Going Blue – An important step in bankroll security

As we at CryptoGames have previously paid out both Bitcoin and Ethereum minority forks to our users (to list them, there’s been Ethereum Classic [ETC], Bitcoin Cash [BCH] and Bitcoin Gold [BTG]), we have been receiving a lot of question about how we’re going to handle recent and upcoming Bitcoin forks (Bitcoin Diamond [BTD], Bitcoin Cash Plus [BCP] and UnitedBitcoin [UB], to name some examples).

Distributions of ETC, BCH and BTG were made by CryptoGames without any fee, charge, or other incentive. We processed those because we believe this was the right way to handle the situation and because we believe investors deserve access to all coins directly resulting from their investment. Based on those believes, we were happy to invest the time and preparations needed to give users easy and smooth access to their split coins, a chance that many of you embraced.

While we still think it is important to give investors access to their funds on all available chains, those permanently supported by CryptoGames, as well as those that won’t be further supported, there is one thing we believe to be even more important, security. At this moment, CryptoGames is storing 3,090 BTC on behalf of users in bankroll funds alone (cca. $52M worth, at current exchange rates). On top of bankroll funds, there also come the funds deposited by players and held in their active account balance. Securing these funds is of the uttermost priority for the site.

Since the distribution of BTG was finished, CryptoGames has made important steps to better secure the funds stored for both players and investors. One necessary step in this process will be the switch from the previous custom cold wallet setup to a hardware-based setup. For this task, CryptoGames is going to use a Ledger Blue as a core element. The switch to the Ledger will be performed during the next few days. The Ledger Blue is a hardware wallet specifically designed for enterprise-level usage. For those unfamiliar with Ledger or their product, more information about the Blue can be found here: https://www.ledgerwallet.com/products/ledger-blue
With the change in storage, there also comes a change in policy, specifically about chain splits and minority forks. In order to ensure the best possible security for all funds stored in CryptoGames cold wallets, we will not move funds off the Ledger Blue to make them available for forks or airdrops. This means CryptoGames will no longer be able to distribute all BTC forks (the same goes for ETH and other cold wallets stored on the Ledger Blue) regardless. This is a necessary sacrifice to maintain the high standard of security we have for user funds handled by CryptoGames.

Only if a Bitcoin minority fork gets an app and support from Ledger, we will be able to distribute the funds among investors (so far, this has been the case with both BCH and BTG). In all other cases, for all forks which are not supported on the Ledger Blue itself, CryptoGames will not move the cold wallet funds, will not compromise the addresses and security, will not put user’s funds at an unnecessary risk, in order to provide access to minority forks.

What this means for you as a user is, if you wish to access Bitcoin forks not supported by the Ledger hardware, you should withdraw your Bitcoin well before the forking point, manage the claim yourself, and can deposit your BTC again afterwards, and resume to your investment. If you do not care about minority forks, or if the minority fork you want to access is confirmed to be supported by Ledger, nothing changes. We will still provide distributions for all those forks we can distribute without putting funds to an unnecessary risk.