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후오비 코리아 - 가상자산 거래소(비트코인, 이더리움)

Latest release: 3.8.2 ( 31st October 2022 ) 🔍 Last analysed 27th August 2021 . Custodial: The provider holds the keys
3.1 ★★★★★
3505 ratings
100 thousand
12th April 2018

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Help spread awareness for build reproducibility

Please help us spread the word discussing the risks of centralized custodians with 후오비 코리아 - 가상자산 거래소(비트코인, 이더리움)  via their Twitter!

Do your own research!

Try out searching for "lost bitcoins", "stole my money" or "scammers" together with the wallet's name, even if you think the wallet is generally trustworthy. For all the bigger wallets you will find accusations. Make sure you understand why they were made and if you are comfortable with the provider's reaction.

If you find something we should include, you can create an issue or edit this analysis yourself and create a merge request for your changes.

The Analysis 

Note: It’s a Korean app and may not have an English translation. To add to that, there seems to be two official websites: huobiwallet.com and hb.co.kr

Trade virtual assets in the safest way on Huobi Korea, selected by 3 million investors worldwide with the highest level of security!

Sounds like a trading platform.

The official website has a tutorial on withdrawing crypto.

Withdrawal Review Process:

  1. When users withdraw coins to a new address, the system may trigger ID verification checks. Under this circumstance, he withdrawal will only be allowed post verification. AVerification failure will lead to manual review.
  2. Where the destination address has already passed verification, the withdrawal may take place with or without manual review, subject transaction risk level. If the system detects abnormality in the account, the withdrawal will be subject to manual review.
  3. Customer support staff will perform account review via various channels, including but not limited to telephone or video call with you to verify your ID.
  4. Do not tell your password, SMS codes or Google Authenticator codes to anyone.

Due to the required verification, we assume this app is custodial and thus not verifiable.

(dg)

Verdict Explained

As the provider of this product holds the keys, verifiability of the product is not relevant to the security of the funds!

As part of our Methodology, we ask:

Custodial!

Is the product self-custodial?

If the answer is "no", we mark it as "Custodial: The provider holds the keys".

A custodial service is a service where the funds are held by a third party like the provider. The custodial service can at any point steal all the funds of all the users at their discretion. Our investigations stop there.

Some services might claim their setup is super secure, that they don’t actually have access to the funds, or that the access is shared between multiple parties. For our evaluation of it being a wallet, these details are irrelevant. They might be a trustworthy Bitcoin bank and they might be a better fit for certain users than being your own bank but our investigation still stops there as we are only interested in wallets.

Products that claim to be non-custodial but feature custodial accounts without very clearly marking those as custodial are also considered “custodial” as a whole to avoid misguiding users that follow our assessment.

This verdict means that the provider might or might not publish source code and maybe it is even possible to reproduce the build from the source code but as it is custodial, the provider already has control over the funds, so it is not a wallet where you would be in exclusive control of your funds.

We have to acknowledge that a huge majority of Bitcoiners are currently using custodial Bitcoin banks. If you do, please:

  • Do your own research if the provider is trust-worthy!
  • Check if you know at least enough about them so you can sue them when you have to!
  • Check if the provider is under a jurisdiction that will allow them to release your funds when you need them?
  • Check if the provider is taking security measures proportional to the amount of funds secured? If they have a million users and don’t use cold storage, that hot wallet is a million times more valuable for hackers to attack. A million times more effort will be taken by hackers to infiltrate their security systems.
The product cannot be independently verified. If the provider puts your funds at risk on purpose or by accident, you will probably not know about the issue before people start losing money. If the provider is more criminally inclined he might have collected all the backups of all the wallets, ready to be emptied at the press of a button. The product might have a formidable track record but out of distress or change in management turns out to be evil from some point on, with nobody outside ever knowing before it is too late.