Blockchain networks are virtually unhackable, but crypto exchanges not so much. In 2016, hackers stole 4.5 billion in BTC from the Bitfinex exchange - in 2022 they were busted trying to launder the money. Let's take a look at security on crypto exchanges. 

#crypto #hacking #TheCodeReport

🔗 Resources

DOJ Documents https://www.justice.gov/opa/pr/two-arrested-alleged-conspiracy-launder-45-billion-stolen-cryptocurrency
Bitfinex hack https://en.wikipedia.org/wiki/2016_Bitfinex_hack
Blockchain in 100 Seconds https://youtu.be/qF7dkrce-mQ

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🎨 My Editor Settings

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🔖 Topics Covered

- 2016 Bitfinex hack
- Arrest of Ilya Lichtenstein and Heather Morgan
- How does bitcoin get hacked
- Are crypto exchanges safe?
- Cold wallet vs Hot wallet
- Multi-signature wallets
- RazzleKhan rapper
2024-02-04T13:42:38.557Z
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deprecated
It is February 10th, 2022, and you're watching the code report, the most trusted name in tech news.
The neat thing about cryptocurrency is that it's trustless, and that means when you put your hard earned paycheck from Wendy's into a crypto exchange and somebody steals it, you'll probably never get that money back.
But 10uously, it's not an anonymous safe haven for criminals either.
Your classic lose lose.
Back in 2016, somebody stole a 120 some Bitcoin's worth $71,000,000 from the Bitfinex exchange by accessing the private keys of users.
Today, those Bitcoins are worth $4,500,000,000 making the hackers some of the richest people on the planet, but there's just one problem.
Bitcoin is a giant public ledger, and you can't move your money around without the feds watching your every move.
And last week, they recovered 94,000 of the stolen Bitcoins, and arrested the husband and wife duo of Ilya Lichtenstein and Heather Morgan.
Ladies and gentlemen, We got him.
The saddest part of the story is that Heather was an up and coming rapper.
This song is for the entrepreneurs and hackers.
All at Russell Collins.
The Versace better win.
Come real far, but don't know where I'm headed.
Mother At least now, she does know where Tizhetit, the couple is facing up to 20 years in prison for attempting to launder the stolen Bitcoin.
It's not clear if they're the ones that actually performed the hack back in 2016 though, documents from the Department of Justice break down how they would move the currency with a diverse array of transactions, like purchasing altcoins and NFTs is and then breaking everything down into thousands of smaller transactions where the funds would eventually flow into a business that could fund Heather's music videos.
They get an a for effort, but Bitcoin's not like a gold bar that you can Meltdown and Sell on the black market.
On the bright side though, many of my favorite rappers have done time in prison.
Another big question here is will the original owners be able to recover their funds, Bitfinex already attempted to make customers whole by crediting them with a different token when the hack occurred.
They are working with the Department of this, but it will likely be a very long and complicated process before anyone gets their Bitcoin back, if it happens at all.
But what about your Bitcoin?
Is it safe in an exchange right now?
Well, the blockchain network itself is virtually unhackable with current technology.
Crypto exchanges on the other hand are very much hackable.
The thing about cryptocurrency Vee is that when someone obtains your private key, they have access to all of your money and can send it wherever they want.
There's no central authority to detect or stop fraudulent transactions, but they do implement other measures to keep your token safe.
1 is multi signature wallets that require multiple private keys to send a transaction.
The other thing they do is try to keep as much crypto in cold storage as possible, there are 2 types of crypto wallets, a hot wallet, which is always connected to the Internet and ready to send transactions and the other is a cold wallet, which is offline and generally used for long term storage of your money.
A cold wallet can only be hacked if you have physical possession of the device.
Exchanges like Coinbase keep 90% of your crypto in cold storage, and because they're a big centralized authority, if they ever got hacked, they'd have enough money to pay everybody off, there are stories of crypto exchanges being hacked all the time, but it is pretty safe for most people today.
But if you're really attached to your tokens, the safest thing to do is get them out of an exchange into your own cold storage wallet, then move out of the city and learn how to grow your own food, dig a bunker on your property, and store the wallet there alongside your gold and ammo.
This has been the Code Report.
Thanks for watching, and I will see you in the next one.

