[Answered] Is incognito safe from the situation that has happened with ftx and the like.

Sorry maybe stupid question but how secure is our funds on this platform does the incognito team/group have access to gamble with our funds like other platforms have done or is there a safeguard in place?

Whenever someone shields a coin (let’s use ETH for example) this ETH is sent to a smart contract and then pETH is minted on the Incognito blockchain. Once that same user wants to unshield their pETH is burned and the ETH is sent from the smart contract to their wallet.

Smart contracts are public and audited and they are as follows:


Would it be possible for tether or circle to freeze stable coin that have been traded for pCoin?

Yes, technically possible but this is the same for all of the crypto sector :slight_smile: That’s why the crypto people try to implement a trustless, decentralized stablecoin. UST was just one of the experiments.

so a thief could in this case exchange his loot and do damage to the incognito budget. Is there a legal protection that would require the release of funds?

One could consider removing import by Shield from its enterable coins, and allowing their use in incognito only by internal swap

Jarvis’ system is quite well designed I think to create stable coin

What assurance do we have that the ETH is not used/transferred in any way prior to the user unshielding it?
(Sorry for the newb question.)

The ETH smart contract can be reviewed by anyone. It has also been audited:

Contract code: https://etherscan.io/address/0x43D037A562099A4C2c95b1E2120cc43054450629#code

Audit: https://www.coinspect.com/incognito-audit/

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