Re: CRYPTSY stopping withdraw locking accounts without notifying users! Class Action
Question: Why is your pretend COLD WALLET connected to a live network, thus negating the term COLD WALLET?
Prosecutor: Paul Vernon, please explain how a cold wallet is secure.
PV: Sure. Coins are put in a safe then locked, and the key is tossed into a live volcano.
Prosecutor: So, how were Cryptsy's coins stolen?
"Somebody found the key."
"I wonder where that key goes to
and why its hid inside this chicken."
Prosecutor: Paul Vernon, please explain how a cold wallet is secure.
PV: Sure. Coins are put in a safe then locked, and the key is tossed into a live volcano.
Prosecutor: So, how were Cryptsy's coins stolen?
"Somebody found the key."
"I wonder where that key goes to
and why its hid inside this chicken."
I don't know the specifics of Craptsy's setup, but if you have the private key for a wallet, you don't need it to be online to make & broadcast a tx...
That being said, once again Craptsy fails with simple security...
They could have had a cold wallet on a computer that has never been connected to the interwebs. Use it to create a tx, but then broadcast the tx from a different location. Nobody could ever steal your private keys without being physically at the computer... So, definitely not how Craptsy designed their system...
Craptsy security protocols (haha) failed at every possible level... A 5th grader could have designed a more secure system