Speaker 0: It is February 10th, 2022, and you're watching the code report, the most trusted name in tech news. The neat thing about cryptocurrency is that it's trustless, and that means when you put your hard earned paycheck from Wendy's into a crypto exchange and somebody steals it, you'll probably never get that money back. But 10uously, it's not an anonymous safe haven for criminals either. Your classic lose lose. Back in 2016, somebody stole a 120 some Bitcoin's worth $71,000,000 from the Bitfinex exchange by accessing the private keys of users.

Today, those Bitcoins are worth $4,500,000,000 making the hackers some of the richest people on the planet, but there's just one problem. Bitcoin is a giant public ledger, and you can't move your money around without the feds watching your every move. And last week, they recovered 94,000 of the stolen Bitcoins, and arrested the husband and wife duo of Ilya Lichtenstein and Heather Morgan. Ladies and gentlemen, We got him. The saddest part of the story is that Heather was an up and coming rapper.

This song is for the entrepreneurs and hackers. All at Russell Collins. The Versace better win. Come real far, but don't know where I'm headed. Mother At least now, she does know where Tizhetit, the couple is facing up to 20 years in prison for attempting to launder the stolen Bitcoin.

It's not clear if they're the ones that actually performed the hack back in 2016 though, documents from the Department of Justice break down how they would move the currency with a diverse array of transactions, like purchasing altcoins and NFTs is and then breaking everything down into thousands of smaller transactions where the funds would eventually flow into a business that could fund Heather's music videos. They get an a for effort, but Bitcoin's not like a gold bar that you can Meltdown and Sell on the black market. On the bright side though, many of my favorite rappers have done time in prison. Another big question here is will the original owners be able to recover their funds, Bitfinex already attempted to make customers whole by crediting them with a different token when the hack occurred. They are working with the Department of this, but it will likely be a very long and complicated process before anyone gets their Bitcoin back, if it happens at all.

But what about your Bitcoin? Is it safe in an exchange right now? Well, the blockchain network itself is virtually unhackable with current technology. Crypto exchanges on the other hand are very much hackable. The thing about cryptocurrency Vee is that when someone obtains your private key, they have access to all of your money and can send it wherever they want.

There's no central authority to detect or stop fraudulent transactions, but they do implement other measures to keep your token safe. 1 is multi signature wallets that require multiple private keys to send a transaction. The other thing they do is try to keep as much crypto in cold storage as possible, there are 2 types of crypto wallets, a hot wallet, which is always connected to the Internet and ready to send transactions and the other is a cold wallet, which is offline and generally used for long term storage of your money. A cold wallet can only be hacked if you have physical possession of the device. Exchanges like Coinbase keep 90% of your crypto in cold storage, and because they're a big centralized authority, if they ever got hacked, they'd have enough money to pay everybody off, there are stories of crypto exchanges being hacked all the time, but it is pretty safe for most people today.

