Binance Founder CZ warns against receiving assets through shared private keys an

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Quote from: Saint-loup on December 27, 2024, 04:57:32 PM

It avoids to use blockchain and for the transaction to become public, it also avoids to have to pay BTC transaction fees while theyr can be pretty high. So if the amounts are rather small, it's not always a bad idea, but the receiver has to spend funds or send them towards a private and safe address quickly. Otherwise the sender could take them back and no one will be able to say if he's the culprit or if a hacker made it.

There may be some positives to adopting this method, but learners must be sufficiently aware of the degree of risk and all the technical details available so that there is no unexpected disruption in the transaction.
On the other hand, I want to emphasize that this is a big risk that is generally not recommended; let us remember together what happened to Mixer CM, which seized the assets found in the seized servers. CM relied on the chip method for payment, which contained private keys to Bitcoin addresses with amounts of specific values, which the user obtained and then transferred to one of his own addresses. First, this method requires complete trust in CM because it has a copy of the chips. Second, when the servers were seized, we discovered that CM was lying about destroying the copies of the chips in its possession, and all the Bitcoin that the authorities found on those addresses were actually confiscated, causing many to lose assets estimated at more than 7 Bitcoin.

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Quote from: maydna on December 25, 2024, 05:01:01 AM

That is why having a crypto will be personal responsibility. We can't just trust other people even if that is our family because there still a chance that people will run away with the balance to other wallet and they are disappear.

When you make your investment personal, they will take proper care of it because most people will invest, and there are a lot of things that they don't take seriously, and sharing private keys with people is not good advice. and I know that there will be cases of people running with people's funds so it is better to keep your funds safe from predators like that because thieves are always playing smart.

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It is better we keep that wallet by ourselves and not share the private key to others. Those who want participates in the airdrop must use different wallet to receive the rewards because if something bad happen, they will not risk all of his balance on that wallet.

And I don't even believe in people holding my money for me when nothing is wrong with me, so it is better to take responsibility for your funds, and if eventually, you entrust it to someone's hand, there is a very good possibility that it might be stolen, so it is better to trust yourself alone to avoid unnecessary future occurrences that is the only way you can be safe.

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It avoids to use blockchain and for the transaction to become public, it also avoids to have to pay BTC transaction fees while theyr can be pretty high. So if the amounts are rather small, it's not always a bad idea, but the receiver has to spend funds or send them towards a private and safe address quickly. Otherwise the sender could take them back and no one will be able to say if he's the culprit or if a hacker made it.

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Quote from: GreatArkansas on December 25, 2024, 03:51:30 AM

Not unless the recipient is wise, where he/she can easily transfer it out immediately to another wallet. However, I believe scammers are wiser because for sure they will only put sa mall amount of assets inside that wallet so they will expect that recipient will use it like add more assets in the future.

Scammers always try to play smart; there are also some cases where someone can offer to send payment to someone instead of sending the payment directly to the person's address.

They can just give them a phrase or private key, which the fund is inside, which in such a case the best thing to do is to move the coin to another place and abandon the wallet, but some people forget about this and keep using the wallet, which is very risky, as the first user still has access to the wallet.

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Quote from: IceLincoln on December 23, 2024, 08:21:31 AM

Changpeng Zhao (CZ) former CEO of Binance has issued a warning and cautionary message to cryptocurrency holders emphasising on the dangers of accepting assets through private keys or hardware wallets given by others.
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Even those chasing airdrops it’s important and necessary to not use same wallets for your hodlings to paste in airdrops coz u might be unlucky and paste in a scam project and all your assets will be wiped Out.

LET’S TAKE THESE WARNINGS VERY SERIOUS.

That's really a good point to discuss because while making in-hand deals, it's important that the seller still does not own the pass keys, as it's his/her wallet so they definitely own the seed phrase, so basically they should just send the BTC to the buyer in his wallet, or they should move the funds to a wallet with more than one signature to make the tx but what's the point in that, as this method is for partners, not for a single person?

So, I don't really get how this can be achievable, as if I am not wrong, recently it was MSTR or I don't really remember the name of the firm that bought BTC as an in-hand deal directly bought their wallet. I mean only the big deal, like in billions and millions, should be done like this, especially when selling, so there would be no panic in the market, but this will also become complex if we talk more about it. But let's just keep it tight to airdrops alone and yes in order to get some airdrop giving your seed phrase is the most dumbest thing unless you created a new wallet with no balance on it.

Most of the newbies become prey to such scams because they don't know what a seed phrase is and what they can lose if they give it to anyone.

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Quote from: PX-Z on December 25, 2024, 10:08:39 AM

It's just weird, it's the same advice all over and over again ever since bitcoin was created yet there are still people who did just like that, for what purpose?. I was shock that even founders still do it (from CZ's tweet too) sending fund through private keys, when you can ask their wallet address for you to send.

