In the wake of the Bitfinex hack, which resulted in $65 million stolen, Coinbase decided to offer a window into how the company handles security, acknowledging that an inside job poses the biggest security risk.
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Coinbase: Inside Job is the Biggest Threat
The AMA took place in Bitcoin’s embattled original subreddit, r/Bitcoin, where the moderator Theymos has tirelessly censored alt-coin posts in an attempt to keep the source Bitcoin focused. This resulted in cries of “censorship” by the Bitcoin Community. Theymos reached out to the company to ensure the individuals claiming to be Coinbase, in fact were, and apparently confirmed so.
Throughout the AMA, and in stark juxtaposition to Bitfinex practices, Coinbase multiple times highlighted the importance and sophistication of its cold wallet storage. They noted how many Bitcoin users have trouble storing their bitcoin securely.
“[T]rue offline storage can be a pain in the ass from a usability perspective for an individual,” Coinbase representative Philip-coinbase wrote. “We spend a bunch of our time worrying about coin storage and user security to try to make the experience seamless and secure.”
The team spoke candidly, citing the biggest threat facing