ZachXBT Calls Hardware Wallets “Complete Garbage,” Labels Ledger the ‘Worst’ Crypto Wallet

TheNewsCryptoОпубліковано о 2026-07-16Востаннє оновлено о 2026-07-16

Анотація

Blockchain researcher ZachXBT criticizes hardware wallets, labeling them "complete garbage" and specifically targeting Ledger as the worst, arguing their frequent software updates increase security risks rather than enhancing safety. He points to major hacks, like a fake Ledger app stealing $9.5 million and a social engineering attack costing over $282 million, as evidence that threats often target user behavior, not the hardware itself. As an alternative for experienced users, ZachXBT suggests using a dedicated, factory-reset iPhone for crypto storage, citing Apple's Secure Enclave and app sandboxing. However, he acknowledges that smartphones, as online devices, cannot match the isolation of traditional cold wallets.

This week, the topic of crypto security became a relevant one because of blockchain researcher ZachXBT’s remarks on the reliability of hardware wallets in relation to self-custody of funds. In fact, his views were in contrast to the current practices and drew attention to the issue of crypto wallets’ protection in general, rather than that of hardware only. ZachXBT recommended using an iPhone instead of a hardware wallet for experienced users.

Security Threats Extend Beyond Hardware Wallets

Ledger transitioned from Ledger Live to Ledger Wallet, adding buying, swapping, staking, and yield management features. ZachXBT noted that the most serious accusation was against Ledger. Too many software updates complicate normal activities while posing additional security threats. Critics argue that every new feature expands the attack surface. It poses security threats owing to software vulnerabilities, while making no addition to the security of transactions.

These positions were justified by hacking events in which attacks did not take place on hardware but on its users. The fake Ledger application available in the Apple App Store is claimed to have stolen about $9.5 million from the accounts of its users who have revealed their recovery phrases. Another case of a social engineering attack resulted in the loss of more than $282 million by one cryptocurrency holder while interacting socially during the security procedure of a hardware wallet. Other cases involved losing USDC in an air-gapped Ledger and phishing letters with references to quantum computing breakthroughs.

Dedicated iPhones Join the Discussion about Self-Custody

ZachXBT claimed that a factory-reset iPhone specifically for storing cryptocurrencies is very safe due to the use of Secure Enclave, biometrics, and app sandboxing by Apple. Also, anonymous purchase of such a phone does not allow user data to be exposed after previous database breaches at Ledger. Yet, smartphones are online devices that will never be able to compete in terms of isolation from the Internet with traditional cold wallets. The researchers mentioned the existence of phishing crypto apps in the Apple App Store.

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Пов'язані питання

QWhat did blockchain researcher ZachXBT call hardware wallets, and what wallet did he label as the worst?

AZachXBT called hardware wallets 'complete garbage' and specifically labeled Ledger as the 'worst' crypto wallet.

QAccording to ZachXBT, what alternative method did he recommend for experienced users instead of using a hardware wallet?

AZachXBT recommended that experienced users use a factory-reset iPhone specifically for storing cryptocurrencies, instead of a hardware wallet.

QWhat are some of the security threats mentioned in the article that extend beyond the hardware wallet devices themselves?

AThe article mentions threats like fake wallet applications in app stores (e.g., a fake Ledger app stealing funds), social engineering attacks on users, loss of funds in air-gapped wallets, and phishing emails.

QWhy did ZachXBT argue that Ledger's shift to Ledger Wallet and the addition of new features posed security risks?

AZachXBT argued that too many software updates and new features (like buying, swapping, staking) complicate normal activities and expand the attack surface, introducing software vulnerabilities without adding to transaction security.

QWhat advantages of using a dedicated iPhone for crypto storage were highlighted by ZachXBT?

AZachXBT highlighted the safety of using a factory-reset iPhone due to Apple's Secure Enclave, biometrics, and app sandboxing. He also noted that an anonymous purchase prevents exposure from previous database breaches like those suffered by Ledger.

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