Cold storage bitcoin reddit
The amount of incompetence necessary to lose that many Bitcoin this way is truely unfathomable. Offline wallets are generated from an offline system and kept in paper format in three separate locations, using a technology based on raid. So if that is true there is no way MtGox could have lost bitcoins as described above. Either this quote is a bold faced lie, or something else is going on. Karpeles strikes me as less than competent, but not this big of a liar.
Government for allegedly operating without a license in the United States. In January we learned from the testimony of Federal officials that the claim that MtGox was operating with a license which it may have been was largely used by the Federal Government as a cover for an investigation into the Silk Road.
Recent testimonies by federal agencies indicate that the account seizures were in fact related to the multi-year pursuit of Silk Road operators, rather than a crackdown on money transmission infractions for their own sake. In particular, the written statements not aired on television provide additional insight into the motives behind the seizures. If federal agents made known at the time that they were actively pursuing Silk Road it could interfere with their ongoing investigation.
This also means that, at least in this case, it appears money transmission laws were enforced on Mt. Gox not simply for their own sake, but to gain insight and hinder the capital flow to Silk Road without exposing the larger goal of shutting down the international narcotics marketplace.
In fact, he largely admitted as much in an IRC chat:. This person posted the story of his one-man protest out front of MtGox and his run in with Gay-Bouchery on Reddit. So it seems plausible that in the course of investigating Silk Road the U. What does that mean? This quote makes a lot more sense if the bitcoins were, in fact, seized.
Also, in the same interview when asked if he had anything else to say Karpeles linked to a meme on the site 9 GAG:. So this theory may turn out to be completely wrong, but given the circumstantial evidence and the extreme improbability of official story this seems the most likely explanation at the moment.
I doubt there is any precedent of the us govt forcing an entity under investigation into bankruptcy in such a manner, especially when american investors have significant funds involved.
I can see why most libertarian-leaning investors might subscribe to this theory though. This is why you keep your coins stored on your own hardware, and then encrypted backed up on multiple cloud storage systems. This was exactly what my hunches were, thanks for posting it! I suspect an even more sinister scenario such as massive intimidation… would not be surprised if Karpeles is silenced for good. The new FED chairwoman said: I am sure, she means it. Very well written article. It will be helpful to anyone who usess it, as well as yours truly fbdkdeeccddd.
You are commenting using your WordPress. You are commenting using your Twitter account. You are commenting using your Facebook account. Notify me of new comments via email. Notify me of new posts via email. MtGox was ignorant of the transaction malleability issue despite it being known for years and there being a wiki page dedicated to it. They tracked transactions improperly given the malleability issue this may or may not have happened.
They automatically reissued transactions when the transaction ID showed an unconfirmed transaction rather than requiring human intervention by a customer support agent. Open Source software is vetted by the community making it less likely to have security holes. They also have some great open source plugins that extend the functionality of the software.
Keep in mind, some the plugins may reduce your security, but you can always have multiple secure KeePass DBs with different levels of security. You can use pretty much any thumb drive, but there are some more advanced ones out there that have a physical pin system and can even erase all the data on the drive after too many attempts. Considering that your more frequently used passwords will need to be accessible on your desktop, phone and other work areas, you are going to want to keep that KeePass database in the cloud somewhere.
Below are some options:. Great open source cloud storage solution. This is a bit more advanced to setup, but you don't have to be at the mercy of private companies. While some may not think Google Drive is the safest place to keep your data, you can visit the Google account security settings and make sure you have all the advanced security options turned on.
Did I mention double authentication? Google also allows you to use a physical key like the YubiKey mentioned later in this guide. The only multi-chain wallet that works on practically every platform. They use the HD wallet protocol as well:. Great tool, great team behind this site. A cold storage wallet could be as simple as a paper wallet. You can make a Bitcoin one here https: It connects to any computer USB and embeds a secure OLED display to double-check and confirm each transaction with a single tap on its side buttons.
One of the most versatile hardware wallets on the market. Easy to use, ultra secure with a great interface. If you don't have some sort of 2-factor authentication, you are leaving yourself up to be hacked.
If any system you encounter allows for 2-factor authentication. Make sure to set it up, even if it uses SMS messages for verification. Make note though, that SMS authentications can be hacked if someone clones your phone or uses social engineering with your phone company to take control of your device. It's very easy to do. Make sure you call your mobile phone company and set a verbal password or pin on your account.
Someone can still compromise this believe it or not. Someone recently got hacked on coinbase. Authy provides some extra functionality that Google Authenticator does not. Here is a thread on Reddit discussing the hack and ways the user could have prevented it while using authy: Many systems allow you to use your mobile phone number as a back up and as a double authentication device.
Try not to use your actual mobile phone number. Use another SMS enabled number. An easy way to do this, is creating a separate google account and setup Google voice number on that account.
That way even if a hacker gains access to your phone the verification will be sent to another phone number. This is a physical key that you can plug into your computer or use with NFC on your phone.
This combined with KeePass can make an ultra difficult static password or one-time password system. You don't want to get Goxed so pick your exchanges wisely and never leave to much in any exchange. Remember you do not control the keys. You will need to get some core crypto currencies somewhere else, before you start collecting alternate coins, Shapeshift makes it easy.