1. See BitFinex Terms of Service (accessed 09-Aug-2016)
2. See the BitGo White Paper (accessed 09-Aug-2016)
3. See the BitGo’s BitFinex Breach Update (accessed 09-Aug-2016)
Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
The main problem seems to be that BitGo and Bitfinex agreed on a scheme where BitGo would sign transactions without any responsibility to ensure that they aren't obvious theft transactions. There is no point in BitGo's signature being required if BitGo does whatever Bitfinex tells them to and has no responsibility whatsoever. Whatever Bitfinex did to tell BitGo to sign a transaction they could just as well have done to sign it themselves. The reason for a second party is to require two completely independent points of failure. If one completely controls the other, they are effectively one party.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit