Topic: Binance Founder CZ warns against receiving assets through shared private keys an - page 2. (Read 389 times)

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.

I think this one should be a basis for any bitcoiner. You must always use your keys!
Regarding hardware wallets, in some cases you can prove these are original. I know, not everybody could like it, but hardware wallets are just fancy items for new coiners and nothing to be used by serious bitcoiners. Enjoy a free read and why not the best instructions for keys generation
glacierprotocol.org

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.

Seem an obvious warning but somehow people the not savvy ones fall for this trick.
If you are aware of the security of the asset when given to you or sent by you, you would recommend having a new wallet. Having a new one with the private key of course is better.

If I have to give coins to someone, I would rather send them to his exchange wallet especially if the guy is new to cryptocurrency. This way I can recommend sending it to his private wallet or keeping it on the exchange until he knows how to secure it.

I believe you got it wrong.

He is warning that we should not hold on to Private Keys we have received from others because the initial owner can still access it.  So instead of holding on to Private Keys, the receivers should move the Funds and empty it before disposing of it.  But I think he worded it pretty badly.

If your friend hands you a piece of paper with a Private Key on it, it does not mean they are Scamming you.  But to avoid problems in the future, it is wise to wipe it to your own Wallet instead.  The title of this warning sounds as if anybody who gives you a Private Key is trying to Scam you.

He has given important warning to people who have cryptocurrency. He is right to say it is very risky to accept cryptocurrency from someone else private keys or wallets. This can lead to losing your money or having your security compromised. By the way it is still surprising that many people still do not know about these risks. To stay safe keep in mind that never share your private keys or seed phrases and do not accept assets from pre set wallets and use separate wallets for different activities. So we should take this warning seriously and should protect our assets.

Sure one can,  but the question remains whether he will smart enough to  do it or proceed to  use it and  will top the relevant address up.

There are still plenty of novices who have no idea on how important to rely solely on private keys generated personally and keep them hidden from outsiders.

Regarding HW, they may be be infiltrated with modified firmware so that  their resetting will  do nothing, ^{if that firmware is sophisticated to the high extend even attempt of reflashing may not help.}

 This is really a big issue and for CZ to give such a warning, it means people are not taking these things too seriously. We've heard of so many people losing all their funds because they were careless with their keys and now that we are in the festive period, scammers are getting desperate and even individuals who you feel can be trusted aren't really trustworthy.

Yeah, but it's going to be cycle, a vicious one in the market as there could be cryptoiners who don't understand the concept of not your keys not your coins. And we really don't trust anyone here, but we need to verify everything. And cyber criminals will stay here no matter what and so the lesson to all of us is to really educate ourselves and be self-aware of what is happening in the world that we live in. There could be another modus that this scammers are going to developed in the future, maybe old and recycled, but I do think that they will find another way to pull another new and unfamiliar scams.

Never share a private key or seed  with someone, that's bad it just like sharing same wallet and anyone can do what they like with each other's funds, so it's not typically yours nor his but anyone can spend anytime they want ..

Hence, if it's not your private key or seed  and you made  use of the address (provided by the private key or seed )then it's not your coin ( simple) until you move it to your wallet address which has it own private key..
Multisig is another option ( probably a 2of3),If you need to share wallet with someone.. and remember not your key not your coin so exchange is  a good example  of sharing your privatekey (indirectly, it'snot like you have a private key either  ), the exchange owns your coin so far it's still on it .

I used to buy loaded coins in the past, but over time, I realized I should move the coins to an address where I have sole control. It only hit me after years, but thankfully, the supplier wasn’t a thief, and my balance was still intact. You know how it is, when I was new, I was so curious and excited to explore everything. Owning a physical coin with a loaded balance was just part of that exploration.

By the way, thanks for sharing! I think I’ve seen that thread before.

I don't see this to be such a big problem, especially coming from someone who created centralized exchange that already shares private keys with all of it's customers. 
If you receive private keys from someone you can always move coins to different address that in unrelated with those keys.
For hardware wallets you can do the same thing, and you can also reset the device after doing that.

It's your private keys, it's your coins, but do any generous person needs to give you private key?

Honestly, if the giveaway, airdrop is legit, it is simple to give it away by sending coins to giveaway hunters with no or simple tasks.

If it is required steps for you to receive it in private keys in files, hardware wallets, there are threats that can infect your devices, and steal your coins on it.

Hardware wallets even if you buy them, you need to buy them a right way. Now its giveaway hardware wallets, do you see potential threats?
[GUIDE] How to buy a Hardware Wallet the right way

Fortunately my skepticism level is really high, whenever I don't feel right or safe, I would force the other party to do what I want, if not I will refuse to make a deal.

What was your reason to bought a physical coin loaded with balance? do you want to buy the collectible or the balance? people who interested with collectible should just bought the coin. There was a case where a trusted member in this forum steal people's money, he sold collectible with loaded balance.

Sharing your seed phrase with others has never been a good act for holders and not even advisable to be exhibited with people we called out loved ones because when the repercussions strikes on our wallets, it could be untraceable when the fund is sent on the self custodial wallets where KYC are not needed during creating the wallet account.
Then everyone becomes suspect to you even th innocent ones will you become enemies of being responsible for your lost.
The clear advice is that let your private keys being your seed phrase remains your secret to you because there're more malwares to fight against and more varieties of conciousness to be abided. All race is to keep your foods secure so trusting your seed phrase to anyone has potential to the lost of your funds.
The warning was a genuine one.

"Not your keys, not your assets" pretty much sums it up perfectly. Knowing this should already encourage crypto holders to move their coins to wallets where only they control the private keys. It’s similar to trusting your coins to an exchange, you might see your balance there, but since you don’t hold the keys, you don’t have full control.

What OP mentioned is even riskier as someone knowing your private key. In that case, your assets are always at risk of being hacked since they have access to your funds. I remember a time in the past when I bought a physical crypto coin loaded with actual balance. It had the address and private key attached to it. Luckily, the amount wasn’t transferred or tampered with, and I managed to sell it safely after three years.

Yeah same me too, even with your trusted friend you dont share it cause that friend might change his motive as your friend and aim your asset. I think as long as you live youll need to be careful about private keys.

A newbie should remember that up to now cause the crypto space is full of dangerous thoughts when it comes to money.

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.

In his words; “Recently, I have seen several instances where people receive crypto by receiving a private key or a hardware wallet. This is a bad idea”.
He went on and on about all the disadvantages and dangers that can result from sharing private keys and seed phrases.

He stressed and adviced ; “The giver still has access to those crypto. You should move the crypto to an address you own. Or better, just ask the giver to send it to an address you own,”
He also said;
“Having two people access the same key (or seed) is a bad idea. When those crypto move (or by a hacker), it’s almost impossible to prove who moved it (or got hacked)”.

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

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.
And for CZ to come out to put a warning, a whole lot of people are doing it.

For the Newbies and others who still doing it. Let this SINK IN!
NEVER SHARE YOUR PRIVATE KEYS/SEEDPHRASES OR RECEIVE ASSESTS THROUGH PRE CONFIGURED WALLETS. It always Ends BADLY.

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.