HaggleX: Buy/Sell BTC and ETHLatest release: 1.1.2 ( 27th November 2021 ) 🔍 Last analysed 1st 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 ¶
(Analysis from Android review)
The app has a short Play Store description:
With HaggleX, anyone can buy and sell BITCOIN ETHEREUM, EOS ,TRON, DASH and DOGE coin.
Personal information we collect
We collect information that relates to you (“Personal Data”) in connection with your use of the Website, our Services. or otherwise in the context of our relationship with you. The types of Personal Data that we may obtain from you may include:
[…] Data relating to your Digital asset wallet, including:
- Private Keys
- Public Keys
- Wallet Balance
- Transactions received
We downloaded the app and were able to access the BTC wallet. It has capabilities to send and receive Bitcoins via a public address or a QR code. The app however, did not generate a mnemonic or a seed phrase. There’s also no option to create a backup. Furthermore, the service requires KYC and identity verification for different user levels. This is indicative of a custodial service.
However it noted in its whitepaper that it will be offering a non-custodial wallet as well as P2P trading in the near future.
Pending the release of their non-custodial app, this app 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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