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Major cryptocurrency deanonymization event is imminent by ontofractal

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· @ontofractal ·
$211.48
Major cryptocurrency deanonymization event is imminent
<center>https://cdn-images-1.medium.com/max/1600/1*NZaNH0SFe67HtTxKrPXkAg.png</center>

Cryptocurrency community is all but ignoring an existential risk that may radically change the whole cryptocoin ecosystem. Read on to learn more. 

There were at least 4 hacks of major cryptocurrency exchanges in the last 6 months. Every time exchanges were hacked, tokens were stolen. There are suggestions, not entirely without merit, that some "hacks" were done by the owners of the exchanges. 

* [Coincheck](http://fortune.com/2018/01/31/coincheck-hack-how/) lost nearly $500 million in January 2018

* [Youbit](https://www.bloomberg.com/news/articles/2017-12-19/south-korean-crypto-exchange-files-for-bankruptcy-after-hack)	lost about 17 percent of total assets in December 2017

* [Bithumb](https://thehackernews.com/2017/07/bitcoin-ethereum-cryptocurrency-exchange.html) lost more than $1 Million in June 2017

* [BitGrail](https://techcrunch.com/2018/02/12/bitgrail-hack-nano/) lost $170 million in February 2018

A reasonable assumption is that personal user data at exchanges is protected at most as strongly as private keys, but probably much weaker.

It is only logical to conclude that in most cases where hackers got access to private cryptocurrency keys, they also got access to private user data.

It is also quite probable that there were a number hacks that weren't made public where hackers were not able to penetrate  subsystems managing private keys but got access to private data.

See where I'm going?

At some point, database of one the exchanges containing credentials, personally identifiable information, deposit addresses, balances, withdrawal addresses and individual transactions will be leaked and becomes publicly available.

This should not be surprising to anyone. The security track record of most tech companies is abysmal. The following megacorps had their user databases leaked: Adobe, Yahoo, Linkedin, Dropbox, Tumblr, Badoo, Rambler and many others. That we know of.

Learn more about huge number of private user data leaks at [haveibeenpwned.com](https://haveibeenpwned.com/PwnedWebsites )

Let me put in the simplest terms: **it is very probable that your privacy WILL be compromised.**

In fact I think that nation-state sponsored hacking groups were already able to get access (probably real time) to databases of at least several major exchanges. 

The leak of personally identifiable data will be aggravated by [chain analysis](https://themerkle.com/bitfury-group-de-anonymizes-over-15-of-the-bitcoin-network-with-new-blockchain-analysis-tool/) and [correlation techniques](https://arxiv.org/pdf/1801.07501.pdf)[pdf]. 

The fact that this threat vector is not being heavily discussed either by core teams of most cryptocurrencies nor general cryptocurrency communities is quite perplexing.

A non-exhaustive list of consequences

* Fungibility of major cryptocoins is significantly reduced

* Non-private cryptocurrencies stop being considered as anonymous/pseudonymous

* Usage and prices of cryptocurrencies (Monero, Zcash) that have strong privacy protections soars

* DEXes usage and popularity surges

* Centralized exchanges usage drops

* Some cryptocurrency whales become vulnerable

* Major press coverage ( comparable with Panama leaks) of persons of public interest found in the leaked databases 

Be prepared and improve your operations security accordingly.
👍  , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , and 52 others
👎  
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vote details (117)
@akilie1029 ·
$0.23
It is indeed a big risk seeing those news about exchanges being hacked and millions are being taken and I also feel the same way that personal information might have been taken to but I also have a feeling that the people behind these hacks might be a group linked to the owner of these exchanges also. You're dealing with huge amount of money and for sure your priority should be its security so for me that doesn't make sense and will only lead to one conclusion though nothing was proven yet that it might have been an inside job.
👍  , , , , , , , ,
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vote details (9)
@aksdwi ·
re-ontofractal-major-cryptocurrency-deanonymization-event-is-imminent-20180214t143018553z
This post has received a 9.32% upvote from @aksdwi thanks to: @ontofractal.
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@albertogm ·
Well, this is a great post, but setting off all the paranoia alerts. 
https://media1.tenor.com/images/7296ccacc800ad6e332e9ffbca4ad958/tenor.gif
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@allaz ·
re-ontofractal-major-cryptocurrency-deanonymization-event-is-imminent-20180214t145512122z
You got a 14.50% upvote from @allaz courtesy of @ontofractal!
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@andreina89 ·
Very good information, very interesting friend, good graphics, thanks for sharing, if you can support me on my blog with a vote, greetings
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@ascension ·
$0.02
Really hoping this brings the real silent coins- Monero etc- to the forefront. Feel like they've somewhat undervalued at the moment.
👍  
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@bearwards ·
re-ontofractal-major-cryptocurrency-deanonymization-event-is-imminent-20180214t145300494z
You got a 35.71% upvote from @bearwards courtesy of @ontofractal!
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@bid4joy ·
re-ontofractal-major-cryptocurrency-deanonymization-event-is-imminent-20180214t142904807z
You got a 22.41% upvote from @bid4joy courtesy of @ontofractal!
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@bitgeek ·
comment
Congratulations @ontofractal, this post is the  most rewarded post (based on pending payouts) in the last 12 hours written by a User account holder (accounts that hold between 0.1 and 1.0 Mega Vests). The total number of posts by User account holders during this period was 3447 and the total pending payments to posts in this category was $10322.11. To see the full list of highest paid posts across all accounts categories, [click here](www.steemit.com/steemit/@bitgeek/payout-stats-report-for-14th-february-2018--part-i). 

