Virgin Islands, was founded in 2012 as a peer-to-peer Bitcoin exchange and later expanded to support other cryptocurrencies<ref name="wikipedia-3014" />. Offering high-volume trading and various products including spot and derivatives trading, margin funding, and over-the-counter markets, Bitfinex quickly became one of the first professional platforms in cryptocurrency trading<ref name="wikipedia-3014" />.

	"~~Bitfinex also has its own utility crypto token called Unus Sed Leo (LEO). Because it restricts a number of regions, Bitfinex U.S~~. ~~customers are not allowed. On Bitfinex, KYC and Anti~~-~~Money Laundering procedures are employed." "It serves all except few countries in the world (mentioned below)~~ and ~~supports both fiat-to-crypto~~ and ~~crypto-to-crypto trades. Other notable features include~~ margin ~~trading~~, ~~limit~~ and ~~stop orders,~~ over-the-counter ~~(OTC) trades~~, ~~and others. While there are many options available, everything is laid out~~ in ~~an impressively intuitive fashion, with easy~~-~~to-navigate dashboards and menus~~."

	Bitfinex, founded in 2012 and based in Hong Kong, operates as a leading cryptocurrency exchange offering various functions like bitcoin to fiat exchange, margin trading, and liquidity provision<ref name="masterthecrypto-2241" />. Despite being among the highest-volume exchanges globally, Bitfinex continues to operate and remains popular for its extensive trading options, customizable interface, low fees, and wide range of supported currencies and pairs<ref name="masterthecrypto-2241" />. Bitfinex provides a user-friendly trading platform. It requires KYC verification for certain services but offers basic access with just an email<ref name="masterthecrypto-2241" />.		Bitfinex, founded in 2012 and based in Hong Kong, operates as a leading cryptocurrency exchange offering various functions like bitcoin to fiat exchange, margin trading, and liquidity provision<ref name="masterthecrypto-2241" />. Despite being among the highest-volume exchanges globally, Bitfinex continues to operate and remains popular for its extensive trading options, customizable interface, low fees, and wide range of supported currencies and pairs<ref name="masterthecrypto-2241" />. Bitfinex provides a user-friendly trading platform. It requires KYC verification for certain services but offers basic access with just an email<ref name="masterthecrypto-2241" />.
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	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
			\|-
			\|May 22nd, 2015 5:40:20 AM MDT
			\|CoinTelegraph Article Published
			\|CoinTelegraph reports that BitFinex's hot wallet was hacked, resulting in the potential loss of over 1,500 bitcoins, equivalent to approximately $330,000 USD at the time<ref name="cointelegraph-3016" />. Despite the breach, BitFinex assured its users that trading was not affected and confirmed that a new hot wallet had been generated to address the issue. The company urged users to refrain from depositing funds into old addresses and reassured them that their accounts would not be affected, with the entire loss to be absorbed by the exchange. While the Reddit Bitcoin community speculated on the destination of the stolen coins, BitFinex's handling of the situation raised questions about the security of cryptocurrency exchanges<ref name="cointelegraph-3016" />.
	\|-		\|-
	\|May 22nd, 2015 5:49:00 AM MDT		\|May 22nd, 2015 5:49:00 AM MDT
	\|Twitter Post About Incident		\|Twitter Post About Incident
	\|BitFinex tweets on Twitter about the breach<ref name="bitfinextwitter-3017" />. This links to their announcement on their website<ref name="bitfinexarchive-3018" /> and recommends that users do not deposit funds to previous deposit addresses<ref name="bitfinextwitter-3017" />.		\|BitFinex tweets on Twitter about the breach<ref name="bitfinextwitter-3017" />. This links to their announcement on their website<ref name="bitfinexarchive-3018" /> and recommends that users do not deposit funds to previous deposit addresses<ref name="bitfinextwitter-3017" />.
			\|-
			\|May 24th, 2015 5:12:54 PM MDT
			\|SiliconAngle Article
			\|SiliconANGLE reports that Bitfinex, a Hong Kong-based Bitcoin exchange operated by iFinex Inc. (Bvi), experienced a hack resulting in the theft of approximately 1474 BTC from its hot wallet, constituting about 0.5% of the company's total held bitcoins<ref name="siliconangle-3019" />. Following the breach, Bitfinex urged users to suspend bitcoin deposits until the issue was resolved. Despite the incident, the exchange assured customers that over 99.5% of users' BTC deposits were kept in secure multisig wallets<ref name="siliconangle-3019" />. Reddit users estimated the amount stolen, and Bitfinex announced plans to create a new hot wallet and absorb the costs of the hack to ensure customers remain unaffected<ref name="siliconangle-3019" />. The exchange, ranked as the second-largest by volume, behind OKCoin, vowed to enhance its security measures<ref name="siliconangle-3019" />.
	\|}		\|}

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	== Total Amount Lost ==		== Total Amount Lost ==
	Amounts publicly reported have been as varied as 1,400 BTC<ref name="kylegibson-86" />, 1,459 BTC<ref name="reddit-3020" />, 1,474 BTC, 1,500 BTC, and over 1,500 BTC.		Amounts publicly reported have been as varied as 1,400 BTC<ref name="kylegibson-86" />, 1,459 BTC<ref name="reddit-3020" />, 1,474 BTC<ref name="siliconangle-3019" />, 1,500 BTC, and over 1,500 BTC.

