Funds safety?The cold storage system was upgraded from Trezor to Ledger some time ago. The Ledger is an HD wallet so uses different change addresses each time so it is much more complex to show proof of funds.
3LaNNTg87XjTtXAqs55WV5DyWASEZizCXZ is one of our hot wallets we use for payouts. The other is
329koRvovTyNnd4ADrpR2uJHzXxfvKxta5.
When you deposit to us we sweep funds greater than 0.00050000 to
1Fu3iBR2EMQWeYGi3XvrPmcPUkne8ZWj9hThere is currently 229 BTC of dust deposits that haven't been swept.
That address then either funds the 2 payout hot wallets or sends it to cold storage at
3CZM2Y6AqieFZE1RAbvXYi7hExx1zSb5R1 It is when that wallet is used to fund the hot wallets that the change addresses are used. (eg.
https://btc.com/35e79400c98284bf52ea791dbefb6efe38b6d32d7353eab2a239a7ff7b2c17fe)
When we remove the proof of mining information we'll replace it with a new proof of funds address. Because the funds are spread of so many addresses we'll have to move all the coins to a single address to sign a message from. Then we'll repeat that process every 6 months to show we still have it. We should be able to get that information up at the beginning of next month.
I am once again checking the safety of my coins and as I hold quite a large sum of money on Freebitcoin.
Unfortunately I must lament that they seem to provide very little info about the safety of the deposited funds and/or the state of their solvency. I have compile a list of good and bad things about Freebitcoin that are of concern from the safety standpoint. If it's not already clear, I am judging their trustworthiness more from the point of view as the website being a "BTC savings account with a casino attached" rather than the opposite.
The bad:- The addresses quoted above are now empty, I haven't seen any other proof of address posted anywhere
- For quite some time now (at least ~October 2023) the STATS page of the website is broken and doesn't show anymore the active users/funds held by freebitcoin nor the amount of BTC bet/won. I seem to remember that they used to also provide the last website deposits and payments that they sent, are those features broken too?
- Somehow (thankfully) they are still avoiding KYC regulations tightening all around the world, which probably makes them completely invulnerable in case something bad were to happen to the funds!
- The whole FUN endeavour seems to have been quite a flop and development has stalled (I know FUN and fb aren't the same thing, but they seem heavily involved/exposed)
- The website on the EARN BTC page still says that they are using Trezor rather than Ledger as in the first sentence of the quoted text above (it's a nitpick, yes, but if that is wrong, what else is?)
- The site seems to still be run by only two fully anonymous people (wetsuit and TheQuin)
- Except some recent outliers the weekly lottery tickets numbers seem to have been steadily decreasing, is it sign of a diminishing user base?
- Despite the bust of most other crypto interest-earning websites, they still offer a very solid 4.08% on the deposited BTC, which is upgradable through Premium to 5.1% for what is now very little money, compared to when FUN first launched: around 2.5k$ (it was around 15k$ when Freebitcoin+FUN was announced). Are they losing money on the Premium program? Can they afford it?
The good: - It seems like that most things are automated
- They seem to operate directly in BTC (thus avoiding volatility of BTC vs fiat)
- They have good house margins and good betting mechanisms
- Only two people (wetsuit and TheQuin) seem to have access to the funds, which makes them more strong against internal theft
- They have been around for a long time
I still mostly trust Freebitcoin only because of these reasons, but being more transparent about how the funds are managed should be a priority given the anonymity and likely complete legal immunity that they have managed to keep.
In case any info here is wrong/outdated, please point it out to me.
So, now I ask:
where are the BTC? What are the addresses of the hot and cold wallets? Can we get the website STATS page fixed? Can we get the promised (in 2021) proof of funds address updated every 6 month on the website?
A slightly concerned anonymous user.