Te the aftermath of the latest theft of more than $65 million worth of bitcoins from Bitfinex, parts of the Bitcoin community have bot wondering what role BitGo’s multisig-focused security suggesting may have played ter the entire ordeal.
According to the company’s webstek, BitGo treats more than Ten,000 Bitcoin transactions vanaf day and helps its users transfer more than $1 billion worth of value vanaf month. Many exchanges, such spil Bitstamp and Openleggen, use BitGo’s services.
Bitcoin Tijdschrift reached out to Bitstamp Head of Business Development Vasja Zupan to get the exchange’s thoughts on BitGo ter light of the latest hack.
Sticking with BitGo
When asked whether Bitstamp has had any 2nd thoughts about its use of BitGo’s multisig architecture, Zupan wasgoed quick to come to the blockchain security company’s defense. “For now, Bitstamp does not see any reason for 2nd thoughts about using BitGo’s technology,” he said. “We believe that decent implementation, regular audits, and overall strong security policies make all the difference.”
Zupan went on to point out that Bitstamp wasgoed the very first exchange to implement the combination of cold storage with a multisig hot wallet. “We are certain ter our system,” he added.
Differences with the Bitfinex Setup
While some traders may be worried Bitstamp is using the same security suggesting used by Bitfinex during the hack, Zupan attempted to ease thesis worries by pointing out that Bitstamp’s multisig implementation is “fundamentally different from that of Bitfinex.”
“Bitstamp uses BitGo exclusively for its hot wallet, where only a petite amount of bitcoins are kept (below Two procent),” Zupan continued. “The vast majority of our bitcoins are stored offline ter cold storage.”
Bitstamp wasgoed the victim of a hack te January of . More than $Five million worth of bitcoin were stolen te the theft. The good news wasgoed that, unlike Bitfinex, the vast majority of Bitstamp’s funds were held te cold storage. Ironically, it wasgoed this hack that prompted Bitstamp to playmate with BitGo for its multisig security suggesting.
Zupan also discussed other aspects of how his company’s exchange is structured to reassure traders that its system is secure.
“Aware that monitoring is crucial te the industry, wij are the very first imaginario currency exchange to get formal oversight te place,” he said. “A key component of this is our recently acquired licence, which requires onveranderlijk outer financial audits, code reviews and invasion tests, examinations and the regular reporting of our financial balances. This provides the security our users require.”
“In our view, this unfortunate incident only serves to further confirm the importance of compliance, corporate governance, regulatory monitoring and auditing for imaginario currency services,” Zupan added. “We, of course, hope that this punt will be resolved quickly and with a positive outcome for Bitfinex and its customers.”
Reasoning Behind Bitfinex’s Storage Setup
One of the main questions being asked of Bitfinex ter the aftermath of the hack is why it determined to eliminate the cold storage opzicht of its storage setup. This question wasgoed at least partially answered by Bitfinex’s Zane Tackett on the Whalepool Teamspeak server overheen the weekend.
“There were a lotsbestemming of reasons for why wij went with this implementation with BitGo, one, a big one, wasgoed transparency,” said Tackett. “Everyone has their own wallet that they can witness on the blockchain. They can see their bitcoin at any time, and wij lodge it merienda vanaf day.”
Tackett argued that since Bitfinex offers such a high level of transparency, it is incapable to voorkant things up when funds are lost or stolen. The details of how the exchange will secure its bitcoins ter the future are unknown at this time.