While the world is talking about the latest Binance hack which saw 7,000 BTC stolen, the major breaking news comes from Bitcoin Core developers who advised that they can perform a “coordinated reorg” to reverse Bitcoin transactions at will. This admission from Bitcoin itself has finally laid to rest many of the false promises of the Bitcoin system (and all other Proof of Work tokens for that matter) and proved:
- Bitcoin is CENTRALISED
- Bitcoin in not immutable
- Bitcoin is prone to 51% attacks
- Bitcoin is not secure
- Bitcoin is not a “store of value”
- Bitcoin is completely worthless
With large scale institutional investor exchanges like Fidelity and Bakkt opening up soon and with Japanese regulators set to outline their crypto and blockchain proposals to the G20, the question has to be posed whether Bitcoin will be killed off this year or whether the world leaders will fly in the face of climate change and the devastating environmental disaster that is Bitcoin and whether Wall Street and other financial giants will try and wring every last drop out of this epic BTC ponzi scam?
Bitcoin devs advise CZ Binance they can reverse the Bitcoin blockchain and undo transactions
Jeremy Rubin (Bitcoin Core Dev) – “if you reveal your private keys for the hacked coins (or a subset of them) you can decentralized-ly at zero cost to you, coordinate a reorg to undo the theft.”
@cz_binance if you reveal your private keys for the hacked coins (or a subset of them) you can decentralized-ly at zero cost to you, coordinate a reorg to undo the theft.
— Jeremy Rubin (@JeremyRubin) May 8, 2019
CZ Binance – “After speaking with various parties, including
@JeremyRubin, @_prestwich, @bcmakes, @hasufl, @JihanWu and others, we decided NOT to pursue the re-org approach.”
CZ Binance – “cons: 1 we may damage credibility of BTC, 2 we may cause a split in both the bitcoin network and community. Both of these damages seems to out-weight $40m revenge.”
— CZ Binance (@cz_binance) May 8, 2019
Binance Security Breach Update:
Binance press release 08/05/2019:
We have discovered a large scale security breach today, May 7, 2019 at 17:15:24 (UTC). Hackers were able to obtain a large number of user API keys, 2FA codes, and potentially other info. The hackers used a variety of techniques, including phishing, viruses and other attacks. We are still concluding all possible methods used. There may also be additional affected accounts that have not been identified yet.
The hackers were able to withdraw 7000 BTC in this one transaction:
The above transaction is the only affected transaction. It impacted our BTC hot wallet only (which contained about 2% of our total BTC holdings). All of our other wallets are secure and unharmed.
The hackers had the patience to wait, and execute well-orchestrated actions through multiple seemingly independent accounts at the most opportune time. The transaction is structured in a way that passed our existing security checks. It was unfortunate that we were not able to block this withdrawal before it was executed. Once executed, the withdrawal triggered various alarms in our system. We stopped all withdrawals immediately after that.
Binance will use the #SAFU fund to cover this incident in full. No user funds will be affected.
We must conduct a thorough security review. The security review will include all parts of our systems and data, which is large. We estimate this will take about ONE WEEK. We will post updates frequently as we progress.
Most importantly, deposits and withdrawals will need to REMAIN SUSPENDED during this period of time. We beg for your understanding in this difficult situation.
We will continue to enable trading, so that you may adjust your positions if you wish. Please also understand that the hackers may still control certain user accounts and may use those to influence prices in the meantime. We will monitor the situation closely. But we believe with withdrawals disabled, there isn’t much incentive for hackers to influence markets.
In this difficult time, we strive to maintain transparency and would be appreciative of your support.
PS, I (CZ) will continue the previously scheduled Twitter AMA in a couple of hours.
Keep up to date on the environmental cost of Bitcoin and Ethereum with Digiconomist
#energy footprint for one #Bitcoin transaction (428 KWh) equates to:
- 1 US household 14 days (DE: 44, CN: 120)
- 283768 VISA TRXNs
#CarbonFootprint per TX: 203 KG
- Driving 835 miles in a Tesla
- 250 in a Hummer
#Ewaste per TX: 59 grams
#Bitcoin Energy Consumption Index is:
- 59.023 TWh per Year
- 5.47 Mil US households (+0.3%)
The #energy footprint for one #Bitcoin transaction (428 KWh) equates to:
-1 US household 14 days (DE: 44, CN: 120)
-283768 VISA TRXNs#CarbonFootprint per TX: 203 KG
-Driving 835 miles in a Tesla
-250 in a Hummer#Ewaste per TX: 59 gramshttps://t.co/3rbPhSikdD
— Digiconomist (@DigiEconomist) May 7, 2019
428.5 KWh per unique transaction (powers 1 US household for 14.5 days) #MakeBitcoinSustainable
— Digiconomist (@DigiEconomist) May 7, 2019