A good move or stupid idea?

[Tongley]

This is a drainer setup, which is created to panic you and force you to migrate your funds. I don't use it, but it also means your email has been exposed. And it's a shock to me because I could not find any data breach either. So you must contact them through their official website yourself before doing anything else.

The situation clearly indicates a customer data leak. OP should be more careful with incoming emails, especially when they request clicking on certain links or connecting wallets or other things. We who are now used to using wallets will surely notice something strange about the message. This kind of modus operandi may continue to be developed and target customers of other platforms.

I have divided my emails into several parts. For example,

I use a separate email for all kinds of activities related to banking and exchange.

I use one email for all these types of activities to log in to some kind of entertainment site.

I use one email for all these types of activities that are risky.

One of the biggest reasons for dividing it this way is that a hacker will not be able to easily find our necessary or urgent emails. Many times we can accidentally enter a fraudulent website. So it would be better to take this approach so that we do not face any kind of loss due to this mistake. But yes, before entering anywhere, every person must definitely see whether they are entering any kind of fraudulent site or not.

[Sunshine1525]

The main point of a seed phrase (ie. the mnemonic) is for the users to have a way to recover their money in case the device was damaged or lost or ... if that option is removed, then how are their users supposed to be able to recover their money?

That's why anyone using that wallet have to reconsider switching to another option that gives them access to their seed phrase in case where their money needs to be recovered, maybe when they understand the new initiative of Keystone and find out that the disadvantage is not something very negative they can choose to transfer back to the wallet.

I've not seen such a situation whereby one can't have access to recover their money which is why I'm suggesting they use other options till Keystones initiative is tested and trusted.

[letteredhub]

It's something no one should play with.

This stupid to still think it's anything to be called a self custodial still. What makes a wallet self custody is the owners ability to recover his wallet should hardware be lost or destroyed by any means.
This development by keystone technically takes away that ability from the bitcoin wallet owners and giving it to the company. A some kind of monopoly which I consider risky for keystone wallet users.

On a second thought, the mail looks genuine. Scammers will not give you enough time till 2027 to implement anything.

A timeline I had also in thought against how scammers scheme are always swift.

[MisFoxie]

-Snip-

First check properly whether this message was made by a scammer. If there is no backup method then if you lose your device you will lose everything.

Then what is the value of security? If the thief cannot take the funds from the device and you also cannot access them then they are totally lost and no one will be able to recover them.

Maybe the main reason of this implementation is recent hardware wallet being compromised.

Maybe they are thinking that if there is no seed phrase then no one will be able to take the funds from their device in any way. I will never use this device even if they give it for free.

[lombok]

The main point of a seed phrase (ie. the mnemonic) is for the users to have a way to recover their money in case the device was damaged or lost or ... if that option is removed, then how are their users supposed to be able to recover their money?

That's why anyone using that wallet have to reconsider switching to another option that gives them access to their seed phrase in case where their money needs to be recovered, maybe when they understand the new initiative of Keystone and find out that the disadvantage is not something very negative they can choose to transfer back to the wallet.

I've not seen such a situation whereby one can't have access to recover their money which is why I'm suggesting they use other options till Keystones initiative is tested and trusted.

Not having independent access to your recovery code is surely going to take away from your sense of security. The fact that the testing of the new system may turn out to be a threat if there is any problem with the physical device in the future cannot be ruled out. Choosing to move your precious fund to another service is sensible way to safeguard your resources. Being test subject of invention that has not proven itself publically isn't wise at all.

[Asuspawer09]

I don't see some articles or news about it? is it actual came form the right source, or maybe it's a message from hackers possibly?

It's a bad news in my opinion, did a few search meaning your only going to used the hardward passkey, it's not actually doesn't have any kind of passkey but the phrase is already store on the hardware so that there was no need for the seed phrase to be written something like that, so your never going to need it, but you can only access it using the device, but I think that defeat the purpose of recovering using a seed phrase.

I guess it has some advantages and disadvantages, since they might say that if there are no seed phrase, then it won't be prone to attacks trying to steal your seed phrase.

[salad daging]

Thanks for your replies all of you, it's a bit strange that I couldn't find this message on keystone x account, and this message in my mail doesn't consists of any links or me been asked for any recovery seed.

I don't see how I am supposed to get scammed via this email, also I am surprised how my main email account gets the message because it's the actual one I used to purchased keystone.

Has my email address gotten into the hands of bad actors or someone inside keystone facility trying to get the best of me or something? I am too cautious to get scammed though, I will never drop my recovery seed even if it's keystone team asking.

I will wait some days more maybe I will receive extra that will reveal the who agenda behind this message.

