A viral video on Twitter showed two police officers searching a suspect’s car and finding pieces of paper with the suspect’s handwritten seed phrase, a series of words used to secure cryptocurrency.
The incident, which was recorded on one of the officer’s body cameras, made the seed phrase public information and sparked discussions about the best ways to store seed phrases.
Some have suggested memorizing the seed phrase, but Binance CEO Changpeng Zhao pointed out that this method is vulnerable to the forgetfulness of the human mind and lack of inheritance.
The CEO of the crypto exchange Paxful, Ray Youssef, encouraged investors to move their funds to self-custody, stating that they should not keep their savings on an exchange but only what they trade there.
The arrest of former FTX CEO Sam Bankman-Fried for alleged misappropriation of funds also prompted investors to reconsider their long-term storage strategies for cryptocurrencies.