Why I dont worry too much about using closed source wallet

[Riocasino]

The reason I dont worry too much of it and dont bother to put there.

Is because the chances of getting hacked by the company or other is extremely low.

Assuming the company start to scam people and do something nasty. do you know how many trustwallet users are? 10 Million +.


People quickly would report that their funds would dissapear and you would have enough time to transfer your funds to other wallet with your seed.

1 company cant empty 10 million wallets so fast.

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[elevates]

The reason I dont worry too much of it and dont bother to put there.

Is because the chances of getting hacked by the company or other is extremely low.

Just do a google search about FTX, Luna, and MtGox and you will find your answer.

Assuming the company start to scam people and do something nasty. do you know how many trustwallet users are? 10 Million +.


People quickly would report that their funds would dissapear and you would have enough time to transfer your funds to other wallet with your seed.

1 company cant empty 10 million wallets so fast.

The block will be placed completely on their network and that simply means no one will be able to transact when they decide to scam. It only takes few seconds to place a block you won't have time to think too in such a situation.

[Riocasino]

The reason I dont worry too much of it and dont bother to put there.

Is because the chances of getting hacked by the company or other is extremely low.

Just do a google search about FTX, Luna, and MtGox and you will find your answer.

Assuming the company start to scam people and do something nasty. do you know how many trustwallet users are? 10 Million +.


People quickly would report that their funds would dissapear and you would have enough time to transfer your funds to other wallet with your seed.

1 company cant empty 10 million wallets so fast.

The block will be placed completely on their network and that simply means no one will be able to transact when they decide to scam. It only takes few seconds to place a block you won't have time to think too in such a situation.

It other technology i dont believe they have easy access to millions of wallets because its using seed.  They need to open seed every time to empty wallet.
FTX access to funds are different i believe due to its web application technology.

[libert19]

It other technology i dont believe they have easy access to millions of wallets because its using seed.  They need to open seed every time to empty wallet.

That's naive assumption. They have created a fully fledged software wallet, they can create script or similar which automatically wipes out user funds in minutes.

[JeromeTash]

You seem to be so naive based on what you have just posted up there.

There are several reason close source wallets/service are not encouraged for use because as a user, you will be in the blind. A code could be planted in the source code, allowing the hacker to read your seed phrases and transfer funds out as soon as you make a deposit or even drain hundreds of thousands of addresses in just a second.

Welcome to the world of automation, don't think everything has to be done slowly and manually

[pooya87]

People were saying the same thing about FTX, Cryptsy, MtGox, and a whole lot of other centralized services too (which is what closed source wallets like TrustWallet are like). They were saying "they have been running for X number of days, have Y number of users and Z million dollars go through them; it is impossible for them to run away". The rest is history...

Besides it is not always about the company itself scamming its users, or not all its users (ie. selective scamming), but another risk is a third party hacked exploiting the backdoors in the closed source software that the company has placed in it (intentionally or unintentionally) and stealing your funds. Kind of like Windows where the risk is not only Microsoft hacking you but other hackers exploiting the backdoors Microsoft has placed in their product to hack you.

[tranthidung]

People quickly would report that their funds would dissapear and you would have enough time to transfer your funds to other wallet with your seed.

1 company cant empty 10 million wallets so fast.

What you say is untrue.

If they plan to scam their users, they would code an auto script to automatic do everything and with such bot, things will be done in a few seconds and minutes. You will have nearly zero chance to exit.

What you say is more relevant to attacks on blockchain which can be detected automatically by big exchanges which run their own nodes and after having detection, they can react to keep their funds safely. Example are reactions of Coinbase in Ethereum Classic attacks.

• The exchange and wallet firm, Coinbase, said it had detected a so-called “chain reorganization” in which nearly $500,000 worth of ethereum classic

[cryptoaddictchie]

Is because the chances of getting hacked by the company or other is extremely low.

Assuming the company start to scam people and do something nasty. do you know how many trustwallet users are? 10 Million +.

You are right. Provided that the trustwallet is handled by CZ, however this does not guaranteed safety all the time. From the word itself its closed source means they still have an edge whatever goes wrong with their platform. Its not like Im saying they will ring any bells or what but always make cautious since its still a possible scenario for every big firms out there.

[PrivacyG]

You are so naive.

By the time some body reports their funds are gone, yours may be gone as well.

If an app was maliciously made.  The app developer could have coded it so they own access to all their customers coins.  It is possible they do not even need a script or anything.  Just have everyone's funds in the same wallet and transfer all at once.

Say this is not the case and it takes a while until they empty all wallets.  You may be having a long poop and by the time you are done, everyone's funds are gone.  You had two hours.  But you do not pay attention to what happens in the Cryptocurrency space every single second of your life, do you.

Even worse.  If they are selectively emptying wallets.  Yours could be the first on the list.

Your post is exactly why you are going to be scammed one day.

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Regards,
PrivacyG

[hosseinimr93]

A good example why you shouldn't use close-source wallets is Coinomi.
Coinomi has been always a popular wallet and many people have used it, but it had a vulnerability sending users seed phrase to google servers.

Visit the following topic and see how that vulnerability caused a user to lose all his money.
WARNING - Coinomi Wallet CRITICAL Vulnerability Made Me Lose My Life Savings

[Plaguedeath]

The reason I dont worry too much of it and dont bother to put there.