Try verifying whether the sender's email is official from Keystone or a clone email? If it's official, Don't trust it.
Yesterday at X Keystone discussed seed security phrase, so this is likely not entirely true seedless architecture, in the roadmap was not mentioned.
- https://x.com/KeystoneWallet/status/2111145756950511941
- https://keyst.one/roadmap

About your leaked email, don't be strange anymore, maybe you registered on some platform whose database was leaked, this is what hacker attacks continue to send spam, especially containing phishing links.

[Popkon6]

Tell me friends, how does a seedless architecture sounds to you?
Of all the things I've learnt in this forum I can't forget how important having access to my recovery seed really is.
It's something no one should play with.

Wallet is the most important thing, you should never joke about this issue because it is the future dream that is stored here and your savings of several years, i.e. Bitcoin. As long as you have the seed phrase, Bitcoin will be under your control, if you do not have the seed phrase, Bitcoin is not under your control. So this issue should be taken very seriously. Every user should take care of his wallet, but you should choose whether the matter comes from the Keystone Wallet website.
However, as far as I know, such a popular hardware wallet will never give such instructions from its website, but if it gives such instructions, it will give you the opportunity to remove your comments.
So you should investigate the issue more carefully and see if this news comes from the original wallet website, I think this is not the news from the original website.

[sunsilk]

I don't see some articles or news about it? is it actual came form the right source, or maybe it's a message from hackers possibly?

It's only sent to him by email, and there's no official announcement from the team itself and they are aware already about this message.

And they have confirmed that this message isn't from them. I think that everyone has already been made aware that this is a hoax.

About your leaked email, don't be strange anymore, maybe you registered on some platform whose database was leaked, this is what hacker attacks continue to send spam, especially containing phishing links.

The hacker got that accurate detail that OP owns a keystone, maybe it's their database that got leaked or wherever OP purchased it. Either directly from them or from an official reseller.

[Zigabel]

For me, the biggest flaw with seedless architecture is how much control the user actually retains over recovery. If it’s not possible for me to independently recover my Bitcoin without actually relying on the company or their services, then how exactly is that self custody?? Convenience no matter the level should never come at the expense of complete control over recovery, because losing access to a wallet is just same thing as losing the funds permanently. If anyone wants to consider this approach then the first thing they should consider should be how recovery works as well as what would happen if the company actually shuts down, but my best advice would be to not even consider such an option.

A very good percentage of Seedless Frame works gives users limited control, such not enough for them to have access at almost every or anytime they want, to a large extent, that gets to be controlled by the system, only that they get some level of security and responsibilities tied around the system for the safety of their asset, although limited, but can be when rules abided with. Personally i don't consider such as self custody, because the idea of self custody is supposed to give you the utmost control at all levels and not some conditioned and restricted form of control still in the guise of self custody.

Considering such should be mainly for the purpose of exchange or trades, and probably peer to peer transactions, other wise, for the  purpose of investment, i consider it too risky, because like you have said if the company folds up, what happens to the funds?.

[Awaklara]

I use one email for all these types of activities that are risky.

We could do it by having several email accounts, but not everyone is able to manage them well. Considering that emails and passwords are certainly not easy. Storing them online also carries risks.

One of the biggest reasons for dividing it this way is that a hacker will not be able to easily find our necessary or urgent emails.

In such cases, the hacker does not hack your email but the customer data from the platform you registered using your email. So the hacker can send you emails for certain purposes. Even if there is a phone number, the hacker can also use it to send you messages. 
Our loss as customers of a platform that has experienced a data breach may not be financial. But our data may be spread and possibly even sold.

[L E G E N D A R Y]

A very good percentage of Seedless Frame works gives users limited control, such not enough for them to have access at almost every or anytime they want, to a large extent, that gets to be controlled by the system, only that they get some level of security and responsibilities tied around the system for the safety of their asset, although limited, but can be when rules abided with. Personally i don't consider such as self custody, because the idea of self custody is supposed to give you the utmost control at all levels and not some conditioned and restricted form of control still in the guise of self custody.

Considering such should be mainly for the purpose of exchange or trades, and probably peer to peer transactions, other wise, for the  purpose of investment, i consider it too risky, because like you have said if the company folds up, what happens to the funds?.

It’s crucial to have a good understanding of who actually controls the keys as well as who can restrict access to your money before trusting any wallet service with your Bitcoin. If the company in question can actually freeze your balance or can be able to change the rules or how you can access your money or even restrict you from withdrawing when and where you want without your consent, then it’s a complete red flag because what you’re doing is exposing yourself and funds to risks that Bitcoin was meant to eliminate via self custody. Some wallets may seem convenient, but it’s crucial to always remember that the actual goal of Bitcoin isn’t convenience but self custody and if any wallet service goes against this, then it’s a big red flag.