Moneybrain - Peer to Peer Digital BankingLatest release: 2.1.0 ( 29th March 2022 ) 🔍 Last analysed 22nd 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 ¶
Moneybrain is the first global App to provide access to a full reserve Peer to Peer digital loans and mortgage platform; FCA regulated JustUs. In addition, the Moneybrain App also provides access to the world’s first global equity crowdfunding platform Koodoo.
As an FCA regulated business, Moneybrain has integrated tried and tested identity and money laundering tools to power a global asset backed Peer to Peer digital currency BiPS. BiPS can be stored within the Moneybrain wallet and App, spent and exchanged globally alongside local fiat currencies such as Sterling (GBP), Euro (EUR), US Dollars (USD).
From the General Terms and Conditions:
(e) We may disable your account at any time in our sole discretion without notice or explanation.
We tried the app and registered. It required both email and mobile verification.
While the app features a Personal Account and a Business Account, it is mandatory to complete identity verification first.
Users are redirected to a KYC application online.
We found a tab for Digital Assets and found it was possible to withdraw and deposit BTC. However, before you are given access to these features, you must first complete the KYC verification.
We conclude that this is a custodial app and as such, 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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