But if you're really attached to your tokens, the safest thing to do is get them out of an exchange into your own cold storage wallet, then move out of the city and learn how to grow your own food, dig a bunker on your property, and store the wallet there alongside your gold and ammo. This has been the Code Report. Thanks for watching, and I will see you in the next one.
It is February 10th, 2022, and you're watching the code report, the most trusted name in tech news. The neat thing about cryptocurrency is that it's trustless, and that means when you put your hard earned paycheck from Wendy's into a crypto exchange and somebody steals it, you'll probably never get that money back. But 10uously, it's not an anonymous safe haven for criminals either. Your classic lose lose. Back in 2016, somebody stole a 120 some Bitcoin's worth $71,000,000 from the Bitfinex exchange by accessing the private keys of users. Today, those Bitcoins are worth $4,500,000,000 making the hackers some of the richest people on the planet, but there's just one problem. Bitcoin is a giant public ledger, and you can't move your money around without the feds watching your every move. And last week, they recovered 94,000 of the stolen Bitcoins, and arrested the husband and wife duo of Ilya Lichtenstein and Heather Morgan.
cryptocurrency
banking
Ladies and gentlemen, We got him. The saddest part of the story is that Heather was an up and coming rapper. This song is for the entrepreneurs and hackers. All at Russell Collins.
The Versace better win. Come real far, but don't know where I'm headed. Mother At least now, she does know where Tizhetit, the couple is facing up to 20 years in prison for attempting to launder the stolen Bitcoin. It's not clear if they're the ones that actually performed the hack back in 2016 though, documents from the Department of Justice break down how they would move the currency with a diverse array of transactions, like purchasing altcoins and NFTs is and then breaking everything down into thousands of smaller transactions where the funds would eventually flow into a business that could fund Heather's music videos. They get an a for effort, but Bitcoin's not like a gold bar that you can Meltdown and Sell on the black market. On the bright side though, many of my favorite rappers have done time in prison. Another big question here is will the original owners be able to recover their funds, Bitfinex already attempted to make customers whole by crediting them with a different token when the hack occurred. They are working with the Department of this, but it will likely be a very long and complicated process before anyone gets their Bitcoin back, if it happens at all. But what about your Bitcoin? Is it safe in an exchange right now? Well, the blockchain network itself is virtually unhackable with current technology. Crypto exchanges on the other hand are very much hackable. The thing about cryptocurrency Vee is that when someone obtains your private key, they have access to all of your money and can send it wherever they want. There's no central authority to detect or stop fraudulent transactions, but they do implement other measures to keep your token safe. 1 is multi signature wallets that require multiple private keys to send a transaction. The other thing they do is try to keep as much crypto in cold storage as possible, there are 2 types of crypto wallets, a hot wallet, which is always connected to the Internet and ready to send transactions and the other is a cold wallet, which is offline and generally used for long term storage of your money. A cold wallet can only be hacked if you have physical possession of the device. Exchanges like Coinbase keep 90% of your crypto in cold storage, and because they're a big centralized authority, if they ever got hacked, they'd have enough money to pay everybody off, there are stories of crypto exchanges being hacked all the time, but it is pretty safe for most people today. But if you're really attached to your tokens, the safest thing to do is get them out of an exchange into your own cold storage wallet, then move out of the city and learn how to grow your own food, dig a bunker on your property, and store the wallet there alongside your gold and ammo.
cryptocurrency
prison
security
candy
This has been the Code Report. Thanks for watching, and I will see you in the next one.
It is February 10th, 2022, and you're watching the code report, the most trusted name in tech news. The neat thing about cryptocurrency is that it's trustless, and that means when you put your hard earned paycheck from Wendy's into a crypto exchange and somebody steals it, you'll probably never get that money back. But 10uously, it's not an anonymous safe haven for criminals either. Your classic lose lose. Back in 2016, somebody stole a 120 some Bitcoin's worth $71,000,000 from the Bitfinex exchange by accessing the private keys of users. Today, those Bitcoins are worth $4,500,000,000 making the hackers some of the richest people on the planet, but there's just one problem. Bitcoin is a giant public ledger, and you can't move your money around without the feds watching your every move. And last week, they recovered 94,000 of the