Changin Zhao, CEO of Binance Cryptocurrency Exchange, commented on the incident, as a result of which Peter Schiff, CEO of Euro Pacific Capital, lost access to his mobile bitcoin wallet.
Many hardcore crypto ogs advocate storing your own keys. But the truth is, today most people are not able to secure a key even from themselves (losing it). A trusted centralized exchange is #SAFUer for most people. The numbers speak for themselves.
Need to work on wallets. https://t.co/bsX3Ea5WCD
– CZ Binance (@cz_binance) January 19, 2020
According to Zhao, centralized exchanges are the best way to store cryptocurrency. In particular, he cited the example of Binance, which through the SAFU fund provides insurance of client funds.
However, the words CZ were met with a degree of skepticism – many remembered the repeated episodes of the site hacking.
This is a really Bad take.
Specially because Binance have been hacked in the past.
Remember the roll up, @cz_binance
– Javier Bastardo ?☠️ (@criptobastardo) January 19, 2020
In turn, Ethereum co-founder Vitalik Buterin said that part of the responsibility for the safe storage of funds lies with wallet developers.
Disappointed at people replying to this with “crypto is what it is, it’s your job to be super-careful and write down backup seeds in three places.” We can and should create better wallet tech to make security easier.
Eg. here’s a social recovery ERC WIP: https://t.co/tuSbHhXKgd https://t.co/hCBAJKbK41
– vitalik.eth (@VitalikButerin) January 20, 2020
“We can and should create more effective technologies for wallets in order to simplify access to secure storage of funds,” Buterin wrote.
As a solution to the problem, he proposed to distribute parts of the key between proxies.
Recall that Peter Schiff’s wallet was compromised on January 19 – the password for the wallet was invalid. The reasons for the incident are unclear.
Later, ShapeShift cryptocurrency platform CEO Eric Vorhes said that it was he who helped Schiff create a mobile wallet in 2018. He emphasized that Peter Schiff did not write down the password or passphrase.
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