AAX-Trade Crypto, Bitcoin, ETHLatest release: 3.2.10 ( 23rd May 2022 ) 🔍 Last analysed 27th August 2021 . Custodial: The provider holds the keys
Help spread awareness for build reproducibility
Please help us spread the word discussing the risks of centralized custodians with AAX-Trade Crypto, Bitcoin, ETH via their Twitter!
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 ¶
AAX Exchange has the following products:
- P2P Trading
- Fast Buy
AAX has built a proprietary multi-currency wallet system. This system complies with industry standards, is multi-signature and offers no single point of failure. There is no dependency on a single source of security and robust recovery protocols are in place.
Additionally, AAX has Hardware Security Modules (HSMs) in place to protect end-user private keys used to co-sign transactions.
The majority of digital assets on AAX are held in secure offline storage facilities, leveraging industry-standard encryption technologies across multiple tiers. Sensitive data that normally resides on company servers is disconnected entirely from the Internet.
Upon request, AAX is also able to offer insured crypto custody within fully regulated entities.
4.9.1. You may request withdrawal of your Digital Assets, subject to termination conditions in Clause 11 by making a withdrawal instruction through the Platform.
This complex trading platform which has a lot of services covers in its terms and conditions indications that it is a custodial service.
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.
Share onTwitter Facebook LinkedIn
Or embed a widget in your website
<iframe src="https://walletscrutiny.com/widget/#appId=android/com.aax.exchange&theme=auto&style=short" name="_ts" style="min-width:180px;border:0;border-radius:10px;max-width:280px;min-height:30px;"> </iframe>
<iframe src="https://walletscrutiny.com/widget/#appId=android/com.aax.exchange&theme=auto&style=long" style="max-width:100%;width:342px;border:0;border-radius:10px;min-height:290px;"> </iframe>