Quote from: DaveF on November 28, 2022, 11:43:19 AM

So more then likely some big institution pulled their coins out, probably to calm their investors. Proving that they have it and it is safe. Not a big deal, and between the article and what we have discussed here spent more time discussing a non event then it's worth.

If, picking on a random brokerage, E*Trade pulled a bunch of cash out of one bank to bring it in house it would not even make the press.
If a investment fund switched some back end stuff around as to who held their investments if they did not do it in house it might make a line or 2 of text in places like Bloomberg.

-Dave

It's only making news because it's cryptocurrencies. If bitcoin wasn't moved it'd be a regular transaction in the business world. It wouldn't make headlines. Cryptocurrencies shouldn't be sitting in exchanges.

Quote from: o_e_l_e_o on November 28, 2022, 12:41:39 PM

Quote from: Z-tight on November 28, 2022, 12:30:40 PM

there was a topic i read here the other day about self custody being more difficult to achieve than third party custody

Isn't it amazing that centralized exchanges have managed to convince people that writing down 12 words is outside of their capacity, and they need to give all their coins to complete strangers instead.

I'm not amazed they've convinced people to trust them because that's how they make money. These people should learn about about alternatives to exchanges. They require educating because it's easy to use Electrum.

Quote from: o_e_l_e_o on November 28, 2022, 12:41:39 PM

Quote from: Z-tight on November 28, 2022, 12:30:40 PM

that is the idea that a lot of people have and so they sleep well because they think the third party service is their safest option in keeping their BTC.

Pretty much every centralized exchange has lost coins in a hack at some point, so such an opinion is just provably wrong. Or take a look at FTX as a shining example - one of the biggest crypto exchange in existence, and court documents show that they were storing private keys on an unsecured group email account. This is the kind of "security" you get with centralized exchanges.

If exchanges haven't been hacked they've been attacked with attempted hacks. If you're trusting exchanges you don't hold private keys, you're relying on their security. Their failures will lead to hacks.

Exchange owners storing private keys in company emails isn't appropriate, it's what FTX did, other exchanges are professional with stronger security.