ChainEXlatest release: Varies with device ( 30th September 2021 ) last analysed 26th October 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 ¶
ChainEX provides you with a secure, online platform from which you can purchase and trade with different digital assets.
ChainEX makes your security our utmost priority. Your digital assets are safely held in hot and cold storage. Your account is secured with 2FA (2-Factor Authentication). Your data and information are encrypted.
From ChainEX’s Terms of Service:
7. TERMINATION 7.1 ChainEX may suspend, restrict, or terminate your access to any or all of the ChainEX services, and/or deactivate or cancel your ChainEX account if:
- ChainEX is so required by a facially valid subpoena, court order, or binding order of a government authority;
- ChainEX reasonably suspects you of using your ChainEX account in connection with a Prohibited Use or Business;
- Use of your ChainEX account is subject to any pending litigation, investigation, or government proceeding and/or ChainEX perceives a heightened risk of legal or regulatory non-compliance associated with your account activity;
- ChainEX service partners are unable to support your use; or
- You take any action that ChainEX deems as circumventing ChainEX’s controls, including, but not limited to, opening multiple ChainEX accounts or abusing promotions which ChainEX may offer from time to time.
Users can withdraw into external wallets or into a bank account. 2FA is required for withdrawal.
The app was not available in our region. We could not install it.
ChainEX is custodial and thus 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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