Yes, I was also surprised not until I realised that there are always newbies to the industry. People who have been here for long might not have need for such basic advices but we shouldn't forget that there are absolute beginners which is the reason such basics advices shouldn't cease.
Infact, in general, the cryptocurrency industry is still relatively new and now that the bull season is on, a season many newbies greet the industry, such basic advices should also be encouraged. As I said earlier, when big names like CZ gives such advice, people will likely take them serious.

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Why does the OP sound like CZ has discovered something that we all have been oblivious of, lol, anybody who does not know that they should not use a wallet that another person has the keys to, shouldn't be using bitcoin, it has been said a million times in this forum.

That being said, hope you know CZ is happy when people store funds in binance, but we know that is a bad thing to do, so don't make it seem like CZ really cares about your funds. He once said 99% of people will lose their assets if they put it in a non-custodial wallet, amazing, lol.

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It's just weird, it's the same advice all over and over again ever since bitcoin was created yet there are still people who did just like that, for what purpose?. I was shock that even founders still do it (from CZ's tweet too) sending fund through private keys, when you can ask their wallet address for you to send.

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Quote from: maydna on December 25, 2024, 05:01:01 AM

That is why having a crypto will be personal responsibility. We can't just trust other people even if that is our family because there still a chance that people will run away with the balance to other wallet and they are disappear.

That's another thing, not the context of the story.
here's its context.

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Crypto owners risk losing everything by accepting assets via shared private keys or pre-configured wallets, warns Binance’s former CEO, CZ, emphasizing the danger of shared access.

This means that if someone gives you a wallet with a private key and asks you to deposit funds, you shouldn’t consider it truly yours because the private key didn’t originate from you. What you should do is immediately transfer your assets to a new wallet that you fully control to prevent any risk of getting hacked.

The same principle applies to hardware wallets that come preconfigured with a wallet. The supplier might have access to the private key, so you should take every precaution to protect your assets. Otherwise, all the years you’ve spent hodling could vanish in an instant.

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Quote from: GreatArkansas on December 25, 2024, 03:51:30 AM

Not unless the recipient is wise, where he/she can easily transfer it out immediately to another wallet. However, I believe scammers are wiser because for sure they will only put sa mall amount of assets inside that wallet so they will expect that recipient will use it like add more assets in the future.

Owning a wallet and securing its private key is as basic as it gets. Without taking the right precautions, we risk losing money. Maybe in the past, when scams were less frequent, it wasn’t as alarming, but now, with the number of scams increasing, it should already be clear that if we don’t originally own the key, the account is likely to be compromised. Honestly, we shouldn’t need someone like CZ to remind us of this, as it’s a fundamental step to securing our assets.

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That is why having a crypto will be personal responsibility. We can't just trust other people even if that is our family because there still a chance that people will run away with the balance to other wallet and they are disappear.

It is better we keep that wallet by ourselves and not share the private key to others. Those who want participates in the airdrop must use different wallet to receive the rewards because if something bad happen, they will not risk all of his balance on that wallet.

GreatArkansas

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Not unless the recipient is wise, where he/she can easily transfer it out immediately to another wallet. However, I believe scammers are wiser because for sure they will only put sa mall amount of assets inside that wallet so they will expect that recipient will use it like add more assets in the future.

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Quote from: IceLincoln on December 23, 2024, 08:21:31 AM

Even those chasing airdrops it’s important and necessary to not use same wallets for your hodlings to paste in airdrops coz u might be unlucky and paste in a scam project and all your assets will be wiped Out.

Well, let get this right thou... It's advisable not to use your main wallet for airdrops and or any promotional campaign but pasting your address deliberately or mistakenly will never make your asset disappear. The certain and possible ways you can lose your assets is by either sharing your private keys or click on phishing links granting them access to your funds or seed.

Quote from: hugeblack on December 25, 2024, 03:07:32 AM

Does this include trust wallets Roll Eyes

that give you seeds and cannot guarantee that those private keys are not recorded, and this extends to any closed source wallet.
Although CZ's advice is good, he is the last person to care about the notYourKeysNotYourCoins principle

He cares about Not Your Keys Not Your Coins and that's why he chooses to help people keep the keys rather than giving them access to their keys Grin

But I'm curious, how do people attempt to receive coins through private keys? What kind of mentality is that? Probably, the sender and the receiver lack basic knowledge of crypto.

