ZachXBT “fires back” with: “Hardware wallets are all garbage”; a Trezor executive snaps back: “Phones are easier to get attacked”

On July 16, on-chain investigator ZachXBT made a tough remark in a Telegram channel, saying, “All hardware wallets are complete garbage.” He said he does not recommend using them to sign transactions or store funds, and instead suggested using a dedicated iPhone that’s only for holding coins and signing.

Trezor’s Chief Business Officer Danny Sanders responded the same day, admitting that software and firmware updates can indeed affect emergency operations like high-value transactions, but arguing that ZachXBT described a high-end user scenario managing massive assets—one that cannot be used to dismiss the entire hardware wallet category.

(Backgrounder: On-chain detective ZachXBT—A wallet was stolen via a “social engineering attack,” taking 282 million USD worth of BTC and LTC) (Extra context: Cold wallets can’t stop it! Scam groups mail “official paper letters” to trick recipients into revealing seed phrases, making Ledger and Trezor users the target)

Table of contents

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• Trezor admitted updates can be a mistake, but doesn’t accept a sweeping dismissal
• The problem with a dedicated iPhone is the attack surface
• Roman Storm passes the ball to wallet developers

Key takeaways

• On July 16, ZachXBT said all hardware wallets are garbage, called out Ledger as the worst, and recommended a dedicated iPhone
• Trezor CBO Danny Sanders pushed back, stressing that independent screen verification of transactions is an extra layer that phones lack
• Roman Storm partly agreed, saying mobile wallets lack support for BIP39 Passphrase and offline signing

On July 16, on-chain investigator ZachXBT threw a hard line in his Telegram channel. He said, “All hardware wallets are complete garbage. I don’t recommend using them for important tasks like signing transactions or storing funds,” and suggested switching to a dedicated iPhone that’s only for holding coins and signing.

He singled out Ledger as one of the worst, saying Ledger Live often pushes updates for interface and app updates, with little justification—yet it ends up breaking what should be simple operations. He listed pain points like dead batteries, being forced to update firmware, and after interface redesigns, multisig being unable to sign out.

For someone who deals with stolen cases every day, these complaints are not theoretical—they’re what he has seen at the scene of incidents.

Trezor admitted updates can be a mistake, but doesn’t accept a sweeping dismissal

On the same day, Trezor Chief Business Officer Danny Sanders responded, first conceding half. He said software or firmware updates can indeed affect emergency operations involving high-value transactions, and that the current product still has shortcomings in balancing security and usability.

But he believes the scenario ZachXBT described mainly applies to advanced users managing massive assets, and that assets at that level shouldn’t rely on a hardware wallet alone.

People who need to manage large amounts of assets in high-risk environments require different setups, and a single hardware wallet is not the best solution for them. But that doesn’t mean you can just say everything is garbage.

The problem with a dedicated iPhone is the attack surface

Sanders did not fully reject ZachXBT’s proposal. He said incorporating a dedicated iPhone used only for signing and asset storage into a high-end security setup has some value—the issue is that a phone comes with features like Wi-Fi, Bluetooth, mobile networks, iMessage, and more, giving it a far larger attack surface than hardware wallets.

He emphasized that hardware wallets have their own display, allowing users to verify transaction contents before signing—an independent verification step that a connected phone can’t provide. For ordinary crypto users, it still remains the strongest self-custody option available today.

In reality, this debate is about two different threat models. ZachXBT is worried the device can’t be used at the critical moment; Sanders is worried the device is compromised in a network-connected environment. The former is a usability problem, the latter a security problem. Both sides are not wrong—just each pointing to different failure scenarios.

Roman Storm passes the ball to wallet developers

Roman Storm, co-founder of Tornado Cash, partly agreed with ZachXBT’s view, but pointed out the key bottlenecks are functionality: at present, mobile wallets generally do not support BIP39 Passphrase (seed phrase password) and offline signing (Air-gapped Signing). He urged wallet developers to add these two pieces as soon as possible.

Other players also chimed in. Hardware wallet maker Keystone acknowledged that ZachXBT’s criticism has merit, but stressed that most users still need dedicated devices and also need discipline. Ledger, meanwhile, positions itself around the fact that offline private keys cannot be phished or tampered with.

FAQ

Why did ZachXBT call hardware wallets garbage?

On July 16, he pointed out that hardware wallets are prone to problems at critical moments, including dead batteries, being forced to update firmware, and interface redesigns causing multisig transactions to fail to sign. He also called out that Ledger Live often updates “just because,” aiming to update and thereby breaking an originally simple operation.

Is storing coins on a dedicated iPhone really safer?

Trezor Chief Business Officer Danny Sanders said it has value for advanced users, but a phone has Wi-Fi, Bluetooth, mobile networks, and iMessage—so its attack surface is larger than that of a hardware wallet. It also lacks an independent screen to verify transaction contents before signing.