ZBGLatest release: 3.2.0 ( 7th October 2022 ) 🔍 Last analysed 8th October 2021 . Custodial: The provider holds the keys
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.
Help spread awareness for build reproducibility
Please help us spread the word discussing the risks of centralized custodians with ZBG 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 ¶
It is described as a cryptocurrency exchange.
Its security features are self-described as:
SECURITY：Multi-level and multi-cluster system architecture. More than 6 years of safe, stable infrastructure operating.
The site features the following legal documents:
Termination of Account
These provisions highlight the site’s power to terminate the account, and hence the funds of the user.
9.1 The website is entitled to cancel your account according to the Terms and the Terms will terminate at the date of cancellation.
9.2 The website is entitled to terminate all services on the services according to the Terms and the Terms will terminate at the date of the termination of services.
9.3 After termination of the Terms you are not entitled to request the website to provide any services or perform any obligations, including but not limited to request the website to reserve or expose any information of the original account, and send you or any third party any unread or sent messages.
We downloaded and registered in the app and found the option to deposit and withdraw BTC. As an exchange, other cryptocurrencies can also be deposited and withdrawn.
All indications point to a centralized, regulated, with KYC requirements, cryptocurrency exchange that is custodial and therefore not verifiable.
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