CZ warns about the risks of wallet upgrades modifying derivation paths, urging caution with self-custody and software changes. Binance founder CZ responded to early Bitcoin investor Davinci Jeremie’s experience with his multi-sig wallet showing a 'zero balance,' stating that wallet software upgrades that change the derivation path are 'very bad and scary,' calling it one of the 'self-custody perks.' Previously, Davinci pointed out that his 2-of-3 multi-sig wallet couldn’t locate the original address and balance despite using the correct private key due to a software change in the derivation path. He eventually recovered the funds using the old path he had saved. Several industry participants added that different standards (such as BIP44, BIP84, BIP86) generate different addresses under the same mnemonic phrase. If wallets upgrade without sufficient prompts or migration processes, users may mistakenly think their assets are lost.