Another day in the Blockchain space and another drama ready and waiting to pop off. Custodial services are a part of the ecosystem and every so often they show why they need to be put to bed for good. 

We really do need better decentralised options but these are still well off into the future so in the meantime get your popcorn ready because these dramas will surface every now and then.

It's also a good reminder to clear your exchange balances and hold your funds in cold storage.

## How many more times do I have to repeat myself?

I've said this before a couple of times, but when your business starts to focus on onboarding as many shitcoins as it can to drive up trading volume and users, you start to sacrifice security and operational integrity. 

If we have a look at all exchanges that have cocked up in some way shape or form, its always been shitcoin casinos, and bitcoin only companies have focused on privacy, compliance, and security.

Now I am not advocating for custodial services, but if I were to use any of them I would opt for one with a good track record.  

## On the record

Speaking of records BlockFi continues to taint there, about a month ago I spoke about BlockFi having to [fork over $100 million in fines](hive-167922/@chekohler/blockfi-burned-with-usd100-million-fine). So you'd think after that they would be focused on keeping themselves out of the press and drama-free, but that was short-lived.

![blockfidataleak.png](https://images.hive.blog/DQmfKBMC6K369hFemGy3QkfuHW9UhzMNW94tX4YbSpesbpS/blockfi-data-leak.png)

BlockFi uses a service called HubSpot a popular CRM tool for marketing and managing customer touchpoints such as ticketing and remarketing. So yes these companies are porting your data to 3rd party services and cloud storage services so it means that one or other copy of that data is vulnerable and people can gain access to it.

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Regarding recent third-party data incident: <a href="https://t.co/50z7IrQ1za">pic.twitter.com/50z7IrQ1za</a></p>&mdash; BlockFi (@BlockFi) <a href="https://twitter.com/BlockFi/status/1504982848771608586?ref_src=twsrc%5Etfw">March 19, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

## If they can't protect your data why would they protect your funds

Bitcoin is data, just like any other, sure it has real-world value and an open market but it is still data. If companies cannot keep your data safe due to their diligence and commitment to security, it doesn't fill me with a lot of hope that they are extra careful with your funds either.

## Issues could lead to tissues

If these issues haven't gotten you to [Delete your BlockFI Account](https://thebitcoinmanual.com/articles/delete-blockfi-account/), then I guess you'll probably wait till they lose your money. Since their track record has not been the greatest, I have gotten out. We saw this will Quadriga CX and other exchanges that went bust, they showed signs of weakness before blowing up. 

I've long since deleted my BlockFi account and would not consider going back anytime soon.

## Have your say

What do you good people of HIVE think? 

So have at it my Jessies! If you don't have something to comment, "I am a Jessie."

## Let's connect

If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler  and subscribe to my [fanbase](https://hive.vote/dash.php?i=2&fan=chekohler)


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