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ZixiPay: Tether Wallet

Latest release: 1.80 ( 6th October 2022 ) 🔍 Last analysed 17th November 2021 . Custodial: The provider holds the keys
4.2 ★★★★★
5 ratings
22nd December 2019

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

Zixipay is a multi-currency wallet that supports Bitcoin and many other cryptocurrencies.

Termination Clauses in the User Agreement

Section 6, paragraphs 16, 17, and 18 focuses on account suspension and termination

ZixiPay reserves the right to cancel, terminate, modify or suspend the Services if for any reason, the Services cannot be conducted as planned, including, but not limited to, infection by computer virus, bugs, tampering or unauthorized intervention, fraud, technical failures or any other causes beyond the control of ZixiPay; ZixiPay is entitled to take any action it, at its sole discretion, decides to take in order to counter any such circumstances.

ZixiPay reserves the right to limit, refuse or cancel any act by You or through Your Account (regardless of whether such cancellation was due to actions on Your part or of any third party), where ZixiPay believes that any act of fraud or any other act of bad faith has been taken against ZixiPay or any third party.

ZixiPay shall be entitled, at its sole discretion, to amend, modify, or discontinue, from time to time, any of the Services and/or introduce new Services. ZixiPay shall not be liable for any loss suffered by You resulting from any changes made and You shall have no claims against ZixiPay in such regard.

The App

We were not able to find an option in the app that allows users to view or backup the mnemonics.

Verdict

Without the private keys or mnemonics, this service can only be custodial. Moreover, a termination clause that has the power to cancel or refuse “any act” by the user means they have the power to control the user’s funds. 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.