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Binance CEO CZ highlights the importance of knowledge in self-custody wallets after concerns about vulnerabilities in Libbitcoin’s Bitcoin Explorer.

Fireblocks uncovers BitForge vulnerabilities in major wallet providers, prompting proactive disclosure and action.

CZ acknowledges the presence of a vulnerability in Binance’s TSS Library.

In a recent Twitter exchange, Binance CEO Changpeng Zhao, popularly known as CZ, weighed in on the security risks associated with self-custody wallets while reiterating his support for the concept under one crucial condition: users need to understand what they are doing.

CZ’s tweet was prompted by concerns raised by technical writer David A. Harding, who warned users about potential vulnerabilities in wallets generated using Libbitcoin’s Bitcoin Explorer, particularly as described in the appendix to the book “Mastering Bitcoin.”

This vulnerability is due to the random number generator using a 32 bit seed, which is not sufficiently random against modern cracking such as GPUs. @Trustwallet and @Binance wallets do not use this for seed phrase generation. 🙏 — CZ 🔶 Binance (@cz_binance) August 11, 2023

CZ’s response showcases his stance on self-custody, emphasizing the importance of knowledge and preparedness. While self-custody can offer users greater control over their assets, it’s essential to acknowledge the associated risks.

This issue was present in the TSS Library Binance open-sourced, which has been fixed. Thanks to Fireblocks for uncovering it!

No @Binance user funds affected.

Even MPC custody solutions have risks. Stay #SAFU! 🙏 https://t.co/UneRs7VOj7 — CZ 🔶 Binance (@cz_binance) August 10, 2023

In another response to Fireblocks’ report exposing vulnerabilities in the security of 15 major wallet providers, CZ has acknowledged the issue, particularly highlighting that the vulnerability was present in the TSS (Threshold Signature Scheme) Library that Binance had previously open-sourced.

CZ expressed gratitude to Fireblocks for bringing the matter to light and reassured Binance users that their funds remained unaffected. This incident underscores the ongoing importance of maintaining strong security measures, even in widely adopted custody solutions.

Fireblocks, renowned for its research in the crypto security space, revealed the discovery of a set of vulnerabilities named “BitForge.” These vulnerabilities, found in certain MPC (Multi-Party Computation) protocols, could potentially allow an attacker to access a private key from a single device, posing a significant security risk to digital asset wallet providers.

In a proactive and responsible move, Fireblocks conducted a responsible disclosure process, informing more than 15 digital asset wallet providers and projects about the discovered vulnerabilities.

While Binance’s TSS Library vulnerability has been fixed, the incident serves as a reminder that even sophisticated custody solutions can face vulnerabilities.