While self-custody is considered the ideal way to secure one’s finances, many fail to recognize the risks associated with the physical storage of raw statements. A search by the Nevada State Police Agency ended up making the suspect’s initial statement public after it was caught on a body camera.

A viral video clip on Twitter showed two police officers searching a suspect’s car and coming across pieces of paper. It turned out that the suspect was a strong believer in self-confinement as revealing pieces of paper revealed the suspect’s initial phrase, which was handwritten – a common method for preventing online settlements.

The Nevada State Police’s camera records the suspect’s seed phrase. Source: Twitter
When the incident was recorded by one of the officer’s body cameras, the suspect’s initial statement is now public information.

Binance CEO Changpeng “CZ” Zhao watched the video and warned investors to be aware of the different risks involved in different ways of storing cryptocurrencies. He said:

“I am an advocate of free choice. Feel free to hold your cryptocurrency anyway. But learn the risks of each method.”
The video sparked conversations about the best way to store the seed phrases, with the most popular suggestion being to save the seed phrase. While the idea of learning an initial phrase—a unique combination of 12 or 24 words—by heart seems safe, CZ pointed out that the lack of inheritance and forgetfulness of the human brain are two of the biggest drawbacks when it comes to storing important information on the “brain wallet.”

Related: How to keep your cryptocurrency safe after the FTX crash

The arrest of former FTX CEO Sam Bankman Fried for alleged misappropriation of funds was seen as a signal to rethink long-term storage strategies for cryptocurrencies.

While the immediate reaction was to withdraw funds from cryptocurrency exchanges, CEOs have stepped forward to reassure fund investors no matter where they intend to store their cryptocurrency.

On the other side of the spectrum, Ray Youssef, CEO of cryptocurrency exchange Paxful, sided with the idea of Bitcoin.

pointers down

self-incubation. He promised to send weekly reminders to all investors to move their money away from the exchange.

“My sole responsibility is to help and serve you. This is why today I am sending messages to all [Paxful] users to transfer your bitcoins into self-custody. You should not keep your savings on Paxful, or any exchange, and only keep what you trade here.