From r/BitcoinMarkets on Reddit
BTCVix comments sharing Drak's 'warning' to Zane at Bitfinex
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[–]pitchbend 11 points 2 days ago Bitfinex is the only exchange with good liquidity where you can trade with margin and without providing KYC/AML info as long as you deposit/withdraw with crypto. That's why people keep using them, they are trying their best to payback users (it looks like they might succeed) and there is really no alternative. permalinkembedsavereportgive goldreply
[–]h3rlihy 12 points 1 day ago I honestly think they are doing a cracking job recovering the only way they reasonably can permalinkembedsaveparentreportgive goldreply
[–]BTCVlX 0 points 1 day ago they however should have never gone against the tried and true method of the cold/hot wallet system in favor of a 3rd party all hot system against the advisement of core devs. It is still unexcusable quite frankly and a reason a I left BFX 2 years prior because I could see the growing incompetence problem permalinkembedsaveparentreportgive goldreply
[–]bfx_drew 2 points 13 hours ago
against the advisement of core devs Get your facts straight.
[–]BTCVlX 0 points 8 hours ago you mean the facts of the hack that you released in a timely matter ? oh yeah that is right still 6 months later you have posted nothing regarding to how the hack happened -- also on hangout btcdrak discussed with Zane the issues regarding multi-sig not being cold storage. permalinkembedsaveparentreportgive goldreply
[–]MrChrisJ 1 point an hour ago
also on hangout btcdrak discussed with Zane the issues regarding multi-sig not being cold storage.
Link please. Paging /u/btcdrak & /u/zanetackett I'd love to get this hearsay dealt with once and for all. If you have facts I'd love to learn more but I do require direct evidence. I have already asked but not yet received anything.
Feel free to reach out in public or private. permalinkembedsaveparenteditdisable inbox repliesdeletereply
[–]BTCVlX 1 point 59 minutes ago* also on hangout btcdrak discussed with Zane the issues regarding multi-sig not being cold storage. I will have to dig through archives again I had it timestamped -- do know I have 100s of hours to dig through to find the exact part including both listed and unlisted recordings, it is actually one that is in regards to just Zane and drak talking about proof of reserves not to BFX specifically but it still applies, Zane is going on and on about how great proof of reserves and multi-sig is and drak is detailing how that doesn't inherently mean more transparency or security as drak has said many times in public how the whole proof of reserves angle is a snakeoil sold to exchanges.
Edit: Here is the episode where proof of reserves and multi-sig is discussed between drak and Zane https://www.youtube.com/watch?v=Mk4Dl4aaBuo&index=20&list=PL-1FPbuCqlhXXJg0JQOJRRBKpv4uCCpuD
With that said it is no secret that BFX mislead traders as far as their roll out of BitGo -- it was initially pitched as a way to show users that BFX wasn't doing fractional reserve with their BTC holdings but Phil revealed not to long ago it was actually done as a benefit to BFX when dealing with LE, they could simply point them to the address and not have to provide more information, this is supported not only by Phil's own admission on TS but also the fact that very few people were interested in opting into the proof of reserves style system that eventually without any knowledge of the traders everyone became a user of that system without the ability to opt-in/out or even be informed of the new system.
Edit: Here is the episode where we discuss BitGo and BFX and what they supposedly offered: https://www.youtube.com/watch?v=LWrjixFzsMQ&list=PL-1FPbuCqlhXXJg0JQOJRRBKpv4uCCpuD&t=100s&index=12
Edit: Phil Potter : "We recieved so many LE requests that we wanted to take ourselves out of the process with segregated wallets" https://www.youtube.com/watch?v=PoM7X7TI5YM&t=3s You will have to ask swap why the video got taken down but it was there and that is the direct quote from the video : http://imgur.com/a/mo7zR === End Paste ===