The Cost of Single-Key Failure
Wallet drainers and the case for distributed signing

Project Overview
Wallet drainers show why convenience without distributed signing turns one mistake into total loss. Scam Sniffer observed $494 million in reported drainer losses across more than 332,000 affected wallets in 2024. Losses fell in 2025, yet more than 106,000 wallets were still affected, proving that the underlying single-key design risk remains intact.
Affected Wallets
Losses 2024
Losses 2025
Results & Impact
Most drainers do not defeat cryptography. They exploit the fact that one valid signature is enough. A malicious approval, cloned application, or compromised extension turns the same private key that enables convenience into a single point of failure.
- Reduced average response time by 68%
- Increased appointment bookings by 46%
- Lowered support workload by 58%
- Improved first-call resolution rates
- Created scalable systems for future business growth
- Delivered consistent customer experiences

Research & Analysis
The relevant security question is how many independent systems must fail before funds can move. In a hot wallet, the answer is one. In a threshold wallet, an attacker must compromise two isolated environments before gaining spend authority.
Solution Implementation
Privatum removes unilateral signing. The desktop client signs locally, while the co-signer validates session, policy, transaction intent, daily limits, and velocity before producing the second partial signature.
Key Achievements
The result is a custody model where a stolen laptop, a malicious prompt, or a server breach alone yields no spend authority. Convenience remains, but the blast radius is fundamentally reduced.
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