In 2020, the global economy is turbulent. As part of the financial ecology, crypto currency circle isn't immune from that.
OKEX became the focus of the crypto in October. As one of the world's three largest cryptocurrency exchanges, its founder Xu Mingxing was arrested and lost contact, resulting in the situation of suspension of withdrawals. User assets were frozen, and the centralized exchange private key management mechanism caused strong social concerns.
In fact, long before the OKEX incident, hacking attacks or scandals of other similar exchanges and wallets were reported many times.
- Incident 1: BitMEX CTO was arrested
On Oct 2nd, 2020, on the day of the BitMEX defendant's lawsuit, US regulators filed a lawsuit against the executives and entity companies of BitMEX, one of the world's largest cryptocurrency trading platforms. BitMEX CTO has been accused of violating KYC and anti-money laundering related regulatory regulations. After the arrest, the compliance of the centralized exchange was once questioned.
[ When the private key of users’ funds are managed by a centralized exchange or custodial wallet, once the personnel of these companies are investigated by the judicial department, users’ funds will be frozen indefinitely until the investigation is completed; ]
- Incident 2: Abnormal transfers in Kucoin Hot Wallet
In the early morning of Sep 26th, 2020, a hacker broke into the Hot Wallet of Kucoin. The official announcement admitted that the abnormal transfer was a hacker's currency theft, and stated that the platform lost digital assets worth nearly $150 million in the hacker attack.
- Incident 3: Trezor hardware wallet private key can be stolen
On Feb 1st, 2020, Kraken’s security division revealed that Trezor hardware wallet and its derivatives can be stolen by hackers. Although the entire theft process was quite complicated, Kraken claimed that hackers ”can access the device and commit the theft successfully in 15 minutes”.
[ When the users’ private keys are managed by centralized exchanges or custodial wallets, once these exchanges or wallets are hacked, funds will be easily stolen/lost; ]
- Event 4: FCoin Exchange shut down
On the evening of Feb 12th, FCoin issued an announcement on the latest progress of system maintenance and withdrawal applications. The announcement denied that Fcoin was hacked, saying that due to the loss of key personnel and severe damage to some systems and data, it could not be restored in time as planned. FCoin stated that in order to meet the needs of some users who urgently need to withdraw, it will open the operation of applying for withdrawal by email. (For more details: https://www.dotwallet.com/article/184)
- Incident 5: Plus token wallet "Exited Scam"
Since June 27th , 2019, the Plus Token wallet has been unable to withdraw cash. Users tried to contact the team but did not receive any response. Subsequently, according to the Daily Mail, the Vanuatu police arrested six people in the evening of Thursday (June 27th ) local time. The collapse of the project became an established fact.
- Incident 6: TRON Super Community collapsed
On June 30th, 2019, the official group of the TRON Super Community announced that it would optimize the community platform, but did not mention how long the maintenance would take. Subsequently, several TRON super community groups announced that the TRON community needed to be shut down for maintenance due to hacker attacks. By 10 o'clock on June 30th, the App could not be downloaded, and then investors realized that the official may have run away. Believing in the so-called high returns is also a major reason why investors fall into the trap of criminals. (For more details: https://www.dotwallet.com/article/88)
[ When the private key of users'funds are managed by centralized exchanges or custodial wallets, once these exchanges or wallets do evil subjectively, user funds will be easily misappropriated and possessed;]
The security issues of user assets are constantly emerging. The root cause is that the private key of user funds is in the hands of centralized exchanges and custodial wallet merchants, and users actually do not have control over their own funds.
Only when you have the private key of your own funds can you be considered as having control of your own funds!
Currently, wallets are divided into custodial wallets (also known as centralized wallets) and non-custodial wallets (also known as decentralized wallets) according to whether users own the private key of their funds. They are divided into hot wallet and cold wallet depending on whether they need to be connected; and divided into software wallet and hardware wallet depending on the form of the product;
Among them, the first category is the most important. Once the private key is mastered, the user can restore and control his own funds by importing the private key (or mnemonic) into other wallets, instead of relying on the destiny of the asset wallets or exchanges.
「Introduction of DotWallet」
As the earliest and largest BSV wallet with the largest number of users, DotWallet has always adhered to the user-centered approach and continuously optimized user experience and asset security. After numerous revisions, upgrades and amortizations, the features of convenience and security have long been deeply rooted in the hearts of the of DotWallet users. Currently, DotWallet supports the sending, receiving and storage of multiple digital currencies such as BSV, BTC, and ETH.
As a non- custodial wallet, DotWallet Web version and DotWallet Pro support mnemonic backup. All data on the server side is encrypted using the same elliptic curve algorithm as Bitcoin. Even if DotWallet server is hacked, it will never leak users’ data. The private key is held by the user who has full control over his own assets.
The newly launched DotWallet Pro is an App wallet adopting multiple security techniques that is safer and suitable for users with large-value storage needs.
For More details, please refer to:
DotWallet Web Version: https://www.ddpurse.com/
DotWallet Android APK: https://www.dotwallet.com/download
DotWallet ios TestFlight: https://testflight.apple.com/join/oPt2uoxp
DotWallet Official: https://www.dotwallet.com/
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