The Taihuttu Family’s Evolving Security Measures
The Taihuttu family, famously dubbed the ‘Bitcoin Family’, has significantly transformed its security measures due to a surge in cryptocurrency-related abductions worldwide. In an interview with CNBC’s MacKenzie Sigalos, family member Didi Taihuttu explained their updated strategy, which involves moving away from traditional hardware wallets to a more sophisticated, geographically diversified security model.
New Security Strategy
This new approach involves splitting and encrypting their cryptocurrency seed phrases, storing them across four different continents. To ensure maximum safety, they have engraved recovery phrases onto fire-resistant steel plates and hidden them in carefully selected locations around the world.
The motivation for these changes stems from an alarming increase in kidnappings targeting individuals known to hold cryptocurrencies. Taihuttu noted,
“We’ve gained some recognition in a unique market, but that market is rapidly expanding.”
This implies that the risks associated with holding significant crypto assets have also escalated. He further added,
“More and more robberies are likely to occur, which is why we’ve decided to avoid places like France.”
Previous Security Measures
This isn’t the first occasion the Taihuttu family has discussed their methods for securing their digital wealth. Previously, in August 2021, Taihuttu disclosed that 74% of their assets were stored in cold wallets, distributed in various locations. Now, however, he revealed a complete abandonment of hardware wallets, stating,
“We’re now completely hardware wallet-less. We don’t use any hardware wallets anymore.”
Currently, about 65% of their cryptocurrency investments are held in cold storage and are well-concealed. The family is also exploring the use of multi-party computation (MPC) technology to bolster their security even further.
Trading Practices
Additionally, Taihuttu pointed out that they now primarily utilize decentralized exchanges for trading, with centralized platforms playing a minor role, as approximately 80% of their transactions occur through decentralized exchange (DEX) systems.
