DeFi· ★★· neutral·

BIP138 backup proposal for multisig wallets carries metadata exposure risk

  • —BIP138 was merged into the BIP repository on Sept. 21 and remains a Draft
  • —The backup stores descriptors and spending policies not recoverable from a seed
  • —A holder of an eligible xpub can decrypt a copy without the wallet's seed
  • —Private key material is stripped before encryption, so the backup grants no spending power
Why it matters: Multisig users gain a way to avoid losing access to funds, but xpub disclosure can expose wallet structure.
Source: CryptoSlate