	The market price estimates for the value taken have been $356,000 USD or $400,000 USD.		The market price estimates for the value taken have been $356,000 USD or $400,000 USD.
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	== Immediate Reactions ==		== Immediate Reactions ==


			Bitfinex reacted to the hack by promptly issuing an urgent message to its customers, advising them to cease depositing cryptocurrency and suspend bitcoin deposits until the potential compromise was resolved<ref name="siliconangle-3019" />. The exchange acknowledged that although the majority of users' BTC deposits were kept in secure multisig wallets, the small remaining amount in coins in their hot wallet was vulnerable to attack<ref name="siliconangle-3019" />. Bitfinex assured its customers that the incident, while unfortunate, would be fully absorbed by the company. Additionally, the exchange announced plans to create a new hot wallet and reassured customers that their funds would remain unaffected.<ref name="siliconangle-3019" />

	BitFinex continued operating their trading platform throughout the incident<ref name=":0">[https://twitter.com/stanmarion/status/601717952229019648 Stanislas Marion - "@bitfinex why haven't you halted trading until the matter is resolved ?" - Twitter] (Accessed Apr 19, 2024)</ref>. BitFinex notified users of the breach on their website, requesting that users not deposit to the previously used deposit addresses<ref name="bitfinextwitter-3017" /><ref name="bitfinexarchive-3018" />.		BitFinex continued operating their trading platform throughout the incident<ref name=":0">[https://twitter.com/stanmarion/status/601717952229019648 Stanislas Marion - "@bitfinex why haven't you halted trading until the matter is resolved ?" - Twitter] (Accessed Apr 19, 2024)</ref>. BitFinex notified users of the breach on their website, requesting that users not deposit to the previously used deposit addresses<ref name="bitfinextwitter-3017" /><ref name="bitfinexarchive-3018" />.

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	"Don't deposit to old BTC addresses. New addresses are online and updates will follow soon."		"Don't deposit to old BTC addresses. New addresses are online and updates will follow soon."

			=== Community Reactions ===
			The wider community responded to the Bitfinex hack with concern and interest<ref name="siliconangle-3019" />. Reddit users actively discussed and speculated on the extent of the hack, with some attempting to track the amount of bitcoins stolen. The incident drew attention to the security vulnerabilities of cryptocurrency exchanges and prompted discussions about the importance of robust security measures in the industry. Additionally, the hack added to the growing number of reported hacks against Bitcoin exchanges in 2015, contributing to a sense of caution among cryptocurrency users and investors<ref name="siliconangle-3019" />

	== Ultimate Outcome ==		== Ultimate Outcome ==
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	The exchange has suffered security breaches and legal issues, including a lawsuit from the State of New York in 2019<ref name="masterthecrypto-2241" />.		The exchange has suffered security breaches and legal issues, including a lawsuit from the State of New York in 2019<ref name="masterthecrypto-2241" />.

			Despite this security breach and a later fine imposed by the U.S. Commodity Futures Trading Commission in 2016, Bitfinex remains a significant player in the cryptocurrency exchange market<ref name="wikipedia-3014" />.

	== Total Amount Recovered ==		== Total Amount Recovered ==

Azoundria: 30 minutes. Integrated BitcoinExchangeGuide source. Removed source related to the later Bitfinex hack, not relevant to this one. Removed the source with generic future Bitfinex news. Integrated a CryptoNews review site which published a review of the Bitfinex platform. Integrate information from Master The Crypto review.

2024-04-24T23:16:07Z

30 minutes. Integrated BitcoinExchangeGuide source. Removed source related to the later Bitfinex hack, not relevant to this one. Removed the source with generic future Bitfinex news. Integrated a CryptoNews review site which published a review of the Bitfinex platform. Integrate information from Master The Crypto review.

