Despite the fact that self-custody is regarded as the best method of protecting one’s assets, many people are unaware of the dangers of physically keeping seed phrases. The seed phrase of a suspect was made public as a result of a search by the Nevada State Police agency that was made possible by the body camera.
Two police officers were seen checking a suspect’s car in a trending video on Twitter and finding scraps of paper. Unfolding the pieces of paper revealed the suspect’s seed phrase, which was handwritten — a common technique to prevent online compromises. It turns out the suspect was a strong advocate of self-custody.
The incident was captured on one of the officers’ body cameras, and as a result, the suspect’s seed word is now widely publicized. The most frequently mentioned advice in discussions about the best approach to remember seed phrases was to just memorize them.
Sam Bankman-Fried, the former CEO of FTX, was detained on suspicion of misusing money, which prompted some people to reevaluate their long-term cryptocurrency storage plans.
Crypto holders are free to store their coins as they please but they must recognise the risks associated with each method of storage and must make every effort to minimize the risks associated with their choice of storage methods.
On the other hand, Ray Youssef, the CEO of the cryptocurrency exchange Paxful, supported the notion of self-custody for Bitcoin (BTC). All investors will receive weekly reminders from him to withdraw their money from the exchange, he assured.
He claimed that helping and supporting cryptocurrency users was his only duty. Users of Paxful were particularly instructed by him to transfer their Bitcoin to their own custody. Instead of keeping their savings on Paxful or any other exchange, he advised them to keep only the amount they need to trade on the platform.