Coinbase Custody gets 'hacked'. What happens next? \ stacker news ~bitcoin

Coinbase Custody gets 'hacked'. What happens next?

213 sats \ 11 comments \ @_b_o_n_e_s_ 14 Jan bitcoin

As more and more bitcoin IOUs pile up in Coinbase care of the ETFs you have to imagine people with an interest in bitcoin not succeeding would benefit from Coinbase (ie the US exchange) getting 'hacked'.

Is Coinbase getting setup to fail, and the failure be the catalyst for even more draconian regulations to finally get pushed through Congress?

What would happen if Coinbase got hacked?

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180 sats \ 1 reply \ @netstatic 14 Jan

If they got hacked and a bunch of stolen coins were dumped on the open market then the exchange value of Bitcoin would be the first worry, but the second worry would be the push for the seizure of any wallets with coins that could be traced back to the hack. A fork might even be possible and if Coinbase was the party at fault, they might make the original Bitcoin "Bitcoin Classic" or delist it altogether. I'd hope that the global adoption of Bitcoin would shield against arbitrary attempts to change the chain so a fork like this is unlikely from my personal perspective.

0 sats \ 0 replies \ @_b_o_n_e_s_ OP 14 Jan

Yeah right. Coins would go through privacy tools so its how they force the issue on privacy and KYC.

183 sats \ 1 reply \ @k00b 14 Jan

Even if they have insane measures in place, the likes of which we'd probably struggle to appreciate, anything a man can make another man can break.

51 sats \ 0 replies \ @_b_o_n_e_s_ OP 14 Jan

Exactly. So we should expect the so-called hack. Especially when it benefits particular parties.

What happens next, after the hack?

170 sats \ 1 reply \ @OriginalSize 14 Jan

First of all, not your keys. Second and more importantly Bitcoin isn't POS so when Coinbase gets hacked, the Bitcoin blockchain will continue to march on. Those of us who recognize custodial danger will continue to observe the rules we agree with, whatever legal and naming games come after that.

0 sats \ 0 replies \ @_b_o_n_e_s_ OP 14 Jan

My node's right there with you. Just trying to think through what may happen when it does happen.

If it's in many powerful parties best interests that bitcoin doesn't succeed, then I think it's a when not if type scenario. So was just trying to think through what happens in the following weeks/months

52 sats \ 1 reply \ @TNStacker 14 Jan

Stack Sats and stay humble. Armstrong can't have my bitcoin.

0 sats \ 0 replies \ @_b_o_n_e_s_ OP 14 Jan

yes, the plan from the beginning

42 sats \ 1 reply \ @riberet19 14 Jan

If Coinbase is hacked, knowing that it is the most important exchange in the United States as far as I know, congress would make drastic decisions, or as you say, draconian regulations, but I don't think this will happen, but seeing what has happened in the crypto world in the past, you can expect anything, the best thing you can do is self-custody your Bitcoin, Nothing more than that and you'll have little to worry about.

0 sats \ 0 replies \ @_b_o_n_e_s_ OP 15 Jan

100%. Self custody is unbelievable. There's no way it's priced in.

Being able to laugh hysterically like a mf as all the chaos of past year plus unfolds is one of the best feelings in the world.

Sorry, yes, was just trying to think through what would happen next. It's a centralizing factor, so more just spit balling because I think its more of a when than an if.

0 sats \ 0 replies \ @_b_o_n_e_s_ OP 14 Jan

You can imagine it being spun as the ultimate 'we told you so' slash redemption arc for tradition banks, from the likes of Senator Warren