- Peter Schiff attracted a lot of negative attention on Crypto Twitter yesterday after he lost access to his crypto wallet.
- Schiff claimed that the wallet stopped recognizing his password, and the community criticized the fact that he didn't back up his seed phrase.
- Schiff then found an unexpected ally in Vitalik Buterin, who took his side in the argument with claims that wallets could benefit from better security.
As many likely know, Peter Schiff recently made headlines after losing his BTC and blaming the wallet he used for it. He reported losing his funds yesterday, January 19th, stating that the money in question included his crypto life savings.
The claim caused quite a bit of backlash from the crypto community which accused him of negligence. Allegedly, Schiff forgot his wallet password and he failed to back up his seed phrase when he first made the wallet, which is one of the crucial precautions that every wallet owner needs to take.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Interestingly enough, he claims that the issue lies with the wallet, which stopped recognizing his password.
Vitalik Buterin joins in
However, in the middle of the Crypto Twitter’s backlash, he got an unexpected supporter — Ethereum’s Vitalik Buterin, himself. Buterin slammed those who criticized Schiff, stating that he is disappointed by the reactions and that crypto wallets could use better security with the possibility of social recovery.
Unfortunately, Buterin’s attempt to calm the situation did not go as expected, and many Bitcoin maximalists then started targeting him and Ethereum, claiming that the project is centralized. Blockstream’s CSO, Samson Mow, even said that Ethereum’s recovery tool is to call Buterin up.
Clearly, not everyone agrees with Ethereum’s proposed method of social recovery which Buterin offers as a solution or this kind of issue. Their argument is that the concept might endanger crypto users’ circle of friends, family, and other recovery contacts.