← Older revision		Revision as of 17:16, 24 April 2024
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	This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.~~<ref name="bitcoinexchangeguide-218" /><ref name="bbc-15" /><ref name="cointelegraph-2238" /><ref name="cryptonews-2239" /><ref name="cryptocompare-2240" />~~<ref name="masterthecrypto-2241" /><ref name="wikipedia-3014" /><ref name="siliconangle-3019" /><ref name="cointelegraph-3016" /><ref name="reddit-3020" /><ref name="blockchaindotcom-3021" /><ref>https://bitcoinmagazine.com/articles/bitfinex-hot-wallets-hacked-1400-bitcoin-may-stolen-1432326539/</ref><ref>https://bitcoinmagazine.com/articles/warning-signs-timeline-tether-and-bitfinex-events/</ref><ref>https://www.hackread.com/bitcoin-exchange-bitfinex-hot-wallet-hacked/</ref>		This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.<ref name="masterthecrypto-2241" /><ref name="wikipedia-3014" /><ref name="siliconangle-3019" /><ref name="cointelegraph-3016" /><ref name="reddit-3020" /><ref name="blockchaindotcom-3021" /><ref>https://bitcoinmagazine.com/articles/bitfinex-hot-wallets-hacked-1400-bitcoin-may-stolen-1432326539/</ref><ref>https://bitcoinmagazine.com/articles/warning-signs-timeline-tether-and-bitfinex-events/</ref><ref>https://www.hackread.com/bitcoin-exchange-bitfinex-hot-wallet-hacked/</ref>

	== About BitFinex ==		== About BitFinex ==
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	"Bitfinex also has its own utility crypto token called Unus Sed Leo (LEO). Because it restricts a number of regions, Bitfinex U.S. customers are not allowed. On Bitfinex, KYC and Anti-Money Laundering procedures are employed." "It serves all except few countries in the world (mentioned below) and supports both fiat-to-crypto and crypto-to-crypto trades. Other notable features include margin trading, limit and stop orders, over-the-counter (OTC) trades, and others. While there are many options available, everything is laid out in an impressively intuitive fashion, with easy-to-navigate dashboards and menus."		"Bitfinex also has its own utility crypto token called Unus Sed Leo (LEO). Because it restricts a number of regions, Bitfinex U.S. customers are not allowed. On Bitfinex, KYC and Anti-Money Laundering procedures are employed." "It serves all except few countries in the world (mentioned below) and supports both fiat-to-crypto and crypto-to-crypto trades. Other notable features include margin trading, limit and stop orders, over-the-counter (OTC) trades, and others. While there are many options available, everything is laid out in an impressively intuitive fashion, with easy-to-navigate dashboards and menus."

			Bitfinex, founded in 2012 and based in Hong Kong, operates as a leading cryptocurrency exchange offering various functions like bitcoin to fiat exchange, margin trading, and liquidity provision<ref name="masterthecrypto-2241" />. Despite being among the highest-volume exchanges globally, Bitfinex continues to operate and remains popular for its extensive trading options, customizable interface, low fees, and wide range of supported currencies and pairs<ref name="masterthecrypto-2241" />. Bitfinex provides a user-friendly trading platform. It requires KYC verification for certain services but offers basic access with just an email<ref name="masterthecrypto-2241" />.

			BitFinex functions as a bitcoin to fiat exchange, a margin trading platform, a liquidity provider, and an OTC desk<ref name="cryptocompare-2240" /><ref name="cryptonews-2239" />. It provides features like shorting Bitcoin through margin trading, expanding financial positions<ref name="cryptocompare-2240" />. The exchange offers a wide range of trading pairs, high liquidity, and various trading options<ref name="cryptonews-2239" />. Additionally, the platform offers cryptocurrencies like Litecoin and Ethereum for trading, not just Bitcoin<ref name="cryptocompare-2240" />. The platform charges competitive trading fees based on trading volume and offers flexibility in deposit and withdrawal methods, including bank transfers and cryptocurrency transfers<ref name="cryptonews-2239" />. Deposits and withdrawals are conducted through bank transfers, with fees of 0.1% and a minimum of $20, while Bitcoin and Litecoin transactions are free of charge<ref name="cryptocompare-2240" />.

	== The Reality ==		== The Reality ==
			Bitfinex's trust and privacy are questioned due to its opaque operations and controversies surrounding its management and partnerships<ref name="masterthecrypto-2241" />. Bitfinex has faced criticism for its lack of transparency and connection to Tether (USDT), accused of manipulative activities<ref name="masterthecrypto-2241" />.

	This sections is included if a case involved deception or information that was unknown at the time. Examples include:		This sections is included if a case involved deception or information that was unknown at the time. Examples include:

Line 69:		Line 75:

	== Ultimate Outcome ==		== Ultimate Outcome ==
	~~What was~~ the ~~end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?~~		Following this and other hacking incidents, Bitfinex has strengthened its security measures and compensated users for their losses<ref name="cryptonews-2239" />. Bitfinex has moved from a hot wallet cold wallet set up to segregating customer funds where each user has access to their own wallet which they can review on the blockchain<ref name="cryptocompare-2240" />. Bitfinex now prioritizes user security with features like 2FA, IP monitoring, and cold storage for funds<ref name="cryptonews-2239" />.

