Coinbase to Confirm $5B Move in Crypto

$5 billion is 5% of the Bitcoins held by the company, 8% of the Ethereum and 25% of Litecoin of Coinbase's customers
20 December 2018   642

The largest US cryptocurrency company Coinbase has confirmed information about the recent movement of cryptoactive assets for large sums, reports CryptoGlobe.

Company plans to significantly expand the number of cryptoactive assets supported. For this purpose it is necessary to radically rethink approaches to the storage of funds on the platform, the sums of which amount to billions of US dollars, Coinbase believes

In this regard, Coinbase transferred customer funds totaling about $ 5 billion to the updated vault. In particular, 5% of the Bitcoins held by the company, 8% of the Ethereum and 25% of Litecoin were moved.

According to Coinbase security head Philip Martin, planning the process of moving coins took about four months.

This was a fundamentally new architecture from the ground up. Regulators and auditors were involved at every stage… One of the biggest things we were worried about is that we don’t move the market with this event, which is why we went to such lengths to coordinate with regulators and manage media speculation around the movements. 

Philip Martin

Security Head, Coinbase

At the first stage, a new key generation process was launched in October. During it, the Coinbase team went to a safe location, equipped with new computers, to print the keys, which were then divided into different parts.

We take the private key and apply a cryptographic technique called Shamir’s Secret Sharing, which is an algorithm that’s used to take a piece of private data and split it into a bunch of chunks you can divide. There’s a threshold splitting system because you can define a threshold by less than the total number of pieces that are sufficient to reconstruct the original.

Philip Martin

Security Head, Coinbase

After that, the keys are distributed between different safe locations. At the same time, for their further unlocking, several Coinbase employees are involved, who communicate with each other by telephone. 

Hacked Zaif Exchange to Resume Operations

It was hacked in September last year,  about $60 million in cryptocurrency was stolen from its platform
22 April 2019   83

Japanese cryptocurrency exchange Zaif announced that it will complete the transition from the Tech Bureau to the Fisco Digital Asset Group (FDAG) on April 22 and resume normal operation the next day, Cointelegraph reportes.

In September last year, the exchange underwent a hacker attack when about $ 60 million in cryptocurrency was stolen from its platform, including Bitcoins, Bitcoin Cash and Monacoin. As part of the compensation plan to users, FDAG exchange acquired a large stake in Zaif business and transferred to the Tech Bureau over $ 44.6 million.

According to an earlier announcement of the exchange, 40% of the lost funds will be compensated to users by Fiat, and the remaining 60% - to the cryptocurrency, which will be available for withdrawal on April 23.