The 2015 Bitstamp, 2015 Bitfinex, and 2017 Tether Hacks are Connected

Acknowledgements: I would not have been able to complete this as thoroughly as I did without building off existing work. It needs to be pointed out that years ago u/SpeedflyChris (archive) pointed out these same connections. I also relied heavily on WalletExplorer.com a tool created by Aleš Janda.

In January of 2015 Bitstamp was hacked in what they described as a phishing attack. (Archive) These funds were withdrawn to 1L2JsXHPMYuAa9ugvHGLwkdstCPUDemNCf (referred to as 1L2 for the remainder of this piece for convenience) at first. Bitstamp also sent funds to 1AXsTbi4sSH1M5hccgdEVn5et9xFd7Bxpd (referred to 1AX) and 16KYFJiAoM4aX82xw2V3YBHX72trWNhz48 (referred to as 16KY). All 3 of these addresses which received withdrawals from Bitstamp were part of the same wallet and this can be determined by reviewing the transactions where they ‘co-spent’ or both provided inputs to a transaction, suggesting the same person could sign for both addresses. 1L2 and 1AX co-spent in transaction 7e80957db4514d150899b308b0472b51ce7b3dbd979f2b3e80681cb9067dac13 and 16KY and 1L2 co-spent in transaction 41afc875a478acdf322ea37e6edcd3878627e6d0b4a6c4de280708c822670b2a. This suggests the 2015 Bitstamp hacker was receiving funds from Bitstamp as late as December 19th 2018 in transaction 4a05c4347d5cf797f7eeacc1d1b6881ef9e4e71195025bb3275a18f495b988be. That is a LONG hack.

Continue reading “The 2015 Bitstamp, 2015 Bitfinex, and 2017 Tether Hacks are Connected”

$ALCX: Alchemix Cannot Turn Lead to Gold

There is a brand new DeFi protocol that lets you immediately take out a loan for half your collateral and the protocol will automatically pay back your loan. Financial magic, involving transmuting one coin, into another, while depositing one in a pool, magically you can get a loan and have no risk of liquidations (not really but that’s what people are claiming [1, 2, 3, 4, 5, 6, and the coup de grace their website (archive)]). I think this protocol is flawed. You can find the whitepaper here. (Archive) (My copy)

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My Second Conversation with Cas Piancey on ‘Tether: A Stable Discussion’: Solvency and Backing

PART ONE CAN BE FOUND HERE

PART THREE CAN BE FOUND HERE

Cas Piancey, my writing partner and friend, and I are doing several episodes on the history and controversy surrounding Bitfinex and Tether.

This episode is mostly focused on the post hack history. We discuss banking, insolvency, and unbacked Tethers.

You can find the episode here: https://anchor.fm/cas-piancey/episodes/Tether-A-Stable-Discussion-Part-II-es1dgc/a-a4sa0qn

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My Conversation with Cas Piancey on ‘Tether: A Stable Discussion’

PART TWO CAN BE FOUND HERE

PART THREE CAN BE FOUND HERE

Cas Piancey, my writing partner and friend, and I are doing several episodes on the history and controversy surrounding Bitfinex and Tether.

This episode is mostly focused on the early history of Bitfinex and Tether, leading up to the second Bitfinex hack. Next episode we should hopefully get into some of the backing issues that the New York Attorney General helped expose.

You can find the episode here: https://anchor.fm/cas-piancey/episodes/Tether-A-Stable-Discussion-erhp88/a-a4qn2vm

To subscribe to my blog please enter your email:

A Conversation about the Future of Finance

This story was inspired by this tweet.

“Bro, you gotta get in on this. I think I have discovered the future of finance.”

Continue reading “A Conversation about the Future of Finance”