- ZachXBT advised against hardware wallets for critical crypto storage and signing.
- He called Ledger the worst, citing frequent software updates disrupting functions.
- Social engineering remains a greater threat than hardware wallet vulnerabilities.
Blockchain investigator ZachXBT has criticized hardware wallets, arguing they are unsuitable for securing large cryptocurrency holdings or signing important transactions.
Instead, he suggested using a dedicated iPhone exclusively for crypto management and singled out Ledger as the weakest option among major hardware wallet providers.
ZachXBT Questions Hardware Wallet Security
In a recent Telegram post, ZachXBT described current hardware wallets as “complete garbage” for critical crypto operations. He advised users against relying on them to store significant digital assets or approve sensitive transactions.
Instead, ZachXBT recommended using a separate iPhone dedicated solely to cryptocurrency activities. According to him, limiting the device to crypto management can reduce operational risks associated with everyday smartphone use.
He also criticized Ledger, one of the largest hardware wallet manufacturers, calling it the worst among existing providers. ZachXBT argued that frequent updates to the company’s Ledger Wallet application, formerly known as Ledger Live, often disrupt basic functions without offering meaningful benefits.
ZachXBT Says Hardware Wallets Are “Garbage,” With Ledger the Worst
ZachXBT, one of the crypto industry’s most prominent onchain investigators, said he does not consider current hardware wallets suitable for signing critical transactions or storing large amounts of assets,… pic.twitter.com/UuVYX7NbjH
— Wu Blockchain (@WuBlockchain) July 16, 2026
However, his comments reflected personal opinions rather than evidence of a new security vulnerability affecting Ledger devices. He did not claim that Ledger’s private-key protection had been compromised or that users faced an immediate technical security threat.
Ledger continues promoting hardware wallets as a secure method for keeping private keys offline and isolated from internet-connected devices. The company has also released regular software updates focused on security improvements, bug fixes, and interface enhancements.
Social Engineering Remains the Bigger Threat
ZachXBT’s criticism comes as crypto investors continue losing funds through phishing attacks and social engineering rather than flaws in hardware wallets themselves.
Earlier this year, he investigated a case involving more than $282 million worth of Bitcoin and Litecoin stolen from a hardware wallet user. According to his findings, the attackers relied on social engineering before laundering part of the stolen assets through several services and converting them into Monero.
Similarly, Ledger users have repeatedly been targeted through fake wallet applications. In April, a fraudulent Ledger app briefly appeared on Apple’s App Store and reportedly stole approximately $9.5 million from more than 50 victims after convincing users to enter their recovery phrases.
These incidents demonstrate that attackers often exploit human error instead of breaking hardware wallet security directly. Fake software, phishing websites, and deceptive messages remain among the most common methods used to compromise cryptocurrency holders.
The debate highlights differing approaches to self-custody. While hardware wallets prioritize offline key storage, ZachXBT believes strict device separation offers stronger operational security.
Even so, both approaches still require users to protect recovery phrases, verify transactions carefully, and remain alert against increasingly sophisticated scams.
The post ZachXBT Slams Hardware Wallets, Calls Ledger the Worst appeared first on Live Bitcoin News.