If you do not wish to receive these messages in future, please reply stop to this comment.
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@carlosblue27k ·
Buen post amigo.
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@crypto-gamester ·
$0.77
Decentralized exchanges are going to become more and more popular!
👍  , , , , , ,
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@everythink ·
$1.34
Yep, and so far my favourite Decentralized exchange is BitShares DEX.
👍  , ,
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vote details (3)
@sousanick94 ·
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@thecastle ·
How tough is it to use a decentralized exchange?
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@ontofractal ·
That depends. Some DEXes have okayish user experience, others, like EtherDelta, can be quite punishing.
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@cryptobroye ·
Interesting article! Checkout @cryptobroye for more bitcoin info and analysis. Im sure there's a lot we can learn from each other!
👍  
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vote details (1)
@cryptoscout ·
Everything in life has risk, and if you are not a risk taker then both #success and #freedom are things you will never have! Thats why you dont put all your gold in one safe, spread it arround, buy property, start a business keep on creating additional income opportunities that reward you for having them. Because I Love #cryptocurrency I'll use steem and neo as great examples, have a secure trading account and semi secure trading account. Even Banks are not safe anymore! Just make money and enjoy it Because nothing is forever...
👍  
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@dahlsom ·
$0.11
Still feel kind of cool if you got in early... ice hasn't even thawed out yet lol
👍  
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@dahlsom ·
$0.10
If half of you is on fire and the other half is in ice.... your a perfect temperature on average ;p
👍  
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@davebrewer ·
Nice logical assessment of a potential future, that  we could easily see play out
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@drkent ·
Very interesting points @ontofractal. Thanks for sharing! I’m just learning about crypto, and this is really great to counterbalance what I’ve been reading. Cheers!
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@firedream ·
![](https://steemitimages.com/DQmfJxHKDwrkxPNj3pAeBKKNziAka5QVQpT5TkbSx54Dg4p/image.png)

We are The Resistance!

You are innocently downvoted by @grumpycat on your fresh post.
We are resisting this.
Check this link,spread the word and join us if you would agree.

https://steemit.com/we-resist/@firedream/resistance-started

Discord : https://discord.gg/qMWCbWR

FD
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@glennrf ·
Great post! If you want to keep track of BTC holdings and all other holdings and crypto news check out the easiest to use crypto portfolio tracker - https://hubwallet.io
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@grumpycat ·
$48.48
https://steemitimages.com/DQmP6XyEEaeWziX1HVhzBqPg1d52Pczu3Y7MgJCMyNYMxkx/image.png

**Between now and 6.5 days you will receive a @GrumpyCat flag** because you or someone else sent money to buy votes from an irresponsible non-GrumpyCompliant service.

@sneaky-ninja @pushup and @aksdwi are acting irresponsibly by selling votes to people on their post in the last hours before payout. = 99.99% abuse rate.

Sending money to these bots is also financially supporting for-profit spammers.

To know what voting bot to use, refer to https://steembottracker.com/ and use those that have 3.5 day or less in the "Max Age" column.
### [Learn more ...](https://steemit.com/abuse/@grumpycat/non-gumpycompliant-vote-sellers-are-now-to-be-used-exclusively-to-profit-from-the-reward-pool)
👍  ,
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vote details (2)
@hawaiialoha ·
Mahalos for the insightful article. The amount of major hacks in crypto is important in the stability of the platform, and people's confidence in it. While the money stolen is high, the number of compromised accounts pales in comparison to the online, and retail, hacks (ie Target, Equifax, ...). Thus the problem becomes, what do we do when all out PII is out on the Net? Does the world become like the movie The Circle, where nothing is private.
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@intrepidwiz ·
Invest in Dogecoin today. Lol
![Doge.jpg](https://steemitimages.com/DQmR75sv4LWVFatuCmRh6bg39wbcjCpqeXzdkWjJVJuRLmR/Doge.jpg)
👍  
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vote details (1)
@cryptoscout ·
[Doge to the Moon on Dmania](https://dmania.lol/post/cryptoscout/dogecoin-to-the-moon-zg1hbmlh-nlhcv). I baught at 55 sat and still holding...
👍  
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vote details (1)
@jeckt84 ·
I think Equifax beat them to the punch
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@jerrybanfield ·
re-ontofractal-major-cryptocurrency-deanonymization-event-is-imminent-20180214t151856551z
Thank you ontofractal for making a transfer to me for an upvote of 12.53% on this post! 

