Fingerprinting cryptocurrency company management is a good idea.
[1] http://qz.com/753958/the-65-million-bitfinex-hack-shows-that...
Fingerprinting cryptocurrency company management is a good idea.
[1] http://qz.com/753958/the-65-million-bitfinex-hack-shows-that...
You should also note that Bitfinex used to have a much more secure setup, with most of its Bitcoins being stored in cold, offline storage. However, US regulation required them to use segregated accounts for each user. Under such a requirement, the cold storage variant does not work any more, so they moved to keep everything online so they could physically move the Bitcoins back and forth as they were used for margin loans within Bitfinex. It was too much misguided regulation that made them vulnerable in the first place.
I want the CFTC interference to be the primary issue, though- it certainly fits the narrative and would be a great lesson going forward.
Note: I also lost money on the hack.
And if accounts had to be segregated then losses should have been segregated too, not socialised.
And I got out of Mt. Gox way before it hit the wall because it lacked any similar re-assurances.
Impossible? Hardly. You can count the good ones on your fingers and they are not hard to spot.
We already have federal MSB regulations, and should solve this at the federal level. The proliferation of state MSB regulations make it incredibly expensive for new fintech companies to compete against incumbents and internationally.