stolen Bitcoins, and arrested the husband and wife duo of Ilya Lichtenstein and Heather Morgan. Ladies and gentlemen, We got him. The saddest part of the story is that Heather was an up and coming rapper. This song is for the entrepreneurs and hackers. All at Russell Collins. The Versace better win. Come real far, but don't know where I'm headed. Mother At least now, she does know where Tizhetit, the couple is facing up to 20 years in prison for attempting to launder the stolen Bitcoin. It's not clear if they're the ones that actually performed the hack back in 2016 though, documents from the Department of Justice break down how they would move the currency with a diverse array of transactions, like purchasing altcoins and NFTs is and then breaking everything down into thousands of smaller transactions where the funds would eventually flow into a business that could fund Heather's music videos. They get an a for effort, but Bitcoin's not like a gold bar that you can Meltdown and Sell on the black market. On the bright side though, many of my favorite rappers have done time in prison. Another big question here is will the original owners be able to recover their funds, Bitfinex already attempted to make customers whole by crediting them with a different token when the hack occurred. They are working with the Department of this, but it will likely be a very long and complicated process before anyone gets their Bitcoin back, if it happens at all. But what about your Bitcoin? Is it safe in an exchange right now? Well, the blockchain network itself is virtually unhackable with current technology. Crypto exchanges on the other hand are very much hackable. The thing about cryptocurrency Vee is that when someone obtains your private key, they have access to all of your money and can send it wherever they want. There's no central authority to detect or stop fraudulent transactions, but they do implement other measures to keep your token safe. 1 is multi signature wallets that require multiple private keys to send a transaction. The other thing they do is try to keep as much crypto in cold storage as possible, there are 2 types of crypto wallets, a hot wallet, which is always connected to the Internet and ready to send transactions and the other is a cold wallet, which is offline and generally used for long term storage of your money. A cold wallet can only be hacked if you have physical possession of the device. Exchanges like Coinbase keep 90% of your crypto in cold storage, and because they're a big centralized authority, if they ever got hacked, they'd have enough money to pay everybody off, there are stories of crypto exchanges being hacked all the time, but it is pretty safe for most people today. But if you're really attached to your tokens, the safest thing to do is get them out of an exchange into your own cold storage wallet, then move out of the city and learn how to grow your own food, dig a bunker on your property, and store the wallet there alongside your gold and ammo. This has been the Code Report. Thanks for watching, and I will see you in the next one.
It
it
is
is
February
february
10th,
10th
2022,
2022
and
and
you're
you're
watching
watching
the
the
code
code
report,
report
the
the
most
most
trusted
trusted
name
name
in
in
tech
tech
news.
news
The
the
neat
neat
thing
thing
about
about
cryptocurrency
cryptocurrency
is
is
that
that
it's
it's
trustless,
trustless
and
and
that
that
means
means
when
when
you
you
put
put
your
your
hard
hard
earned
earned
paycheck
paycheck
from
from
Wendy's
wendy's
into
into
a
a
crypto
crypto
exchange
exchange
and
and
somebody
somebody
steals
steals
it,
it
you'll
you'll
probably
probably
never
never
get
get
that
that
money
money
back.
back
But
but
10uously,
10uously
it's
it's
not
not
an
an
anonymous
anonymous
safe
safe
haven
haven
for
for
criminals
criminals
either.
either
Your
your
classic
classic
lose
lose
lose.
lose
Back
back
in
in
2016,
2016
somebody
somebody
stole
stole
a
a
120
120
some
some
Bitcoin's
bitcoin's
worth
worth
$71,000,000
$71,000,000
from
from
the
the
Bitfinex
bitfinex
exchange
exchange
by
by
accessing
accessing
the
the
private
private
keys
keys
of
of
users.
users
Today,
today
those
those
Bitcoins
bitcoins
are
are
worth
worth
$4,500,000,000
$4,500,000,000
making
making
the
the
hackers
hackers
some
some
of
of
the
the
richest
richest
people
people
on
on
the
the
planet,
planet
but
but
there's
there's
just
just
one
one
problem.
problem
Bitcoin
bitcoin
is
is
a
a
giant
giant
public
public
ledger,
ledger
and
and
you
you
can't
can't
move
move
your
your
money
money
around
around
without
without
the
the
feds
feds
watching
watching
your
your
every
every
move.
move
And
and
last
last
week,
week
they
they
recovered
recovered
94,000
94,000
of
of
the
the
stolen
stolen
Bitcoins,
bitcoins
and
and
arrested
arrested
the
the
husband
husband
and
and
wife
wife
duo
duo
of
of
Ilya
ilya
Lichtenstein
lichtenstein
and
and
Heather
heather
Morgan.
morgan
Ladies
ladies
and
and
gentlemen,
gentlemen
We
we
got
got
him.
him
The
the
saddest
saddest
part
part
of
of
the
the
story
story
is
is
that
that
Heather
heather
was
was
an
an
up
up
and
and
coming
coming
rapper.
rapper
This
this
song
song
is
is
for
for
the
the
entrepreneurs