Half of your bid goes to @budgets which [funds growth projects for Steem](https://steemit.com/budget/@jerrybanfield/introducing-steem-budget-proposals) like [our top 25 posts on Steem](https://steemit.com/budget/@jerrybanfield/the-top-25-steem-posts)!

The other half [helps holders of Steem power earn about 60% APR](https://steemit.com/budget/@jerrybanfield/new-automatic-daily-payouts-of-60-apr-for-steem-power-delegations) on a delegation to me!

For help, will you please visit [https://jerrybanfield.com/contact/](https://jerrybanfield.com/contact/) because I check my discord server daily?  

To learn more about Steem, will you please use [http://steem.guide/](http://steem.guide) because this URL forwards to my most recently updated complete Steem tutorial?
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@master-set ·
$2.12
True
That's why I:
1) Using only Decentralized EXchanges with 0 personal data given
2) Considering all my nonprivate crypto assets - compromised already

The privacy is a must for every crypto witch aimed to be digital cash.

Whats your favorite privatecoin @ontofractal ?
👍  
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vote details (1)
@nado.bot ·
re-ontofractal-major-cryptocurrency-deanonymization-event-is-imminent-20180214t142640150z
You got a 28.33% upvote from @nado.bot courtesy of @ontofractal!

Send at least 0.1 SBD to participate in bid and get upvote of 0%-100% with full voting power.

![](https://steemitimages.com/DQmQE5eufDLSWP2pxAZtk8KaTQd6TEPirBbs3p5V9wkBZLc/tornado_1_1.gif)
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@nokodemion ·
$1.58
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vote details (47)
@pihasher ·
Exchanges are definitely the weak link in privacy. Great write up.
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@postpromoter ·
re-ontofractal-major-cryptocurrency-deanonymization-event-is-imminent-20180214t154540991z
You got a 11.37% upvote from @postpromoter courtesy of @ontofractal!

Want to promote your posts too? Check out the [Steem Bot Tracker website](https://steembottracker.com) for more info. If you would like to support the development of @postpromoter and the bot tracker please [vote for @yabapmatt for witness!](https://v2.steemconnect.com/sign/account-witness-vote?witness=yabapmatt&approve=1)
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@pushup ·
re-ontofractal-major-cryptocurrency-deanonymization-event-is-imminent-20180214t151355373z
25.61% @pushup from @ontofractal
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@rebeccamqamelo ·
There are a number of glaring issues that the crypto community is choosing to ignore. I recently wrote an article on the issue of crypto in Africa. Look past the illusion: https://steemit.com/blockchain/@rebeccamqamelo/the-messianic-symbol-gets-real-blockchain-in-africa
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@renegadereptar ·
$0.41
What you aren't taking into account is that none of the major exchanges tha got hacked had major KYC (know your customer) standards. As such it is very unlikely that any of them had a sizeable amount of legitimate personal data, so even if you are right, its little to be scared about. Now if this sort of thing happened to Coinbase or Bittrex or another major exchange that keeps up with KYC standards, then we will have something to worry about.
👍  , ,
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vote details (3)
@restue ·
gooddddd
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@rudeassray ·
I stick with Poloniex, and it has been good to me
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@sagewords ·
Anyone online for any real length of time will have to face hacking. Even in crypto, it's just par for the course. Maybe this will change in the future.
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@shortsegments ·
Thank you for the thoughtful piece about complacency and I will study this issue to see how I can personally contribute education and motivation to people to protect this new platform.
properties (22)
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@sneaky-ninja ·
re-ontofractal-major-cryptocurrency-deanonymization-event-is-imminent-20180214t152223272z
Sneaky Ninja Attack! You have been defended with a 21.21% vote... I was summoned by @ontofractal! I have done their bidding and now I will vanish...Whoosh
properties (22)
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@spiritualmatters · (edited)
I 'use' OpenLegdger; but, unfortunately, have not been able to access the exchange due to continuing maintenance issues. 

That said, I really like the platform's layout, and expect once it gets its 'sea legs' should be one of the better exchanges for trading. I hope, too, that there will be an increase in trading pairs once it is able to stand up to the weight of new users.

Peace.
properties (22)
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@sutancimxcl ·
Wow, very good information
Do you give me leason about this
properties (22)
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@zulfikrizal ·
Very good picture and your story
properties (22)
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