	"Bitfinex indicates it will absorb the losses." "Although this incident is unfortunate, its scale is small and will be fully absorbed by the company. Thanks a lot for your patience and comprehension."		"Bitfinex indicates it will absorb the losses." "Although this incident is unfortunate, its scale is small and will be fully absorbed by the company. Thanks a lot for your patience and comprehension."

	The incident was included in a list put together by Kyle Gibson<ref name="kylegibson-86" />.		The incident was included in a list put together by Kyle Gibson<ref name="kylegibson-86" /> and BitcoinExchangeGuide<ref name="bitcoinexchangeguide-218" />.

			The exchange has suffered security breaches and legal issues, including a lawsuit from the State of New York in 2019<ref name="masterthecrypto-2241" />.

	== Total Amount Recovered ==		== Total Amount Recovered ==
	Bitfinex continued operating their trading platform throughout the incident<ref name=":0" /> and repeatedly indicated that they would cover the loss for users<ref name="kylegibson-86" />.		Bitfinex continued operating their trading platform throughout the incident<ref name=":0" /> and repeatedly indicated that they would cover the loss for users<ref name="kylegibson-86" />. Bitfinex ultimately strengthened their security measures and compensated users for their losses<ref name="cryptonews-2239" />.

	"Although this incident is unfortunate, its scale is small and will be fully absorbed by the company. Thanks a lot for your patience and comprehension."		"Although this incident is unfortunate, its scale is small and will be fully absorbed by the company. Thanks a lot for your patience and comprehension."

Azoundria: 30 minutes. Split out the information from the about section into other sections. Updated the template. Reviewed and updated all source titles. Information from announcement on the website and Twitter integrated. Updating on the variety of loss amounts reported in media. Integration of information and new sources from Kyle Gibson. Added in tweet about platform still operating.

2024-04-19T20:05:40Z

30 minutes. Split out the information from the about section into other sections. Updated the template. Reviewed and updated all source titles. Information from announcement on the website and Twitter integrated. Updating on the variety of loss amounts reported in media. Integration of information and new sources from Kyle Gibson. Added in tweet about platform still operating.

Show changes

Azoundria at 23:58, 12 April 2023

2023-04-12T23:58:55Z

← Older revision		Revision as of 17:58, 12 April 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/bitfinexhotwallethack.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/bitfinexhotwallethack.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	[[File:Bitfinex.jpg\|thumb\|BitFinex]]Bitfinex wat the largest exchange by volume at this time. It stored the vast majority of funds in proper sold storage, and a relatively small amount was in a hot wallet, which was breached.		[[File:Bitfinex.jpg\|thumb\|BitFinex]]Bitfinex wat the largest exchange by volume at this time. It stored the vast majority of funds in proper sold storage, and a relatively small amount was in a hot wallet, which was breached.
Line 8:		Line 8:


	This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.		This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.<ref name="kylegibson-86" /><ref name="bitcoinexchangeguide-218" /><ref name="bbc-15" /><ref name="cointelegraph-2238" /><ref name="cryptonews-2239" /><ref name="cryptocompare-2240" /><ref name="masterthecrypto-2241" /><ref name="wikipedia-3014" /><ref name="siliconangle-3019" /><ref name="cointelegraph-3016" /><ref name="bitfinextwitter-3017" /><ref name="bitfinexarchive-3018" /><ref name="reddit-3020" /><ref name="blockchaindotcom-3021" />
	<ref name="kylegibson-86" /><ref name="bitcoinexchangeguide-218" /><ref name="bbc-15" /><ref name="cointelegraph-2238" /><ref name="cryptonews-2239" /><ref name="cryptocompare-2240" /><ref name="masterthecrypto-2241" /><ref name="wikipedia-3014" /><ref name="siliconangle-3019" /><ref name="cointelegraph-3016" /><ref name="bitfinextwitter-3017" /><ref name="bitfinexarchive-3018" /><ref name="reddit-3020" /><ref name="blockchaindotcom-3021" />

	== About BitFinex ==		== About BitFinex ==
Line 63:		Line 62:
	!Description		!Description
	\|-		\|-
	\|May 22nd, 2015 ~~12:00:00 AM~~		\|May 22nd, 2015
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
Line 90:		Line 89:
	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
	== Prevention Policies ==
	In this case, there were no customer losses.		In this case, there were no customer losses.

