I only saw the part where they said in theory if a state forces them they could hand out the shards but that is unlikely to happen except if your a terrorist or some criminal or something. Big nope.

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Yes, agree. Big no-go for you and me.

But probably still better for people keeping their bitcoin on exchanges

and not willing/capable to do self-custody.

I'd argue it's not self custody if someone else can access your keys.