GateHub Announcement

[GateHub]

To Our Valued Customers:

We have made an important public announcement. It was published on our blog today, available here: http://blog.gatehub.net/post/165832617292/gatehub-ltd-announcement 

No action is required. We wanted to inform you of this occurrence in order to fulfill our commitment to transparency and customer service.

GateHub team. 

[Malloy]

Very professional announcement...gives me confidence in your future. 

[Hodlezerper]

Hey so, question for the community...

What's the difference between on and off ledger trading?

I can't quite wrap my mind around it.

Edited September 28, 2017 by Hodlezerper

[Mercury]

Just now, Hodlezerper said:

Hey so, question for the community...

What's the difference between in and off ledger trading?

I can't quite wrap my mind around it.

On ledger is directly on the XRP ledger. Off ledger is on a private ledger (IOUs) that may be later, but not necessarily, to the XRP Ledger. Karken for example uses off ledgers.

[Hodlezerper]

Just now, Mercury said:

On ledger is directly on the XRP ledger. Off ledger is on a private ledger (IOUs) that may be later, but not necessarily, to the XRP Ledger. Karken for example uses off ledgers.

Thanks!

So how does one know if the exchange actually has the assets to back up the trades? Or am I not thinking about it correctly?

[Mercury]

1 hour ago, gatehub said:

To Our Valued Customers:

We have made an important public announcement. It was published on our blog today, available here: http://blog.gatehub.net/post/165832617292/gatehub-ltd-announcement 

No action is required. We wanted to inform you of this occurrence in order to fulfill our commitment to transparency and customer service.

GateHub team. 

I agree with @Malloy, this announcement and the decision to absorb the loss by the shareholders keeps my confidence and trust  in Gatehub.

[Mercury]

1 minute ago, Hodlezerper said:

Thanks!

So how does one know if the exchange actually has the assets to back up the trades? Or am I not thinking about it correctly?

Tricky. If an exchange is using XRP it is easy to see on ledger. IOUs are partially based on trust- why we might see a difference between similar issued assets (ie. USD)

[Just_J]

Soooooo ....

On one hand the direct naming of RCL/Ripple .... seems like they want to blame ... 

Yet if you read between the lines - it seems like it was a bad implementation of RCL/Ripple ... and not the fault of Ripple per se ...

If the latter is the actual and the former is simply obfuscation and a mitigation attempt of fully accepting blame by Gatehub ...

Shouldn't there be a second statement made by Gatehub absolving Ripple/RCL/Rippled for the issue and wholeheartedly taking all blame for a bad implementation or design by Gatehub?

[Dennis]

I love the posture of the announcement, and of course that no customers will lose funds, but I'm not sure how I feel about Gatehub going off-ledger...

[Xi195]

Sounds like they are rebuilding GateHub from the ground up. No wonder they've been MIA.

[Guest]

So does this explain why there were threads here about Gatehub customers with locked wallets?   I couldn't understand why that wasn't an instant fix for the dozen(?) or so that seemed affected.

But one person just had their funds returned/freed up yesterday so maybe this is all linked.

[Sukrim]

https://ripple.com/files/GB-2014-06.pdf - The bulletin about tfPartialPayment from 2014...

In case somone else considers running a gateway, make sure to read and understand this one and the others at https://ripple.com/build/gateway-guide/#gateway-bulletins

[kanaas]

Soooooo ....
On one hand the direct naming of RCL/Ripple .... seems like they want to blame ... 
Yet if you read between the lines - it seems like it was a bad implementation of RCL/Ripple ... and not the fault of Ripple per se ...
If the latter is the actual and the former is simply obfuscation and a mitigation attempt of fully accepting blame by Gatehub ...
Shouldn't there be a second statement made by Gatehub absolving Ripple/RCL/Rippled for the issue and wholeheartedly taking all blame for a bad implementation or design by Gatehub?

They say it here:

GateHub discovered that a criminal had exploited a flaw in an auxiliary deposit processing service[/Quote]

[T8493]

Coverage in mainstream media:

https://live.finance.si/39297/Hekerji-GateHubu-ukradli-za-pet-milijonov-dolarjev-kriptokovancev-ripple

 

Google translate:

Quote

 

Hackers exploited the system's disadvantage and GateHub's online trading platform for stealing a $ 5 million cryptowave ripple was recorded in GateHub, which was developed by the Slovenes.

As they explained, the hacker attack occurred in early August, and the disadvantage has already been resolved. Hackers steal a small part of the coins, most of which are stored in a cold storage. Therefore, all assets of the client are safe, they claimed, and the attackers did not reach the customer data. They added that they were cooperating with law enforcement agencies and that the loss was fully covered by the owners.

 

 

[GoGoGo]

Is it sure that Gatehub will go off-ledger? What happens then to anyone having a Ripple wallet with Gatehub?