	Greater security can be obtained by storing more funds in offline multi-signature storage, and signing specific transactions for larger withdrawals.		Greater security can be obtained by storing more funds in offline multi-signature storage, and signing specific transactions for larger withdrawals.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

			== Platform Prevention Policies ==
			{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

			{{Prevention:Regulators:End}}

	== References ==		== References ==
Line 101:		Line 113:
	<ref name="bitcoinexchangeguide-218">[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 5, 2020)</ref>		<ref name="bitcoinexchangeguide-218">[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 5, 2020)</ref>

	<ref name="bbc-15">[https://www.bbc.com/news/technology-37009319 Bitfinex users to share 36% of bitcoin losses after hack - BBC News] (Feb 2, 2020)</ref>		<ref name="bbc-15">[https://www.bbc.com/news/technology-37009319 Bitfinex users to share 36% of bitcoin losses after hack - BBC News] (Feb 3, 2020)</ref>

	<ref name="cointelegraph-2238">[https://cointelegraph.com/tags/bitfinex Bitfinex \| Latest Bitfinex News by Cointelegraph] (Aug 6, 2021)</ref>		<ref name="cointelegraph-2238">[https://cointelegraph.com/tags/bitfinex Bitfinex \| Latest Bitfinex News by Cointelegraph] (Aug 7, 2021)</ref>

	<ref name="cryptonews-2239">[https://cryptonews.com/reviews/bitfinex/ Bitfinex Review (2021) - Is It Trustworthy?] (Aug 6, 2021)</ref>		<ref name="cryptonews-2239">[https://cryptonews.com/reviews/bitfinex/ Bitfinex Review (2021) - Is It Trustworthy?] (Aug 7, 2021)</ref>

	<ref name="cryptocompare-2240">[https://www.cryptocompare.com/exchanges/bitfinex/overview Bitfinex Exchange Reviews, Live Markets, Guides, Bitcoin charts] (Aug 6, 2021)</ref>		<ref name="cryptocompare-2240">[https://www.cryptocompare.com/exchanges/bitfinex/overview Bitfinex Exchange Reviews, Live Markets, Guides, Bitcoin charts] (Aug 7, 2021)</ref>

	<ref name="masterthecrypto-2241">[https://masterthecrypto.com/bitfinex/ Bitfinex Exchange: User Review Guide - Master The Crypto] (Aug 6, 2021)</ref>		<ref name="masterthecrypto-2241">[https://masterthecrypto.com/bitfinex/ Bitfinex Exchange: User Review Guide - Master The Crypto] (Aug 7, 2021)</ref>

	<ref name="wikipedia-3014">[https://en.wikipedia.org/wiki/Bitfinex Bitfinex - Wikipedia] (Aug 5, 2021)</ref>		<ref name="wikipedia-3014">[https://en.wikipedia.org/wiki/Bitfinex Bitfinex - Wikipedia] (Aug 6, 2021)</ref>

	<ref name="siliconangle-3019">[https://siliconangle.com/2015/05/24/bitfinex-bitcoin-exchange-hot-wallet-hacked-estimated-1474-btc-stolen/ Bitfinex Bitcoin exchange hot wallet hacked, estimated 1474 BTC stolen - SiliconANGLE] (Sep 11, 2021)</ref>		<ref name="siliconangle-3019">[https://siliconangle.com/2015/05/24/bitfinex-bitcoin-exchange-hot-wallet-hacked-estimated-1474-btc-stolen/ Bitfinex Bitcoin exchange hot wallet hacked, estimated 1474 BTC stolen - SiliconANGLE] (Sep 12, 2021)</ref>

	<ref name="cointelegraph-3016">[https://cointelegraph.com/news/breaking-bitfinex-hot-wallet-hacked-bitcoins-stolen <nowiki>BitFinex's Hot Wallet Hacked, More Than 1,500 Bitcoins Stolen [UPDATE]</nowiki>] (Sep 11, 2021)</ref>		<ref name="cointelegraph-3016">[https://cointelegraph.com/news/breaking-bitfinex-hot-wallet-hacked-bitcoins-stolen <nowiki>BitFinex's Hot Wallet Hacked, More Than 1,500 Bitcoins Stolen [UPDATE]</nowiki>] (Sep 12, 2021)</ref>

	<ref name="bitfinextwitter-3017">[https://twitter.com/bitfinex/status/601716397497065473 @bitfinex Twitter] (Sep 11, 2021)</ref>		<ref name="bitfinextwitter-3017">[https://twitter.com/bitfinex/status/601716397497065473 @bitfinex Twitter] (Sep 12, 2021)</ref>

	<ref name="bitfinexarchive-3018">[https://web.archive.org/web/20160306151326/https://www.bitfinex.com/pages/announcements?id=35 Bitfinex - Announcements] (Sep 11, 2021)</ref>		<ref name="bitfinexarchive-3018">[https://web.archive.org/web/20160306151326/https://www.bitfinex.com/pages/announcements?id=35 Bitfinex - Announcements] (Sep 12, 2021)</ref>

	<ref name="reddit-3020">[https://www.reddit.com/r/Bitcoin/comments/36v29t/bitfinex_hack2252015_1459_bitcoins_lost/ Bitfinex hack(22/5/2015): 1459 bitcoins lost : Bitcoin] (Sep 11, 2021)</ref>		<ref name="reddit-3020">[https://www.reddit.com/r/Bitcoin/comments/36v29t/bitfinex_hack2252015_1459_bitcoins_lost/ Bitfinex hack(22/5/2015): 1459 bitcoins lost : Bitcoin] (Sep 12, 2021)</ref>

