CZ warns of the risks associated with wallet upgrades and modifications to forked paths; self-custodied wallets should be wary of software changes.

On February 27th, PANews reported that Binance founder CZ, responding to early Bitcoin investor Davinci Jeremie's experience of his multisignature wallet showing a zero balance, stated that wallet software upgrades that change the derivation path are "very bad and terrible," calling it "the price of self-custody perks." Previously, Davinci pointed out that his 2-of-3 multisignature wallet, due to a software change to the derivation path, could not find its original address and balance even with the correct private key, and was only able to recover it by relying on the saved old path. Several industry participants added that different standards (such as BIP44, BIP84, and BIP86) will generate different addresses under the same mnemonic phrase. If wallet upgrades are not adequately prompted and migrated, users may mistakenly believe they have lost their assets.