Lednlatest release: 0.1.3 ( 28th January 2021 ) last analysed 10th November 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)
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If you have breached any provision of the Terms of Service or are otherwise not in full compliance with these Terms of Service, the permissions granted to you hereunder will automatically terminate, and in such circumstance, you will no longer use or access, or be entitled to use or access, the Platform, your Ledn Account or the Services. We reserve the right to terminate your right to use the Platform, or block you from future use, at any time in our sole discretion, with or without cause, and without notice to you.
Without prejudice to any of our other rights under these Terms of Service, if you breach these Terms of Service in any way, you agree and acknowledge that we may take such action as we deem appropriate to deal with the breach, including suspending your access to the Platform, prohibiting you from accessing the Platform, blocking computers using your IP address from accessing the Platform, contacting your internet service or other telecommunications provider to request that it block your access to the Platform, contact any private or public law enforcement authority and disclose any information we may have about you regardless of how it was obtained,
In order to qualify for a Savings account, the user must have passed Ledn’s KYC process. Users can then deposit Bitcoin.
To apply for a Savings Account, you must have a Ledn Account and have completed our know-your-client verification process. You apply for a Savings Account by clicking the “Deposit” button on the “BTC Savings” or the “USDC Savings” page of the Platform or by otherwise requesting to use or open a Savings Account.
The withdrawal process entails requires approval from Ledn.
The app allows users to deposit, withdraw, save and borrow against bitcoin. It functions as a wallet with some features and some restrictions. The service is custodial, making the app 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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