BitStamp also uses BitGo. Do they have the same completely insecure setup as BitFinex?

BitFinex had a ridiculous setup in which all of the BTC was stored at BitGo, an apparently-secure bank, but then BitGo would do whatever BitFinex said to do with the BTC. It's almost exactly the same thing as putting everything into a hot wallet.BitStamp and several other big sites also use BitGo. I think that these sites should reexamine their BitGo setup to make sure that it isn't insecure in the same way as BitFinex, and release a statement summarizing their findings.Also, exchanges should really be running their own full nodes and managing their own coins, not relying on massively centralized third-parties. What if BitGo itself had been hacked? If they allow their customers to use a setup that is this embarrassingly insecure, I don't have much confidence in their overall security. via /r/Bitcoin http://bit.ly/2aH67pa