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Does this include trust wallets Roll Eyes

that give you seeds and cannot guarantee that those private keys are not recorded, and this extends to any closed source wallet.
Although CZ's advice is good, he is the last person to care about the notYourKeysNotYourCoins principle

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Quote from: IceLincoln on December 23, 2024, 08:21:31 AM

Source: https://news.bitcoin.com/binance-founder-cz-warns-receiving-crypto-this-way-could-instantly-empty-your-wallet/

Nothing new, nothing impressive, Why in the hell would people do such a brain dead move, sharing wallet keys with each other? If they don't have money to buy a hardware wallet they probably shouldn't be investing in crypto in the first place. "Not your key, Not your coin" isn't it?

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Quote from: KingsDen on December 24, 2024, 05:01:03 PM

In this industry, we should just have many crusaders against scam. This is the reason I do not get offended no matter how often I see the advice on how to safeguard one's coin. Irrespective of the numerous advice is in the internet, people keep losing their assets on a daily basis. Does it mean that they do not read this advice and recommendations, no. Rather it means that the nature of the industry is that of scam. Everyone is vulnerable and if you are not conscious enough you will be the first to be scammed. Do not be surprised that in a decade to come, there will still be advice such as do not share your private key with anyone. Yet, people will still share private keys or connect them to third party apps.
Cool that big names like CZ are not tired of warning. Maybe people could listen.

I completely agree that it is essential to inform people about scams in crypto or even every industry. Even though there is a lot of advice and warnings available online people still lose their money to scams every day. This is not because they do not know about advice but because industry is naturally at risk for scams. Everyone is in danger and it is very important to be careful. It is good to see important people like CZ continuing to warn others about possible scams. Hopefully their efforts will work and people will become more careful and smart.

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In this industry, we should just have many crusaders against scam. This is the reason I do not get offended no matter how often I see the advice on how to safeguard one's coin. Irrespective of the numerous advice is in the internet, people keep losing their assets on a daily basis. Does it mean that they do not read this advice and recommendations, no. Rather it means that the nature of the industry is that of scam. Everyone is vulnerable and if you are not conscious enough you will be the first to be scammed. Do not be surprised that in a decade to come, there will still be advice such as do not share your private key with anyone. Yet, people will still share private keys or connect them to third party apps.
Cool that big names like CZ are not tired of warning. Maybe people could listen.

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Quote from: IceLincoln on December 23, 2024, 08:21:31 AM

This news got me surprised that at this age and time people are still getting involved in this method Coz one of the first things I learnt about Crypto when I first got onboard was to never share my private keys or seed phrases no matter the transactions.

It didn't come to me as a surprise because people do silly mistakes. Similarly, I think beneficiaries who inherited crypto through private keys should generate a new private key and transfer the funds, just to be safe.

Quote from: Aanuoluwatofunmi on December 24, 2024, 02:10:32 PM

This is what should be:

1. Don't use a centralized exchange because you wont have the privilege of being given your private keys.

2. Secondly, only make use of hardware wallet from a reliable brand as well as source while getting one.

I wont go with the idea of preferring a custodial wallet to a non custodial one, this is totally not right, we all need to have control over the digital assets we have, no one should get misinformed, we should only go for the best available option that can give us control over our crypto and in his statement, he is probably referring to some hardware wallets like ledger or so and not all the non custodial storages entirely.

You misunderstood it. The post is not about storing funds on CEXs or choosing hardware devices but a warning to people not to buy crypto through private as the seller still has the private keys and can play a fast one on the buyer by transferring the funds to a different wallet.

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Quote from: tabas on December 24, 2024, 01:44:28 PM

The scammers are doing this, in platforms like YouTube and other social media platforms. The scammers are playing victims that they are ignorant and shares the recovery words on it. And while the gullible victim might believe that they're for real, they're the actual targets of these scams. Little did they know, they're the ones that will be sucked with the money that they might deposit on these wallets for gas fees.

This is a type of scam that's very popular not only on YouTube but also on social media platforms like X, Meta, TG, and IG. They come online as if they don't know anything about crypto and need someone to help them out, and they willingly share their key with the person, which such a wallet always contains. Altcoin, which requires a gas fee before it can be sent out, is in most cases the wallet, which is always a signatory wallet that requires more than one signing to grant send-out permission. Once any tokens are deposited, they get moved out immediately to a designated address, which might be the work of a bot due to the speed they use.

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What is the difference between giving someone a private key or seed phrase and using the CEX platform that has the investor's private key and controls his assets? I think it is the same. The asset holder is supposed to be the sole controller of his assets without third parties interfering or sharing this important information with anyone. This advice after sharing the secret information is found as a warning to any user who has created a new wallet in one of the decentralized wallets or not taking a screenshot of his secret phrases because undoubtedly if it falls into someone's hands, he will be able to access the wallet and steal all the assets immediately.

Also, for those interested in airdrops, it is important and secure to use a new wallet without using their main wallet. This is an important precautionary because if the wallet is connected and the transaction is signed on a phishing site, the investor will lose all their assets. Therefore, any newcomer to this field should be aware of these basic principles.

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