While self-storage is considered the ultimate way to secure one’s funds, many fail to recognize the risks associated with physical storage of seed phrases. A search by the State Police Agency for Nevada ended up releasing a suspect’s fingerprint after being picked up by the body camera.
A viral video on Twitter showed two police officers searching a suspect’s car and coming across pieces of paper. It turns out the suspect was a strong believer in self-preservation, as unfolding the slips of paper revealed the suspect’s seed sentence, which was handwritten – a popular method of preventing online compromise.
As the incident was captured by one of the officer’s body cameras, the suspect’s seeding has now become public information.
This video of Nevada police officers searching for a suspect and finding a seed pod is pretty wild. Imagine your seed sentence becoming part of the public record due to being caught on an officer’s body camera! pic.twitter.com/vS2vm0xh7N
— Jameson Lopp (@lopp) 18 December 2022
Binance CEO Changpeng ‘CZ’ Zhao watched the video and warned investors to learn the various risks involved in different methods of storing cryptocurrencies. He so:
“I am a supporter of free choice. Feel free to keep your crypto however you wish. But learn the risks of each method.”
The video sparked conversations about the best way to save seed sentences, with the most popular suggestion being to memorize the seed sentence. While the idea of memorizing the seed phrase – a unique combination of 12 or 24 words – sounds safe, CZ pointed out that lack of inheritance and the forgetfulness of the human mind are two of the biggest flaws in storing important information in the “brain wallet” .
Related: How to keep your cryptocurrency safe after the FTX collapse
The arrest of former FTX CEO Sam Bankman-Fried for alleged misappropriation of funds was seen as a signal to rethink long-term cryptocurrency holding strategies.
While an immediate reaction was to pull the funds out of crypto exchanges, CEOs came forward to assure the safety of investors’ funds regardless of where they intend to store their cryptocurrencies.
On the other side of the spectrum, Ray Youssef, CEO of crypto exchange Paxful, sided with the idea of Bitcoin (BTC) self-storage. He promised to send weekly reminders to all investors to move their money away from the exchange.
“My only responsibility is to help and serve you. That is why today I am sending messages to all of our people [Paxful] users to move your Bitcoin to self-storage. You shouldn’t keep your savings on Paxful, or any exchange, and just keep what you trade here,” he said.