Trezor Chief Commercial Officer Danny Sanders responded Friday to blockchain investigator ZachXBT's recent criticism of crypto hardware wallets, which ZachXBT called 'complete garbage' in a Telegram post earlier this week. ZachXBT recommended users instead dedicate a separate iPhone for storing funds and signing transactions. Sanders acknowledged usability frustrations but defended hardware wallets as the 'strongest form of self-custody' currently available for average crypto holders, arguing that ZachXBT's criticism applies primarily to sophisticated users managing large sums in high-stakes environments. The exchange highlights ongoing debates within the crypto community over optimal self-custody security methods.
Sanders Defends Hardware Wallets for Average Users
In an interview Friday with The Block's Gareth Jenkinson on The Starting Block, Sanders acknowledged frustrations around hardware wallet criticism, especially when software or firmware updates disrupt urgent or high-value transactions. 'I actually get it, and I agree that we have clunky solutions out there,' Sanders said. 'It's really hard to build on the edge of security and usability.'
However, Sanders argued that ZachXBT was generalizing from a use case that really only involves sophisticated users managing large sums. 'People who have to manage a lot of value in high-stakes environments need different setups, and just a single hardware wallet is not the best solution for that,' Sanders said. 'But it doesn't mean you can just say everything is garbage.'
iPhone Attack Vectors Exceed Hardware Wallet Risks
Sanders stated that a stripped-down iPhone could be a useful part of an advanced setup, but its operating system and connectivity features create more 'attack factors' than with a hardware wallet. 'You have Wi-Fi and Bluetooth and iMessage and cellular,' Sanders said. 'Even generating your keys on a wallet on your iPhone is more risky than with a hardware wallet.'
Hardware wallets also come with a separate screen that users can verify transaction details before signing, Sanders added. For average crypto holders, Sanders called hardware wallets the 'strongest form of self-custody' that is currently available.
Storm Calls for BIP39 Passphrase Support in Mobile Wallets
Tornado Cash co-founder Roman Storm weighed in on the debate, siding more with ZachXBT and arguing that the main obstacle is the lack of mobile wallets that support BIP39 passphrases. This feature allows users to add an extra word or phrase to their seed phrase, which Storm said can protect funds if someone were to find the physical written backup.
'ZachXBT's got the right idea,' Storm wrote. 'There's just nothing on mobile to actually do it with.' Storm called on mobile wallet developers to add BIP39 passphrase support and air-gapped transaction signing, allowing a user to sign transactions without connecting to a network.
FAQ
What did ZachXBT say about hardware wallets?
ZachXBT wrote in a Telegram post earlier this week that 'all hardware wallets are complete garbage' and recommended users instead dedicate a separate iPhone that's only used to store funds and sign transactions.
Why does Trezor's CCO defend hardware wallets?
Danny Sanders argued that ZachXBT's criticism applies mainly to sophisticated users managing large sums in high-stakes environments, while hardware wallets remain the 'strongest form of self-custody' currently available for average crypto holders. Sanders noted that iPhones have more attack vectors including Wi-Fi, Bluetooth, iMessage, and cellular connectivity compared to hardware wallets.
What mobile wallet feature does Roman Storm advocate for?
Roman Storm called on mobile wallet developers to add BIP39 passphrase support, which allows users to add an extra word or phrase to their seed phrase to protect funds if someone finds the physical written backup. Storm also advocated for air-gapped transaction signing that allows users to sign transactions without connecting to a network.