	<ref name="blockchaindotcom-3021">[https://www.blockchain.com/btc/address/17owg8RWb73qfE5HeQk6gg6RAgEUfxPXks Address: 17owg8RWb73qfE5HeQk6gg6RAgEUfxPXks \| Blockchain Explorer] (Sep 11, 2021)</ref></references>		<ref name="blockchaindotcom-3021">[https://www.blockchain.com/btc/address/17owg8RWb73qfE5HeQk6gg6RAgEUfxPXks Address: 17owg8RWb73qfE5HeQk6gg6RAgEUfxPXks \| Blockchain Explorer] (Sep 12, 2021)</ref></references>

Azoundria at 00:52, 16 February 2023

2023-02-16T00:52:25Z

← Older revision		Revision as of 18:52, 15 February 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/bitfinexhotwallethack.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/bitfinexhotwallethack.php}}
			{{Unattributed Citations}}

	[[File:Bitfinex.jpg\|thumb\|BitFinex]]Bitfinex wat the largest exchange by volume at this time. It stored the vast majority of funds in proper sold storage, and a relatively small amount was in a hot wallet, which was breached.		[[File:Bitfinex.jpg\|thumb\|BitFinex]]Bitfinex wat the largest exchange by volume at this time. It stored the vast majority of funds in proper sold storage, and a relatively small amount was in a hot wallet, which was breached.
Line 8:		Line 9:

	This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.		This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.
			<ref name="kylegibson-86" /><ref name="bitcoinexchangeguide-218" /><ref name="bbc-15" /><ref name="cointelegraph-2238" /><ref name="cryptonews-2239" /><ref name="cryptocompare-2240" /><ref name="masterthecrypto-2241" /><ref name="wikipedia-3014" /><ref name="siliconangle-3019" /><ref name="cointelegraph-3016" /><ref name="bitfinextwitter-3017" /><ref name="bitfinexarchive-3018" /><ref name="reddit-3020" /><ref name="blockchaindotcom-3021" />

	== About BitFinex ==		== About BitFinex ==
Line 41:		Line 43:

	Don't Include:		Don't Include:

	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.		* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
	* Anything that wasn't reasonably knowable at the time of the event.		* Anything that wasn't reasonably knowable at the time of the event.
Line 63:		Line 64:
	\|-		\|-
	\|May 22nd, 2015 12:00:00 AM		\|May 22nd, 2015 12:00:00 AM
	\|~~First~~ Event		\|Main Event
	\|~~This is an expanded~~ description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
Line 76:		Line 73:

	== Total Amount Lost ==		== Total Amount Lost ==
	The total amount lost ~~is unknown~~.		The total amount lost has been estimated at $356,000 USD.

	How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?		How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
Line 87:		Line 84:

	== Total Amount Recovered ==		== Total Amount Recovered ==
	~~It is unknown how much was~~ recovered.		There do not appear to have been any funds recovered in this case.

	What funds were recovered? What funds were reimbursed for those affected users?		What funds were recovered? What funds were reimbursed for those affected users?
Line 100:		Line 97:

	== References ==		== References ==
	[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 24)		<references><ref name="kylegibson-86">[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 25, 2020)</ref>

	[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 4)		<ref name="bitcoinexchangeguide-218">[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 5, 2020)</ref>

	[https://www.bbc.com/news/technology-37009319 Bitfinex users to share 36% of bitcoin losses after hack - BBC News] (Feb 2)		<ref name="bbc-15">[https://www.bbc.com/news/technology-37009319 Bitfinex users to share 36% of bitcoin losses after hack - BBC News] (Feb 2, 2020)</ref>

	[https://cointelegraph.com/tags/bitfinex Bitfinex \| Latest Bitfinex News by Cointelegraph] (Aug 6)		<ref name="cointelegraph-2238">[https://cointelegraph.com/tags/bitfinex Bitfinex \| Latest Bitfinex News by Cointelegraph] (Aug 6, 2021)</ref>

	[https://cryptonews.com/reviews/bitfinex/ Bitfinex Review (2021) - Is It Trustworthy?] (Aug 6)		<ref name="cryptonews-2239">[https://cryptonews.com/reviews/bitfinex/ Bitfinex Review (2021) - Is It Trustworthy?] (Aug 6, 2021)</ref>

	[https://www.cryptocompare.com/exchanges/bitfinex/overview Bitfinex Exchange Reviews, Live Markets, Guides, Bitcoin charts] (Aug 6)		<ref name="cryptocompare-2240">[https://www.cryptocompare.com/exchanges/bitfinex/overview Bitfinex Exchange Reviews, Live Markets, Guides, Bitcoin charts] (Aug 6, 2021)</ref>

