While self-custody is repeatedly touted to be the ultimate safeguard to preserve digital (crypto) assets, users must still exercise caution. Seed phrases’ physical preservations at times could get inadvertently exposed.
Here’s how. While Nevada cops were doing their regular duty, they ended-up unknowingly making public the crypto wallet seed phrase of a suspect.
On a regular search by the Nevada State Police agency, a body camera was used for the same as usual.
The two Nevada cops were shown in a Twitter video reviewing the car of a suspect. The cops started going through the papers they found in the car.
One of the papers they accessed ended-up revealing the handwritten crypto wallet seed phrase of the suspect in the bodycam video footage. The cryptocurrency community generally preserves their crypto wallet seed phrase via handwritten notes to avoid online hacks.
The suspect in question tended to follow the self-custody route to safeguard cryptocurrencies.
Sharing the video, Jameson Lopp, Co-founder, CasaHODL, tweeted:
This video of cops in Nevada searching 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
After the infamous FTX scam defrauding investors for millions of dollars, the cryptocurrency storage strategy of the community is being reviewed.
Crypto investors can choose to store their crypto as they please. But due caution must be exercised when selecting either of the storage routes.
Paxful CEO, Ray Youssef, recently voiced his self-custody preference for storing cryptocurrencies. He revealed that Paxful will be sending reminders to its users on a weekly basis to store their crypto in self-custody.
He advised Paxful users to keep on the exchange only that amount of crypto which they would require to trade. The remaining crypto assets should be kept in self-custody.
But Youssef assured that users’ funds would be safe and secured on Paxful.
