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The original was posted on /r/monero by /u/balz4 on 2024-08-02 01:10:42+00:00.

I started to experiment with Haveno-reto and even if the learning curve is steep and it was not easy to get in, I kind of like it. I would prefer if there were more trades going on, but maybe that'll come later on.

My question is : what could prevent any arbitrator, or some arbitrators together, to create fake accounts and steal the deposit money / XMR? From what I understand you need 2/3 keys, and I did some research and from 1.0.6 on you can't choose the arbitrator, but what would prevent a couple of arbitrators to wait for their moment and steal everything at once by pretending to buy / sell and using the second key to take the money?

Simply trying to understand how it works.

Because, seriously, Monero needs an alternative to Local Monero and it needs to be resilient as hell. If the 3 letter agencies were able to shut down LM in a couple of weeks, it seems to me Haveno must be as strong if not stronger. On the surface it is stronger as it is more anonymous, but again, I just don't get, yet, what could prevent arbitrators to wait for their moment and create a big rug pulling.

The Haveno FAQ says that the colluding risk can be "solved" by "employing a small number of bonded arbitrators with strong operational security knowledge". Now, correct me if I am wrong, but since when a centralization problem is solved by... more centralization? Wouldn't that would be like saying, in 1917 after the Russian revolution, that there is a risk of a bloody dictatorship but it is "solved" because the Politburo is pretty "bonded" and they have "strong historical and political knowledge"? I mean : the fact that someone has "strong operational security knowledge" doesn't mean he could not pull the rug and steal deposit. Security knowledge says nothing about integrity, no more than political knowledge could have prevented Stalin from taking over the Politburo.

I like Haveno, really, but it seems to me this is a risk and I'd like to know what is the general opinion. It seems to me really weak to simply say that the colluding risk is "solved" because a couple of guys are bonded and work together. One could say that the less arbitrators there is and the more bonded they are, the bigger the risk of a major pull rugging event.

Not trying to make any FUD. I like Haveno. But I'd like to read what others have to say about this risk. I just don't see how having less arbitrators and having them more "bonded" lessen the risk. If Haveno becomes hugely popular then the risk would be huge as well because one could make a lot of money with a simple collusion scheme.