CoinUnited - Crypto WalletLatest release: 3.4.2 ( 22nd June 2022 ) 🔍 Last analysed 15th November 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 ¶
Users can purchase, use, and receive multiple cryptocurrencies
There are references to DeFi and NFTs.
From their website
CoinUnited.io operates the largest Bitcoin ATM network in Asia
In their FAQ, the first item is about ID verification. They require the following:
- Both sides of ID card
- Address proof within the latest 3 months (bank statement or utility statement)
- Selfie with a paper that handwriting “ CoinUnited.io” and today’s date
- Your name card (Optional)
KYC verification takes 2 business days to conclude.
On the same page, you’ll also find how-to’s regarding the deposit and withdrawal of various cryptocurrencies.
Section 20. If the customer has abused, attempted to abuse, or used other methods to abuse the campaign / bonus / reward plan etc, Company has the right to freeze or close account without any prior notice.
We were not able to receive the SMS verification.
We were not able to find any references to the private key when we searched on their site. Moreover, they refer to the beginning of the relationship between the user and the service as “Account Opening”. Since KYC is required prior to account opening, we assume that the service is custodial. This means that the service acts as a gatekeeper for users prior to being able to use the basic functions of a Bitcoin wallet. This means the app cannot be verified.
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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