Rocket by Chiji14xchange - buy and sell cryptolatest release: 3.0.5 ( 22nd May 2021 ) last analysed 23rd September 2021 Custodial: The provider holds the keys
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Please help us spread the word discussing the risks of centralized custodians with Rocket by Chiji14xchange - buy and sell crypto 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 ¶
There is not that much information in the Play Store description:
Welcome to Chiji14xchange App, this App enables you to transact and exchange bitcoins and gift cards with adequate security features that guarantees safety for clients at all times.
Searching the website, we find that KYC verification is in use.
In order to meet regulatory standards and to aid in crime prevention and detection, Chiji14Xchange has taken steps to ensure proper customer identification through its Customer Due Diligence and Know Your Customer (KYC) procedure.
It is unknown where the keys are stored.
We find that this exchange uses Peer to Peer trading.
P2P trading system allows you to connect with any interested buyer/seller of crypto asset. Which means you can trade Bitcoin/USDT with other traders interested in buying or selling crypto assets.
Here is their word on Rocket’s involvement:
Rocket P2P platform serves as the gateway for the trade by providing a platform for buyers and sellers to broadcast their offers, and at the same time, serves as escrow services of online digital asset to ensure the safety and timely delivery of digital asset during trade execution.
Customers can add their bank account and use fiat to buy BTC from the listings of other users. The platform can also be used to pay bills.
From the terms & conditions:
Chiji14xchange securely stores all Digital Currency private keys in our control in a combination of online and offline storage.
This confirms that the provider is in control of the keys, making this app custodial. Thus, it is 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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