Is Your Bitcoin at Risk? Willy Woo Sounds the Alarm!

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Ah, Bitcoin. The digital currency that everyone loves to talk about, but apparently no one really knows how to keep safe. Enter Willy Woo, the self-proclaimed hero of the crypto world, waving his arms and shouting warnings about Strike’s updated terms of service. According to him, this isn’t just some minor update, no, it’s a full-on Bitcoin catastrophe waiting to happen. Strike, under the leadership of Jack Mallers, now allows your precious BTC to be handed off to third parties. And guess what? You won’t even know where it goes. What could possibly go wrong, right? 😱

Woo’s alarm comes at a time when the entire crypto world is trying to clean up its act after a series of spectacular failures. Think FTX, Genesis… yeah, those fun ones. Crypto platforms are under intense scrutiny, and Strike’s new terms just might add fuel to the fire.

What Exactly Are We Dealing With Here?

– re-hypothecation means sending customer collateral to another party in order to make money off it. Each time this happens the…

— Willy Woo (@woonomic) June 6, 2025

Woo drops the bombshell: Even though Strike can’t pass your BTC around like a hot potato, they still don’t tell you who’s getting your precious coins. A little transparency, anyone? Without knowing where your assets are going, the risk is off the charts. 🤷‍♂️

History, That Dreadful Teacher

Ah, yes. History. Woo brings up the great failures of 2022, where everyone’s favorite crypto firms collapsed faster than a house of cards in a tornado. Remember Gemini? They handed customer funds to Genesis, who then passed it off to Alameda Research. What happened next? Alameda used it for reckless trading, and the rest, as they say, is history—total financial carnage. 💥

Strike’s single re-hypothecation doesn’t seem as bad, but Woo is no fool. He warns that even one mishandled Bitcoin could lead to massive disaster, especially when the users have no clue where their assets are. But hey, no big deal, right? It’s just your life savings sitting in someone else’s hands. 🤔

Woo doesn’t mince words. If Strike decided to hand your BTC over to some shady operation like “Alameda 2.0,” they wouldn’t even need to inform you. Who needs transparency when you can live life on the edge? 🎢

But it’s not just about trust, it’s about safety. In traditional finance, your funds are with a trusted third party (like a bank). These institutions are heavily regulated and have to follow the rules. But in crypto? Not so much. Strike’s way of handling customer funds might as well be written in invisible ink.

Woo suggests a better system—something with multi-signature contracts that actually protects the customer. Seems simple, right? Well, not in the wild world of crypto. 😅

In conclusion, Woo is calling for a total overhaul of the industry’s custody models. The risks that Strike’s terms introduce are the same kind of risks that caused the infamous crypto collapses of yesteryear. Woo’s advice: Push for institutional-level custody standards. Your Bitcoin deserves better. 💪

While Strike has limited the re-hypothecation to just one, the total lack of visibility for users is a huge red flag. The crypto community can do better. It must.

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2025-06-06 13:27