entrepreneurs
and
and
hackers.
hackers
All
all
at
at
Russell
russell
Collins.
collins
The
the
Versace
versace
better
better
win.
win
Come
come
real
real
far,
far
but
but
don't
don't
know
know
where
where
I'm
i'm
headed.
headed
Mother
mother
At
at
least
least
now,
now
she
she
does
does
know
know
where
where
Tizhetit,
tizhetit
the
the
couple
couple
is
is
facing
facing
up
up
to
to
20
20
years
years
in
in
prison
prison
for
for
attempting
attempting
to
to
launder
launder
the
the
stolen
stolen
Bitcoin.
bitcoin
It's
it's
not
not
clear
clear
if
if
they're
they're
the
the
ones
ones
that
that
actually
actually
performed
performed
the
the
hack
hack
back
back
in
in
2016
2016
though,
though
documents
documents
from
from
the
the
Department
department
of
of
Justice
justice
break
break
down
down
how
how
they
they
would
would
move
move
the
the
currency
currency
with
with
a
a
diverse
diverse
array
array
of
of
transactions,
transactions
like
like
purchasing
purchasing
altcoins
altcoins
and
and
NFTs
nfts
is
is
and
and
then
then
breaking
breaking
everything
everything
down
down
into
into
thousands
thousands
of
of
smaller
smaller
transactions
transactions
where
where
the
the
funds
funds
would
would
eventually
eventually
flow
flow
into
into
a
a
business
business
that
that
could
could
fund
fund
Heather's
heather's
music
music
videos.
videos
They
they
get
get
an
an
a
a
for
for
effort,
effort
but
but
Bitcoin's
bitcoin's
not
not
like
like
a
a
gold
gold
bar
bar
that
that
you
you
can
can
Meltdown
meltdown
and
and
Sell
sell
on
on
the
the
black
black
market.
market
On
on
the
the
bright
bright
side
side
though,
though
many
many
of
of
my
my
favorite
favorite
rappers
rappers
have
have
done
done
time
time
in
in
prison.
prison
Another
another
big
big
question
question
here
here
is
is
will
will
the
the
original
original
owners
owners
be
be
able
able
to
to
recover
recover
their
their
funds,
funds
Bitfinex
bitfinex
already
already
attempted
attempted
to
to
make
make
customers
customers
whole
whole
by
by
crediting
crediting
them
them
with
with
a
a
different
different
token
token
when
when
the
the
hack
hack
occurred.
occurred
They
they
are
are
working
working
with
with
the
the
Department
department
of
of
this,
this
but
but
it
it
will
will
likely
likely
be
be
a
a
very
very
long
long
and
and
complicated
complicated
process
process
before
before
anyone
anyone
gets
gets
their
their
Bitcoin
bitcoin
back,
back
if
if
it
it
happens
happens
at
at
all.
all
But
but
what
what
about
about
your
your
Bitcoin?
bitcoin
Is
is
it
it
safe
safe
in
in
an
an
exchange
exchange
right
right
now?
now
Well,
well
the
the
blockchain
blockchain
network
network
itself
itself
is
is
virtually
virtually
unhackable
unhackable
with
with
current
current
technology.
technology
Crypto
crypto
exchanges
exchanges
on
on
the
the
other
other
hand
hand
are
are
very
very
much
much
hackable.
hackable
The
the
thing
thing
about
about
cryptocurrency
cryptocurrency
Vee
vee
is
is
that
that
when
when
someone
someone
obtains
obtains
your
your
private
private
key,
key
they
they
have
have
access
access
to
to
all
all
of
of
your
your
money
money
and
and
can
can
send
send
it
it
wherever
wherever
they
they
want.
want
There's
there's
no
no
central
central
authority
authority
to
to
detect
detect
or
or
stop
stop
fraudulent
fraudulent
transactions,
transactions
but
but
they
they
do
do
implement
implement
other
other
measures
measures
to
to
keep
keep
your
your
token
token
safe.
safe
1
1
is
is
multi
multi
signature
signature
wallets
wallets
that
that
require
require
multiple
multiple
private
private
keys
keys
to
to
send
send
a
a
transaction.
transaction
The
the
other
other
thing
thing
they
they
do
do
is
is
try
try
to
to
keep
keep
as
as
much
much
crypto
crypto
in
in
cold
cold
storage
storage
as
as
possible,
possible
there
there
are
are
2
2
types
types
of
of
crypto
crypto
wallets,
wallets
a
a
hot
hot
wallet,
wallet
which
which
is
is
always
always
connected
connected
to
to
the
the
Internet
internet
and
and
ready
ready
to
to
send
send
transactions
transactions
and
and
the
the
other
other
is
is
a
a
cold
cold
wallet,
wallet
which
which
is
is
offline
offline
and
and
generally
generally
used
used
for
for
long
long
term
term
storage
storage
of
of
your
your
money.
money
A
a
cold
cold
wallet
wallet
can
can
only
only
be
be
hacked
hacked
if
if
you
you
have
have
physical
physical
possession
possession
of
of
the
the
device.
device
Exchanges
exchanges
like
like
Coinbase
coinbase
keep
keep
90%
90%
of
of
your
your
crypto
crypto
in
in
cold
cold
storage,
storage
and
and
because
because
they're
they're
a
a
big
big
centralized
centralized
authority,
authority
if
if
they
they
ever
ever
got
got
hacked,
hacked
they'd
they'd
have
have
enough
enough
money
money
to
to
pay
pay
everybody
everybody
off,
off
there
there
are
are
stories
stories
of
of
crypto
crypto
exchanges
exchanges
being
being
hacked
hacked
all
all
the
the
time,
time
but
but
it
it
is
is
pretty
pretty
safe
safe
for
for
most
most
people
people
today.
today
But
but
if
if
you're
you're
really
really
attached
attached
to
to
your
your
tokens,
tokens
the
the
safest
safest
thing
thing
to
to
do
do
is
is
get
get
them
them
out
out
of
of
an
an
exchange
exchange
into
into
your
your
own
own
cold
cold
storage
storage
