BitGo has declared that its systems were not breached, and its software functioned correctly during the Bitfinex hack. Co-founder and CEO at…
BitGo has declared that its systems were not breached, and its software functioned correctly during the Bitfinex hack.
Co-founder and CEO at BitGo, Mike Belshe, wrote on the company's blog saying:
Our job is to protect your Bitcoin and continue to improve the security of the service. BitGo systems were not breached in this attack and our software functioned correctly. This may seem like an inadequate explanation, because everyone wants to know “what needs to change to avoid what happened in this case,” and we understand that. Fortunately, the Bitfinex configuration was unique and other BitGo customers do not need immediate changes.
This view comes after several calls from among the bitcoin community that Bitgo should be held liable for the Bitfinex hack. There were insinuations that insiders at either Bitfinex or Bitgo were involved in the hack.
Bitfinex utilized BitGo software as part of its security solution even as at the time of the attack. The bitcoin exchange lost nearly $70 million worth of bitcoin to hackers on August 2 following a security breach. Its operations have been halted ever since even though the breach was limited to bitcoin wallets and other digital tokens traded were unaffected.
New reports are suggesting that bitcoin traders of Bitfinex will now have to face paying the cost of the theft as the company considers leaning toward a socialized loss scenario.
The non-enforcement of any security limits that allowed the withdrawal of the bitcoins was topical. An unfounded claim has it that limits on Bitfinex's API must have been lifted. The critical issue focuses on why BitGo allowed around 120,000 BTC to be withdrawn from thousands of Bitfinex users in three hours.
In the wake of this event, however, this is an opportunity for everyone to do an in-depth review of their security processes and risks. In the event your systems are compromised, what is your maximum exposure?
For the record, we will never let our silence in an active investigation impede our duties to inform you of security risks in your own wallets. Security isn’t static, and neither are we. If we need to make changes to ensure security, we are dedicated to doing so quickly and comprehensively.
Belshe said he has not been able to provide answers to several users' questions in the last 48 hours “due to an active investigation." But he stated that they have worked tirelessly with the team at Bitfinex to investigate the theft and where the stolen bitcoin is gone.
Bitfinex has said it is currently in an ongoing process of restoring limited functionality in a secure environment. The exchange is working to bring the site online and allow users to login and view the state of their accounts. However, initial trading, deposits, withdrawals, and other core site functionality will be disabled.
Featured image from Shutterstock.
Last modified (UTC): August 10, 2016 9:09 PM