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RahaExchange Trader

Latest release: 1.007 ( 1st September 2022 ) 🔍 Last analysed 6th July 2022 . Custodial: The provider holds the keys
4.3 ★★★★★
10 thousand
14th March 2021

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 the answer is "no", we mark it as "Custodial: The provider holds the keys".

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.
The product cannot be independently verified. If the provider puts your funds at risk on purpose or by accident, you will probably not know about the issue before people start losing money. If the provider is more criminally inclined he might have collected all the backups of all the wallets, ready to be emptied at the press of a button. The product might have a formidable track record but out of distress or change in management turns out to be evil from some point on, with nobody outside ever knowing before it is too late.

Help spread awareness for build reproducibility

Please help us spread the word discussing the risks of centralized custodians with RahaExchange Trader  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.

If you find something we should include, you can create an issue or edit this analysis yourself and create a merge request for your changes.

The Analysis 

RahaExchange Trader is an Arabic cryptocurrency trading app. According to the description, users are able to send and receive many different cryptocurrencies including BTC, ETH, XRP, LTC, and BCH.

Registration involves account verification and high security protocols are implemented “to ensure the protection of [the user’s] assets.” Here are RahaExchange’s exact words on security:

Security: Highest security protocols and standards have been implemented by the Raha Exchange team to ensure the protection of our customer’s assets. Furthermore, to better ensure our users, all of the participants within the market will be verified

Simple verification: In Raha Exchange you, the esteemed user will be verified and registered with the help of our professional support team.

Furthermore, the account of the user is synchronized between the mobile app and a web app. Tapping the wallet icon on the mobile app brings up a login screen. There are many indications that the custodian here is the exchange itself.

We searched the website although could find no evidence that private keys are held by the user.

(dg)