	[https://masterthecrypto.com/bitfinex/ Bitfinex Exchange: User Review Guide - Master The Crypto] (Aug 6)		<ref name="masterthecrypto-2241">[https://masterthecrypto.com/bitfinex/ Bitfinex Exchange: User Review Guide - Master The Crypto] (Aug 6, 2021)</ref>

	[https://en.wikipedia.org/wiki/Bitfinex Bitfinex - Wikipedia] (Aug 5)		<ref name="wikipedia-3014">[https://en.wikipedia.org/wiki/Bitfinex Bitfinex - Wikipedia] (Aug 5, 2021)</ref>

	[https://siliconangle.com/2015/05/24/bitfinex-bitcoin-exchange-hot-wallet-hacked-estimated-1474-btc-stolen/ Bitfinex Bitcoin exchange hot wallet hacked, estimated 1474 BTC stolen - SiliconANGLE] (Sep 11)		<ref name="siliconangle-3019">[https://siliconangle.com/2015/05/24/bitfinex-bitcoin-exchange-hot-wallet-hacked-estimated-1474-btc-stolen/ Bitfinex Bitcoin exchange hot wallet hacked, estimated 1474 BTC stolen - SiliconANGLE] (Sep 11, 2021)</ref>

	[https://cointelegraph.com/news/breaking-bitfinex-hot-wallet-hacked-bitcoins-stolen <nowiki>BitFinex's Hot Wallet Hacked, More Than 1,500 Bitcoins Stolen [UPDATE]</nowiki>] (Sep 11)		<ref name="cointelegraph-3016">[https://cointelegraph.com/news/breaking-bitfinex-hot-wallet-hacked-bitcoins-stolen <nowiki>BitFinex's Hot Wallet Hacked, More Than 1,500 Bitcoins Stolen [UPDATE]</nowiki>] (Sep 11, 2021)</ref>

	[https://twitter.com/bitfinex/status/601716397497065473 @bitfinex Twitter] (Sep 11)		<ref name="bitfinextwitter-3017">[https://twitter.com/bitfinex/status/601716397497065473 @bitfinex Twitter] (Sep 11, 2021)</ref>

	[https://web.archive.org/web/20160306151326/https://www.bitfinex.com/pages/announcements?id=35 Bitfinex - Announcements] (Sep 11)		<ref name="bitfinexarchive-3018">[https://web.archive.org/web/20160306151326/https://www.bitfinex.com/pages/announcements?id=35 Bitfinex - Announcements] (Sep 11, 2021)</ref>

	[https://www.reddit.com/r/Bitcoin/comments/36v29t/bitfinex_hack2252015_1459_bitcoins_lost/ Bitfinex hack(22/5/2015): 1459 bitcoins lost : Bitcoin] (Sep 11)		<ref name="reddit-3020">[https://www.reddit.com/r/Bitcoin/comments/36v29t/bitfinex_hack2252015_1459_bitcoins_lost/ Bitfinex hack(22/5/2015): 1459 bitcoins lost : Bitcoin] (Sep 11, 2021)</ref>

	[https://www.blockchain.com/btc/address/17owg8RWb73qfE5HeQk6gg6RAgEUfxPXks Address: 17owg8RWb73qfE5HeQk6gg6RAgEUfxPXks \| Blockchain Explorer] (Sep 11)		<ref name="blockchaindotcom-3021">[https://www.blockchain.com/btc/address/17owg8RWb73qfE5HeQk6gg6RAgEUfxPXks Address: 17owg8RWb73qfE5HeQk6gg6RAgEUfxPXks \| Blockchain Explorer] (Sep 11, 2021)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/bitfinexhotwallethack.php}} BitFinexBitfinex wat the largest exchange by volume at this time. It stored the vast majority of funds in proper sold storage, and a relatively small amount was in a hot wallet, which was breached. The exchange absorbed the loss without impact to customers. This exchange or platform is based in Hong Kong, or the incident targeted people p..."

2023-01-24T20:45:58Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/bitfinexhotwallethack.php}} thumb|BitFinexBitfinex wat the largest exchange by volume at this time. It stored the vast majority of funds in proper sold storage, and a relatively small amount was in a hot wallet, which was breached. The exchange absorbed the loss without impact to customers. This exchange or platform is based in Hong Kong, or the incident targeted people p..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/bitfinexhotwallethack.php}}

[[File:Bitfinex.jpg|thumb|BitFinex]]Bitfinex wat the largest exchange by volume at this time. It stored the vast majority of funds in proper sold storage, and a relatively small amount was in a hot wallet, which was breached.

The exchange absorbed the loss without impact to customers.

This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.

== About BitFinex ==
"Bitfinex is a Hong Kong-based cryptocurrency exchange owned and operated by iFinex Inc., which is headquartered in Hong Kong and registered in the British Virgin Islands." "The Bitfinex exchange is a popular platform for exchanging cryptocurrencies, also hosting spot and derivatives trading as well as certain lending, borrowing and staking features. Bitfinex came into existence in 2012." "BitFinex offers three main functions - it is a pure bitcoin to fiat exchange, a margin trading exchange and a liquidity provider. The platform offers a number of features available that expand the financial positions you can take - for example, the ability to short Bitcoin via margin trading."

