Security Update from Magnr: Client funds remain safe

Another Bitcoin trading platform Magnr just sent following mail to all their customers:

Dear Client,

In the past 24 hours, Bitfinex has announced that their exchange has been victim of a security breach resulting in the suspension of activity on their website until further notice.

 As a result, we have placed a temporarily pause on Magnr Trading. During this time, clients will have the ability to liquidate existing open trades on Bitstamp and itBit but will not be able to open new trading positions.

 Security

To reassure our clients, we would like to remind you that accountability of client funds remains our top priority. Integral to managing this, Magnr has never run hot-wallet infrastructure where private-keys are held on servers. Our priority of security over convenience ensures that we remain accountable for every Satoshi we manage.

 Bitcoins at Magnr are kept in cold storage facilities and require multiple signatories to access. This allows for a greater level of accountability of client funds at all times.

 Control of funds

As part of our business process, every single client Withdrawal is monitored and subjected to a process of human-audit and manual handling from our cold-storage facilities. This process means that withdrawals can take up to 24 hours and is a policy designed to prioritize security over convenience.

 Given our strict level of practice, we can confidently advise that since inception of the company in 2014 there has never been a security breach or compromise of client funds under our management.

I hope Magnr may not another Bitfinex and client funds are safe.