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Can guardians "rug pull" their federations?

Federating custody across multiple guardians is a step up in bitcoin custody security because it means that no single guardian can steal the resources of, or "rug pull," their federation.

That said, while no individual guardian can defraud a federation on their own, it is technically possible for a super majority of guardians to collude to rug pull their federation.

For this reason, it is critically important that you join and use federations in direct proportion to your level of trust in them.

 

 

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