Is because the chances of getting hacked by the company or other is extremely low.

Just do a google search about FTX, Luna, and MtGox and you will find your answer.

To be fair both FTX and MtGox are centralized exchange while Luna is a shitcoin project, while @OP is discuss about wallet, so you need to give an example about which wallet has been hacked especially the closed source one.

@hosseinimr93 gave a good example how closed source wallet is bad even though it's non custodial, the fact is many users are still use Coinomi even though someone already make a report. So I wouldn't be surprised if there's a new user will make an accusation against this wallet again.

[Outhue]

I don't feel sorry for you because it seems you don't understand why open source is very important when keeping your funds or assets in your crypto wallet, the only one I trust is Electrum and Trust wallet, you don't want to trust closed source wallets, do you even understand what that means? They are completely not transparent.

Don't come back here and start screaming that crypto is scam, you've been warned.

[Doan9269]

Is because the chances of getting hacked by the company or other is extremely low.

Provided you aren't slerk in safeguarding your keys, talking about open and close source, we have them both in using a cold storage but i will asdume you're referring to the exchanges here which can be centralized  exchange (custodial) or decentralized exchange (non custodial) but there are decentralized wallet that are either an open source or closed source wallet and this has to do with your preference, but advisably you should go for open source decentralized wallets, get more information from this Open Source Hardware Wallets

[jackg]

The reason I dont worry too much of it and dont bother to put there.

Is because the chances of getting hacked by the company or other is extremely low.

It kinda sounds like it's because you're too lazy to do anything else. Which is an OK reason but you seem to be trying to hide it?

If you've checked your nmemonic works in other wallets too for recovering the funds then you have some extra safety (because that IS open source if it's using bip39).

1 company cant empty 10 million wallets so fast.

They could empty the largest of the person who isn't related to them, then wait, then go for the next biggest and continue (if they wait enough time, people will keep trusting them before they empty a lot of users wallets - they can fairly easily track when you're online and just need to target a rolling attack for everyone they suspect won't be).

[Upgrade00]

Is because the chances of getting hacked by the company or other is extremely low.

Your argument is flawed from the start, but why gamble with the perceived low risk when you can simply use an open source alternative at no extra cost?

Assuming the company start to scam people and do something nasty. do you know how many trustwallet users are? 10 Million +.
People quickly would report that their funds would dissapear and you would have enough time to transfer your funds to other wallet with your seed.

Besides the fact that scripts can be created to simultaneously wipe user funds above xxxamount, If hypothetically, the situation you described above was correct, there is no certainty that your wallet would not be among those looted first.

You put your funds and privacy at risk when using such platforms this way and have no incentive to do so.

[boyptc]

You're too confident until it happens to you but let's put it like this, what if it's not about the company but about you? On how you browse through your phone where the trust wallet is installed.

But even if you reverse the situation and stuff, you'll be ending up realizing that it's owned by a centralized company and things may go south at your least expected time if it will.

If the past situations weren't enough to learn, I guess a personal experience coming from you will change your perspective.

Well, anyway as they say, your money - your rules.

[AbuBhakar]

People quickly would report that their funds would dissapear and you would have enough time to transfer your funds to other wallet with your seed.

1 company cant empty 10 million wallets so fast.

Not all users is checking there wallet most of the time because many newbie just leave there crypto on there wallet as savings and just check it occasionally. Those people doesn’t have time to react in case the wallet become scam. Lucky for you because you might have a lot of time to check but the majority of crypto user is using crypto as savings and not for daily transactions.

Why people need to worry about this company can turn scam eventually while there’s a lot of open source wallet available that will give a peace of mind to there savings?

[m2017]

The reason I dont worry too much of it and dont bother to put there.

You have the right to do with your assets as you wish and closed source doesn't mean 100% that there will be some trick with the wallet

Is because the chances of getting hacked by the company or other is extremely low.

But this chance is not 0%, which means that risks remain. Are you willing to risk your money?

Assuming the company start to scam people and do something nasty. do you know how many trustwallet users are? 10 Million +.

Do you see a correlation between the number of users and the likelihood of a scam? The more users, the more money can be stolen. Profit.

People quickly would report that their funds would dissapear and you would have enough time to transfer your funds to other wallet with your seed.

1 company cant empty 10 million wallets so fast.

I wouldn't be so sure about it. I think it's technically easy to implement.

[FatFork]

It other technology i dont believe they have easy access to millions of wallets because its using seed.  They need to open seed every time to empty wallet.

And you're assuming that someone who gets ahold of bunch of seeds won't be able to access all the wallets generated by those seeds in one batch process? That's a very bad assumption, especially if you're risking your money.

[PrivacyG]

And you're assuming that someone who gets ahold of bunch of seeds won't be able to access all the wallets generated by those seeds in one batch process? That's a very bad assumption, especially if you're risking your money.

It can be translated as, I do not worry about giving a stranger my money for a minute because even if they run away with it, I will notice just in time to start running after them and catch them up before they are gone.

The problem is OP already knows they can be scammed and yet continues thinking chances are low.  If OP has close to zero knowledge about Bitcoin and security in general.  Why even bother pretending to know better.  There are others who actually know better and will screw you up before you even know it.

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Regards,
PrivacyG