Please help us spread the word discussing the risks of centralized custodians with Burency
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.
Describes itself as a regulated cryptocurrency exchange
Terms and Conditions
Section 11 focuses on account termination,
We downloaded the app, but was unable to find any feature that allows the export of private keys.
Any app that has the power to suspend, freeze or lock accounts is custodial and not verifiable.
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
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.