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Flux Pay

Latest release: 2.9.94 ( 15th May 2022 ) 🔍 Last analysed 24th October 2021 . Custodial: The provider holds the keys
3.5 ★★★★★
41 ratings
15th October 2020

Jump to verdict 

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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 

(Analysis from Android review)

App Description

It is described as an app that sends and receives money in Africa.

Send and receive BTC, ETH, DASH, USDT, LTC, and many more across the world instantly.

The Site

Terms of Use

Termination/Suspension
In the event of any breach of this Terms of Use, Blueloop shall have the right to suspend or terminate all or a portion of the Services to you in our discretion, or restrict your access to the Platform. We reserve the right to revoke, terminate or suspend any privileges associated with accessing the Services for any reason (including regulatory instruction) or for no reason whatsoever. You agree that Blueloop shall not be liable to you or any third party for any termination or suspension of your access to the Platform.

FAQ

Can I buy and sell cryptocurrencies on Flux?
Due to CBN regulations, you can only send and receive cryptocurrencies on Flux

How do I fund my Flux account
You can fund your Flux wallet by making a bank transfer to the account number assigned to your Flux account which you can find when you click on “Add Money” on your Flux wallet dashboard.

The App

Usage of the app requires a BVN - Bank Verification Number and a Nigerian phone number. Users can send Naira via Flux user tag.

Verdict

We have not found any reference to private keys or seed phrases on Flux’s website. The inclusion of a bank account and the requirement to provide the Nigerian BVN also hints to this app’s custodial nature. The app cannot be verified.

(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.