Will Bittrex to do the right thing?

in Ask the Hive2 years ago (edited)

A ”white-hat hacker” has apparently triple crossed Steemit and sent the stolen funds to @bittrex (without an account specific memo).

Assuming this would take KYC and possibly a platform for victims of the fork to verify and collect —do you trust the exchange to find and reimburse the funds back to their original owners?


Bittrex has a reputation, they will do the right thing

This sounds like a huge karma moment. Assuming that Bittrex helps to get the stolen funds back, this basically means that the people on the list can actually skip the power down time, right? Because unlike the Hive stalling of funds in steem.dao which demands witness consensus to do anything with it, this actually was "stalled" as liquid STEEM...

Makes for a great end to this whole ordeal. Bittrex is one of my fav exchanges and the only one I use to trade Hive. Not that I stand to gain in any way (minnow life) but I can see where this is a HUGE potential win for the witnesses involved.

I am still confused, why hasn't he sent it to blocktrades or anyone's Bittrex account rather than directly to Bittrex. I am liitle specticle about it, lets see how it turns out.

blocktrades is among the accounts that has been wiped, it's not safe there...

Ah, I see what you mean now... hm that would be risky because you would have to fish out the memo from the transaction records and it's not guaranteed that they would react to that properly...

Yes, nothing is guaranteed but again given the reputation these exchanges have, I am skeptical about Bittrex doing the right thing.

They just put out a comment about following the Blockchain as authoritative, however it came to the conclusion to do that. I can follow that reasoning, which is also why the correct response to one person getting the power to do a full 51% attack every single time like Justin Sun got is "run away as fast as you can". That said, seeing this response I think this can go several ways.

  • Justin Sun can make a convincing case for hacking and theft which will "return" the funds to him. This would however strictly identify him as behind the specific account and he will carry the blame he is trying to avoid.
  • The funds will be returned to the account, which is in the hands of our White Knight and who can make decisions following this action. This would also legitimize their position to actually return the funds.
  • Bittrex will say thanks, I will keep this. That would be very stupid and fully destroy their reputation
  • The funds will actually be returned to their original owners. This can still be framed as not admitting theft by the hardfork if the legitimacy of the sending to bittrex is stated.

None of these seem very probable to me tbh seeing their current statement. I think as such probably the funds will be locked at Bittrex for some time until a formal narrative has been made up that law enforcement agrees with about actions that occurred, which might very well be what the White Knight is after: a public statement about the nature of the actions.

Wow, you summarised it perfectly well. I guess that's might be the motto White Knight to show the world that Steem is stoled from the account and it should not be sent back until and unless someone accepts that they have stolen it.

I believe that's why it's considered a white hat hack.

The hero wipes all records of their actions by blindly sending it to Bittrex; putting the burden on them to 'do the right thing' and return the stolen funds to the owners.

If it was sent to a personal account or specific account via memo, the funds would be a lot easier to trace and freeze if requested by regulators/officials for whatever reason. Given that they now fall into an exchange pool, it's up to @Bittrex to distribute accordingly or risk their reputation.

I think they will do the right thing, even if only to appease the community and shine again as the top Hive exchange.

If Biitrex does the right thing than that will great, but seeing the history of so many exchanges which are great freinds of our Sun, I doubt Bittrex will do the right thing