SmartWalletlatest release: 2.0.24 ( 30th September 2021 ) last analysed 4th October 2021 Custodial: The provider holds the keys
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Do your own research!
Try out searching for "lost bitcoins", "stole my money" or "scammers" together with the wallet's name, even if you think the wallet is generally trustworthy. For all the bigger wallets you will find accusations. Make sure you understand why they were made and if you are comfortable with the provider's reaction.
The Analysis ¶
From the description:
Send and receive cryptocurrencies easily and fast to any other wallet!
It claims to function as a bitcoin wallet. Judging from the description, it is also able to send/receive and buy/sell. There is no word on self-custody or where the private keys are stored, so we moved on to the site.
From the FAQ:
Can I sell bitcoins?: Yes. On our platform, the purchase and sale of bitcoins is done directly with us. That is, Stratum buys / sell your bitcoin.
Sounds like a trading platform. There is still no information about the security of this app.
After installing the app, users are asked to access the Smart Wallet website on desktop and enter the User ID and 2 Validation Codes. Unfortunately there was an error page that prevented us from signing in:
Whoops, looks like something went wrong.
Due to this, we were unable to access the app.
While we await the reply from the support email, it seems that private keys are not provided to the user. This app will be classified as a custodial product, thus not-verifiable.
As the provider of this product holds the keys, verifiability of the product is not relevant to the security of the funds!
As part of our Methodology, we ask:Is the product self-custodial? If not, we tag it Custodial!
A custodial service is a service where the funds are held by a third party like the provider. The custodial service can at any point steal all the funds of all the users at their discretion. Our investigations stop there.
Some services might claim their setup is super secure, that they don’t actually have access to the funds, or that the access is shared between multiple parties. For our evaluation of it being a wallet, these details are irrelevant. They might be a trustworthy Bitcoin bank and they might be a better fit for certain users than being your own bank but our investigation still stops there as we are only interested in wallets.
Products that claim to be non-custodial but feature custodial accounts without very clearly marking those as custodial are also considered “custodial” as a whole to avoid misguiding users that follow our assessment.
This verdict means that the provider might or might not publish source code and maybe it is even possible to reproduce the build from the source code but as it is custodial, the provider already has control over the funds, so it is not a wallet where you would be in exclusive control of your funds.
We have to acknowledge that a huge majority of Bitcoiners are currently using custodial Bitcoin banks. If you do, please:
- Do your own research if the provider is trust-worthy!
- Check if you know at least enough about them so you can sue them when you have to!
- Check if the provider is under a jurisdiction that will allow them to release your funds when you need them?
- Check if the provider is taking security measures proportional to the amount of funds secured? If they have a million users and don’t use cold storage, that hot wallet is a million times more valuable for hackers to attack. A million times more effort will be taken by hackers to infiltrate their security systems.
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