"Bitfinex also has its own utility crypto token called Unus Sed Leo (LEO). Because it restricts a number of regions, Bitfinex U.S. customers are not allowed. On Bitfinex, KYC and Anti-Money Laundering procedures are employed." "It serves all except few countries in the world (mentioned below) and supports both fiat-to-crypto and crypto-to-crypto trades. Other notable features include margin trading, limit and stop orders, over-the-counter (OTC) trades, and others. While there are many options available, everything is laid out in an impressively intuitive fashion, with easy-to-navigate dashboards and menus."

"In May 2015, 1500 bitcoins were stolen during a hack." "Bitfinex los[t] 1,500 bitcoin, worth $400,000 at the time, when its hot wallets, connected directly to the internet, are hacked." "Following the hack, Reddit user gowithbtc tracked an estimated 1474 BTC (approximately $356 thousand USD) funneled away from Bitfinex in approximately eight hours."

"Dear Customer although we keep over 99.5% of users' BTC deposits in secure multisig wallets, the small remaining amount in coins in our hot wallet are theoretically vulnerable to attack. We believe that our hot wallet keys might have been compromised and ask that all of our customer cease depositing cryptocurrency to old deposits addresses. We are in the process of creating a new hot wallet and will advise within the next few hours."

"BitFinex’s hot wallet has been compromised. The hack may have resulted in the loss of only 0.5% of the total funds." "The amount represents 0.06 percent of the company’s total holdings."

"BitFinex' Director of Community and Product Development, Zane Tackett, told Cointelegraph that "trading was not affected" and confirmed that the Bitcoin address posted in the article below does indeed belong to the culprit. He also said they have generated a new hot wallet "using a spare-machine designed especially for scenarios like this.""

"Don't deposit to old BTC addresses. New addresses are online and updates will follow soon."

"Bitfinex indicates it will absorb the losses." "Although this incident is unfortunate, its scale is small and will be fully absorbed by the company. Thanks a lot for your patience and comprehension."

This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:

* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - Bitfinex Hot Wallet Hack
!Date
!Event
!Description
|-
|May 22nd, 2015 12:00:00 AM
|First Event
|This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here.
|-
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|}

== Total Amount Lost ==
The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
It is unknown how much was recovered.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
In this case, there were no customer losses.

Greater security can be obtained by storing more funds in offline multi-signature storage, and signing specific transactions for larger withdrawals.

== References ==
[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 24)

[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 4)

[https://www.bbc.com/news/technology-37009319 Bitfinex users to share 36% of bitcoin losses after hack - BBC News] (Feb 2)

[https://cointelegraph.com/tags/bitfinex Bitfinex | Latest Bitfinex News by Cointelegraph] (Aug 6)

[https://cryptonews.com/reviews/bitfinex/ Bitfinex Review (2021) - Is It Trustworthy?] (Aug 6)

[https://www.cryptocompare.com/exchanges/bitfinex/overview Bitfinex Exchange Reviews, Live Markets, Guides, Bitcoin charts] (Aug 6)

[https://masterthecrypto.com/bitfinex/ Bitfinex Exchange: User Review Guide - Master The Crypto] (Aug 6)

[https://en.wikipedia.org/wiki/Bitfinex Bitfinex - Wikipedia] (Aug 5)

[https://siliconangle.com/2015/05/24/bitfinex-bitcoin-exchange-hot-wallet-hacked-estimated-1474-btc-stolen/ Bitfinex Bitcoin exchange hot wallet hacked, estimated 1474 BTC stolen - SiliconANGLE] (Sep 11)

[https://cointelegraph.com/news/breaking-bitfinex-hot-wallet-hacked-bitcoins-stolen <nowiki>BitFinex's Hot Wallet Hacked, More Than 1,500 Bitcoins Stolen [UPDATE]</nowiki>] (Sep 11)

[https://twitter.com/bitfinex/status/601716397497065473 @bitfinex Twitter] (Sep 11)

[https://web.archive.org/web/20160306151326/https://www.bitfinex.com/pages/announcements?id=35 Bitfinex - Announcements] (Sep 11)

[https://www.reddit.com/r/Bitcoin/comments/36v29t/bitfinex_hack2252015_1459_bitcoins_lost/ Bitfinex hack(22/5/2015): 1459 bitcoins lost : Bitcoin] (Sep 11)

[https://www.blockchain.com/btc/address/17owg8RWb73qfE5HeQk6gg6RAgEUfxPXks Address: 17owg8RWb73qfE5HeQk6gg6RAgEUfxPXks | Blockchain Explorer] (Sep 11)