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How are my cryptocurrencies stored with Safello?
How are my cryptocurrencies stored with Safello?
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Written by Safello
Updated over a week ago

To keep your cryptocurrencies safe, Safello uses a warm wallet for storage with Fireblocks’ MPC-based wallet infrastructure. MPC, or “multi-party computation”, is a cryptographic technology that removes a single point of failure as MPC breaks up private keys into parts and distributes them between various entities to execute a transaction. Safello’s management, board members, or employees do not hold any keys and are not able to recover keys. Please see information about Proof of Reserves here.

The cryptocurrencies in your Safello Wallet are assets held by Safello for your benefit on a custodial basis. This implies that the ownership of the cryptocurrencies in your Safello Wallet at all times shall remain with you. It should be noted that the deposited cryptocurrencies are not encompassed by the deposit guarantee (Sw. insättningsgarantin) or the investor protection (Sw. investerarskyddet).

Customer cryptocurrencies are accounted for separately in Safello’s warm wallet (Safello Vault) which means that they are not intermingled with Safello’s assets. This implies, according to the assessment provided by external legal expertise, that in the event that Safello becomes bankrupt, you as a customer would have a so-called separation right in bankruptcy (Sw. separationsrätt vid konkurs), which implies a right to retrieve your cryptocurrencies stored in the Safello Vault from the bankruptcy estate.

If your cryptocurrencies would not be possible to retrieve with separation right due to the fact that they were being transferred when the bankruptcy occurred and it is not possible to establish to whom such cryptocurrencies belong to afterwards, you are at risk of losing such cryptocurrencies.

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