Changpeng Zhao (CZ), the founder and former CEO of the Binance exchange, issued a warning about the risks of accepting digital currency via shared private keys or hardware wallets provided by others. Zhao emphasized that if another person has access to the private key or wallet recovery phrase, it could lead to loss of assets. He recommended that recipients of digital currency should transfer the assets to their personal wallets or ask the sender to directly transfer to an address under their control. Zhao, who resigned as CEO of Binance in November 2023 after admitting to federal crimes in the United States and serving some time in prison, stated that if two people have access to a key or recovery phrase, proving who transferred the assets or if it was hacked is nearly impossible, resulting in the assets being lost forever.
