Kuna.io— buy&sell BTC ETH USDTLatest release: 1.4.17 ( 30th May 2022 ) 🔍 Last analysed 15th September 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 ¶
The Kuna suite of services is not just the app that we’re currently describing. This is the description on its Google Play page:
Kuna - the mobile app for purchasing, selling and storing cryptocurrency
The Kuna User Agreement further elaborates:
“KUNA” refers to an ecosystem comprising KUNA websites (whose domain names include but are not limited to kuna.io), mobile applications, clients, applets and other applications that are developed to offer KUNA Services, and includes independently-operated platforms, websites and clients within the ecosystem (e.g. КUNA.IO, Kuna Labs Business Inc, KUNAWALLET OÜ, KUNA IP and payment gateways)
Section 126.96.36.199 of the User Agreement describes this specific wallet/app as custodial.
However, Sections 188.8.131.52 and 184.108.40.206, refer to the provision and creation of a non-custodial wallet.
We downloaded the app that is custodial.
In case of providing a non-custodial Wallet Company doesn’t have any access to Users assets or keys, doesn’t participate in transfers and has no impact on them.
When You create a non-custodial Wallet, You will be assigned a private key. You will be prompted to download or save a keystore - your private key encrypted with a password. You will be responsible for maintaining the confidentiality of Your private key or keystore, and will be fully responsible for any and all activities that occur under your account.
We then emailed Kuna support to verify the existence of their non-custodial wallet, if any.
At the time of this writing, we are still waiting for their reply.
Tentatively, we are inclined to label this specific app or service as custodial with no source code that can be readily verified. We will change our verdict should new information arise.
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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