You Can't Be Too Careful Over Private Keys, Can You?

[FatFork]

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And now after reading the article, I can say again, if you don't own the keys, then you don't own the crypto.

It doesn't help to have your own keys if someone else has access to them too. Did you read the article? This isn't a case of custodial versus non-custodial wallets. The issue is about security breaches and compromised private keys through backdoors created by rogue employees. Even with your own keys, if they're compromised, your crypto is at risk.

[Hyphen(-)]

It doesn't look as if those wallets had issues. What I'm beginning to see is that there's always a loophole only if the hacker looks closely enough or if the owner is careless enough.

It is a wallet issue because I don't think I have heard of similar cases in any reputable wallets like Electrum, Bluewallet, and other open source wallets.

Sometimes, this problem can come from downloading fake wallets; scammers have already created a clone wallet that looks exactly like the original wallets with just a few unnoticeable things that not everyone will understand, and they will gain access to your private key once you input it in the wallet.
While trying to invest, make sure you use a reputable wallet, and be sure you downloaded the wallet from their official website.

[SquirrelJulietGarden]

Sometimes, this problem can come from downloading fake wallets; scammers have already created a clone wallet that looks exactly like the original wallets with just a few unnoticeable things that not everyone will understand, and they will gain access to your private key once you input it in the wallet.
While trying to invest, make sure you use a reputable wallet, and be sure you downloaded the wallet from their official website.

The key is download Bitcoin wallet softwares from official websites. It is a first step but not enough.

A next step is very important, verify what you download, and when it is confirmed as a legit one, you can start use it for storing your bitcoin.

The next step is creating your wallet properly like write down mnemonic seed for back up, test your back up as if you write down mnemonic seed words inaccurately, you can not use it for wallet recovery later.

How to back up a seed phrase

[ektotanes]

I'm always concerned about the security of my crypto. I believe that it's best to use well-established non-custodial wallets, such as OWNR or Trust Wallet. We will never be completely safe from hacking and other cyber threats, but we can make sure we've done everything we can to protect ourselves.

[SickDayIn]

3 years prison and a fine of 30,000 RMB (converted to $4,200 USD), is a small price to pay to access that many private keys. Seems they actually got a deal.

[SFR10]

There should be a better way of choosing a staff maybe they should have a complains form to fill if they violate any of these rules either by stealing funds or revealing someone else information they should pay for it.

Even if such a form existed, I highly doubt a potential staff member with a track record as a rogue employee would fill this kind of form ^{[it'd jeopardize their chances of getting the job]}!

Checking the wallet you are using is what makes your assets safe and there will be no loophole if it's open source.

You have a point, but just because certain software is open-source, it doesn't mean it can't suffer from zero-day vulnerabilities and exploits.

Done.

For some reason, it's not working on my side.

[albon]

I wouldn't say that this is hacking or that the owners of those wallet was careless with their private keys. It was an intentional act by Zhank because he wanted to steal their funds that was why he made a back door to have access to people's private keys.

This is why open source wallets are the best wallets for storing bitcoin because it is open for all to look into the source code and improve the security. It is only a closed source wallet that a back door can be created unknown to the users. An open source wallet can not be compromised only if you expose your private keys or malware and Spyware attack your system unknown to you, because there is no back door.

They were mistaken in trusting the use of the Houbi wallet or any wallet managed by centralized authorities. Indeed, since the wallet was a closed source, this is what made the unethical employees succeed in this heinous fraud by placing the backdoor in it, which gave them unauthorized access to its users' seed phrases and private keys. I agree with you that with open-source wallets, security vulnerabilities can be examined, discovered, and fixed, and they receive continuous updates; the mistake that may expose the user of these wallets to hacking is downloading fake wallets from unknown sources.

The fact that they have now closed this wallet and launched iToken might be better. Still, I personally only trust well-known, open-source Bitcoin wallets recognized by the crypto community, avoiding any other untrusted wallets.

[Z-tight]

I'm always concerned about the security of my crypto. I believe that it's best to use well-established non-custodial wallets, such as OWNR or Trust Wallet. We will never be completely safe from hacking and other cyber threats, but we can make sure we've done everything we can to protect ourselves.

You have just mentioned two wallets that i would not recommend, Trust wallet is closed source, and i don't know much about OWNR wallet, neither have i read reputable members recommend it in it forum. Doing everything you can do to protect your funds starts by using a well reviewed open source wallet and running it in an airgapped wallet that will never be connected to the internet, as anything online is always prone to hacking.

[hosseinimr93]

You have just mentioned two wallets that i would not recommend, Trust wallet is closed source, and i don't know much about OWNR wallet, neither have i read reputable members recommend it in it

I didn't know anything about OWNR wallet either. I just searched about it and found this article on their official website. The article says that the wallet is close source and the funny thing is that they somehow say that being close-source is better.

Trustwallet, OWNR and any other close-source wallet should be avoided.

[PrivacyG]

Put the Private Keys in the hand of the most respectable and well known man for being honest.  Make them all sign an NDA.  Promise harsh punishments for those who steer away from the morality they signed up for.  And still, Custodial Wallets are nothing but a head ache we do not deserve.

It is all that easy and simple.  If you ever use a Custodial Wallet, EMPTY IT OUT AS SOON AS POSSIBLE.  But the smartest and best idea still remains NOT using a Custodial Wallet at all.  Is comfort really this tempting that these guys choose it over the Security of their own Money?  I find it so mind bubbling.  Secure your own Money, it is easy to do it.

And who did we really think were handling these Private Keys anyway?  People, and people are often vulnerable to a lot of things.  Including to becoming vile all of a sudden.

[Z-tight]

The article says that the wallet is close source and the funny thing is that they somehow say that being close-source is better.

Thank you for sharing, but i don't know why i cannot access the article, maybe it is a problem from my end though. However, i am certain the person who wrote that article knows that they are lying about a closed source wallet being better than one that is open source, and that is another reason not to use this wallet, because it is one that tries to deceive their customers who don't have so much knowledge about crypto wallets.

[Adbitco]

There should be a better way of choosing a staff maybe they should have a complains form to fill if they violate any of these rules either by stealing funds or revealing someone else information they should pay for it.

Even if such a form existed, I highly doubt a potential staff member with a track record as a rogue employee would fill this kind of form ^{[it'd jeopardize their chances of getting the job]}!

Yeah but even as that there should be a better way, most times we can say trust and record can be broken or we don't know what they are suffering at there end to tarnished there trust which people had on them. For instance this doesn't happen immediately they go employed but after years they should up their devil in them so at this point there should be something to bind there employment with this there could be some what a lasting trust.

[BlackBoss_]

I didn't know anything about OWNR wallet either. I just searched about it and found this article on their official website. The article says that the wallet is close source and the funny thing is that they somehow say that being close-source is better.

Trustwallet, OWNR and any other close-source wallet should be avoided.

This website https://walletscrutiny.com/ is helpful to check summary reviews on Bitcoin and cryptocurrency wallets like is a wallet open-source (reproducible) or not.

Some queries for checking Trust wallet and OWNR wallet.
https://walletscrutiny.com/?platform=allPlatforms&page=0&query-string=Trust
https://walletscrutiny.com/?platform=allPlatforms&page=0&query-string=OWNR

A quick view can give No Source information for both Trust wallet and OWNR wallet.