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111 sats \ 3 replies \ @freetx 7h \ on: South Korean crypto firm accidentally sends $44 billion in bitcoin to users bitcoin

hmmm...earlier this was reported as 2000 btc total, now they are saying to each person?

That would imply that exchange held that much btc....is that realistic? 500K btc?

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102 sats \ 2 replies \ @optimism 6h

What makes you think these exchanges hold the Bitcoin they say they have in user accounts?

It's fun when there are runs - sometimes we get to spot the naked ones. But not always. Because you just call finex/tether for a bailout

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132 sats \ 1 reply \ @freetx 5h
What makes you think these exchanges hold the Bitcoin they say they have in user accounts?

I suspect the truth is somewhere in between. The "fat finger" was a SQL entry that credited each account with 2000 BTC each, of which some clever users immediately took those offsite and drained the very insufficient BTC balance that the exchange actually had.

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28 sats \ 0 replies \ @optimism 5h

In this case they definitely had an issue, haha. But in general, I'm not sure that exchanges hold full reserves. Bitstamp however is compliance-oriented, which is why we learned about it in the first place, I guess.

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