Although self-custody is considered the ultimate way to secure one’s own funds, many do not recognize the risks associated with physical storage of seed phrases. A search conducted by the Nevada State Police ended up making a suspect’s seed phrase public after it was caught on body camera.
A viral video circulating on Twitter shows two police officers searching a suspect’s car and finding pieces of paper. It turns out that the suspect was a firm believer in self-custody, as he unfolding the pieces of paper revealed the suspect’s seed phrase, which was written by hand, a popular method of avoiding compromise online.
As the incident was recorded by one of the officers’ body cameras, the suspect’s passphrase has been made public.
This video of cops in Nevada searching for a suspect and finding a seed phrase is pretty wild. Imagine having your seed phrase become part of public record due to it being captured by an officer’s body camera! pic.twitter.com/vS2vm0xh7N
— Jameson Lopp (@lopp) December 18, 2022
This video of cops in Nevada searching a suspect and finding a seed phrase is pretty wild. Imagine your seed phrase becoming part of the public record because it was captured on an officer’s body camera…
The CEO of Binance, Changpeng “CZ” Zhao, watched the video and warned investors about learning the various risks involved with different cryptocurrency storage methods. Said:
“I am a supporter of free choice. Feel free to save your crypto as you wish. But learn the risks of each method.”
The video sparked conversations about the best way to store the seed phrases, with the most popular suggestion being to memorize it. Although the idea of memorizing the seed phrase – a unique combination of 12 or 24 words – sounds safe, CZ pointed out that lack of heredity and forgetfulness of the human mind are two of the biggest flaws when it comes to storing important information. in the “brain wallet”.
The arrest of former FTX CEO Sam Bankman-Fried for alleged misappropriation of funds was seen as a signal to rethink long-term cryptocurrency storage strategies.
Although an immediate reaction was to withdraw funds from crypto exchanges, CEOs went out of their way to ensure the safety of investor funds, regardless of where they intend to store their cryptocurrencies.
On the other side of the spectrum, Ray Youssef, CEO of cryptocurrency exchange Paxful, aligned himself with the idea of bitcoin (BTC) self-custody. He promised to send weekly reminders to all investors to withdraw their funds from the exchange.
“My only responsibility is to help and serve you. That’s why Today I send a message to all our users [de Paxful] so that they transfer their bitcoin to self-custody. You should not keep your savings on Paxful, or any exchange, and only keep what you trade here,” he stated.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.