Payy said the seed phrase in the claims form is used only to verify the USDC balance
BIBIBI
AT A GLANCE
Payy said that collecting seed phrases in the claims form is only to verify the USDC balance and will not be used to control assets.
Article
Payy responds to the seed phrase controversy: it will not be used to control assets, only for verification USDC Balance
PANews October 13 According to news, in response to security concerns arising from users submitting seed phrases in the claim form, Payy said that the seed phrase in this process is used only to verify the user's wallet balance and will not be used to control assets. Because it uses ZK a privacy architecture, only the user can know the wallet balance through the seed phrase or private key, and the platform cannot confirm the amount of USDC held by the user without the seed phrase. Therefore, it requires users to provide identity information (ID) and relevant verification information to reduce the risk of fraudulent claims. Payy said that because the Aztec zero-knowledge proof (ZK) framework has known and potential vulnerabilities, it cannot rely entirely on the ZK proofs submitted by users' wallets to verify balances; otherwise, this could lead to false claims. Users' Payy seed phrases were previously used only for Payy Wallet. Because funds on the Payy blockchain...
Key points
01
PANews reported that users' submission of seed phrases in the claim form raised security concerns.
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Payy said that the seed phrase in this process is used only to confirm the user's wallet balance and will not be used to control assets.
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Payy said that it uses a ZK privacy architecture, and that the platform cannot confirm the amount of USDC held by the user without the seed phrase.
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Payy said that requiring users to provide identity and relevant verification information is intended to reduce the risk of fraudulent claims.
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Payy said that the Aztec zero-knowledge proof framework has known and potential vulnerabilities, and therefore the platform cannot rely entirely on the ZK proofs submitted by users' wallets to verify balances.
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The original text states that users' Payy seed phrases were previously used only for Payy Wallet.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Payy's claim is that because wallet balances are protected by zero-knowledge privacy mechanisms, the platform cannot directly see how much USDC users hold, and therefore requires seed phrases and identity verification information during the claims process. However, a seed phrase is a highly sensitive wallet credential, and the original text provides no technical evidence proving that it is used only to query balances.
Why it matters to readers
The claims process requires submitting a seed phrase, directly implicating wallet credentials, asset security, and users' trust in the platform. Even if the platform states that it will not control assets, how the seed phrase is received, accessed, stored, and deleted remains a key issue.
Beginners should treat a seed phrase as the core secret of a wallet and should not judge whether submission is safe solely on the basis of the platform's statement. This article merely relays Payy's explanation and cannot prove that the process carries no risk.
Risks and unknowns
The main text is truncated, so the full course of events and all of Payy's explanations cannot be confirmed.
No independent technical verification was found proving that seed phrases cannot be used to control or transfer assets.
The original text does not explain the seed phrase's storage, access permissions, or deletion mechanisms.
The original text does not establish whether any user assets have already been transferred or any seed phrases leaked.
Related Developments
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The claims regarding vulnerabilities in the Aztec framework and the risk of fraudulent claims come from Payy; the original text provides no verification materials.
Related concepts
Seed phrase
An ordered sequence of words used to recover private keys. Never provide it to customer support or unfamiliar websites.