wallet,
wallet
then
then
move
move
out
out
of
of
the
the
city
city
and
and
learn
learn
how
how
to
to
grow
grow
your
your
own
own
food,
food
dig
dig
a
a
bunker
bunker
on
on
your
your
property,
property
and
and
store
store
the
the
wallet
wallet
there
there
alongside
alongside
your
your
gold
gold
and
and
ammo.
ammo
This
this
has
has
been
been
the
the
Code
code
Report.
report
Thanks
thanks
for
for
watching,
watching
and
and
I
i
will
will
see
see
you
you
in
in
the
the
next
next
one.
one
success
The transcript discusses the safety of cryptocurrency, including the challenges of moving it around during a recent hack. The process of recovering funds from stolen Bitcoin is long and complicated, but it is not like a gold bar. The process of keeping blockchain wallets secure is also discussed, including the use of multi-signature wallets and cold storage.
What happens if you hack 4.5 billion BTC? // The Code Report
It is February 10th, 2022, and you're watching the code report, the most trusted name in tech news. The neat thing about cryptocurrency is that it's trustless, and that means when you put your hard earned paycheck from Wendy's into a crypto exchange and somebody steals it, you'll probably never get that money back. But 10uously, it's not an anonymous safe haven for criminals either. Your classic lose lose. Back in 2016, somebody stole a 120 some Bitcoin's worth $71,000,000 from the Bitfinex exchange by accessing the private keys of users. Today, those Bitcoins are worth $4,500,000,000 making the hackers some of the richest people on the planet, but there's just one problem. Bitcoin is a giant public ledger, and you can't move your money around without the feds watching your every move. And last week, they recovered 94,000 of the stolen Bitcoins, and arrested the husband and wife duo of Ilya Lichtenstein and Heather Morgan. Ladies and gentlemen, We got him. The saddest part of the story is that Heather was an up and coming rapper. This song is for the entrepreneurs and hackers. All at Russell Collins. The Versace better win. Come real far, but don't know where I'm headed. Mother At least now, she does know where Tizhetit, the couple is facing up to 20 years in prison for attempting to launder the stolen Bitcoin. It's not clear if they're the ones that actually performed the hack back in 2016 though, documents from the Department of Justice break down how they would move the currency with a diverse array of transactions, like purchasing altcoins and NFTs is and then breaking everything down into thousands of smaller transactions where the funds would eventually flow into a business that could fund Heather's music videos. They get an a for effort, but Bitcoin's not like a gold bar that you can Meltdown and Sell on the black market. On the bright side though, many of my favorite rappers have done time in prison. Another big question here is will the original owners be able to recover their funds, Bitfinex already attempted to make customers whole by crediting them with a different token when the hack occurred. They are working with the Department of this, but it will likely be a very long and complicated process before anyone gets their Bitcoin back, if it happens at all. But what about your Bitcoin? Is it safe in an exchange right now? Well, the blockchain network itself is virtually unhackable with current technology. Crypto exchanges on the other hand are very much hackable. The thing about cryptocurrency Vee is that when someone obtains your private key, they have access to all of your money and can send it wherever they want. There's no central authority to detect or stop fraudulent transactions, but they do implement other measures to keep your token safe. 1 is multi signature wallets that require multiple private keys to send a transaction. The other thing they do is try to keep as much crypto in cold storage as possible, there are 2 types of crypto wallets, a hot wallet, which is always connected to the Internet and ready to send transactions and the other is a cold wallet, which is offline and generally used for long term storage of your money. A cold wallet can only be hacked if you have physical possession of the device. Exchanges like Coinbase keep 90% of your crypto in cold storage, and because they're a big centralized authority, if they ever got hacked, they'd have enough money to pay everybody off, there are stories of crypto exchanges being hacked all the time, but it is pretty safe for most people today. But if you're really attached to your tokens, the safest thing to do is get them out of an exchange into your own cold storage wallet, then move out of the city and learn how to grow your own food, dig a bunker on your property, and store the wallet there alongside your gold and ammo. This has been the Code Report. Thanks for watching, and I will see you in the next one.
The transcript discusses the safety of cryptocurrency, including the challenges of moving it around during a recent hack. The process of recovering funds from stolen Bitcoin is long and complicated, but it is not like a gold bar. The process of keeping blockchain wallets secure is also discussed, including the use of multi-signature wallets and cold storage.

