Binance founder Changpeng Zhao has urged crypto users to prioritize wallet security, highlighting the risks associated with hardware and software wallets.
In an October 10 post on X, Zhao backed self-custody and referenced YZi Labs’ investments in hardware wallet makers OneKey and SafePal, alongside mobile wallet provider Trust Wallet. He urged users to “Stay SAFU out there” and understand the security risks of different wallet types.
CZ Warns Against Rushing Into New Wallets
Zhao previously advised users to keep newly purchased hardware wallets and newly downloaded software wallets separate from their main funds for several weeks. He recommended monitoring security reports before transferring large amounts of cryptocurrency.
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The advice follows reports of $86 million to $87 million in losses linked to a third-party Ledger reseller in Southeast Asia. Attackers allegedly replaced instructions containing seed phrases. Ledger said its manufacturing process, firmware, and official software had not been compromised.
Suspicious Ledger Device Raises Questions
Former Mt. Gox CEO Mark Karpelès reported finding a small component inside a Ledger device shipped from Malaysia. He described it as a “spy SIM card,” but its function remains unclear. No confirmed link to the reported losses has been established.
The finding does not prove hardware wallets are inherently unsafe. It highlights the importance of verifying device sources and protecting recovery phrases.
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