        [INST]
        You are youtuber called Fireship you make engaging high-intensity and entertaining coding tutorials and tech news. 
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        Given the title of the video : What happens if you hack 4.5 billion BTC? // The Code Report 
        and a small summary : The transcript discusses the safety of cryptocurrency, including the challenges of moving it around during a recent hack. The process of recovering funds from stolen Bitcoin is long and complicated, but it is not like a gold bar. The process of keeping blockchain wallets secure is also discussed, including the use of multi-signature wallets and cold storage.
        [/INST]
        
        Generate the video : It is February 10th, 2022, and you're watching the code report, the most trusted name in tech news. The neat thing about cryptocurrency is that it's trustless, and that means when you put your hard earned paycheck from Wendy's into a crypto exchange and somebody steals it, you'll probably never get that money back. But 10uously, it's not an anonymous safe haven for criminals either. Your classic lose lose. Back in 2016, somebody stole a 120 some Bitcoin's worth $71,000,000 from the Bitfinex exchange by accessing the private keys of users. Today, those Bitcoins are worth $4,500,000,000 making the hackers some of the richest people on the planet, but there's just one problem. Bitcoin is a giant public ledger, and you can't move your money around without the feds watching your every move. And last week, they recovered 94,000 of the stolen Bitcoins, and arrested the husband and wife duo of Ilya Lichtenstein and Heather Morgan. Ladies and gentlemen, We got him. The saddest part of the story is that Heather was an up and coming rapper. This song is for the entrepreneurs and hackers. All at Russell Collins. The Versace better win. Come real far, but don't know where I'm headed. Mother At least now, she does know where Tizhetit, the couple is facing up to 20 years in prison for attempting to launder the stolen Bitcoin. It's not clear if they're the ones that actually performed the hack back in 2016 though, documents from the Department of Justice break down how they would move the currency with a diverse array of transactions, like purchasing altcoins and NFTs is and then breaking everything down into thousands of smaller transactions where the funds would eventually flow into a business that could fund Heather's music videos. They get an a for effort, but Bitcoin's not like a gold bar that you can Meltdown and Sell on the black market. On the bright side though, many of my favorite rappers have done time in prison. Another big question here is will the original owners be able to recover their funds, Bitfinex already attempted to make customers whole by crediting them with a different token when the hack occurred. They are working with the Department of this, but it will likely be a very long and complicated process before anyone gets their Bitcoin back, if it happens at all. But what about your Bitcoin? Is it safe in an exchange right now? Well, the blockchain network itself is virtually unhackable with current technology. Crypto exchanges on the other hand are very much hackable. The thing about cryptocurrency Vee is that when someone obtains your private key, they have access to all of your money and can send it wherever they want. There's no central authority to detect or stop fraudulent transactions, but they do implement other measures to keep your token safe. 1 is multi signature wallets that require multiple private keys to send a transaction. The other thing they do is try to keep as much crypto in cold storage as possible, there are 2 types of crypto wallets, a hot wallet, which is always connected to the Internet and ready to send transactions and the other is a cold wallet, which is offline and generally used for long term storage of your money. A cold wallet can only be hacked if you have physical possession of the device. Exchanges like Coinbase keep 90% of your crypto in cold storage, and because they're a big centralized authority, if they ever got hacked, they'd have enough money to pay everybody off, there are stories of crypto exchanges being hacked all the time, but it is pretty safe for most people today. But if you're really attached to your tokens, the safest thing to do is get them out of an exchange into your own cold storage wallet, then move out of the city and learn how to grow your own food, dig a bunker on your property, and store the wallet there alongside your gold and ammo. This has been the Code Report. Thanks for watching, and I will see you in the next one.
        