ZachXBT Calls All Hardware Wallets "Trash," Suggests a Dedicated iPhone as a Replacement

On-chain investigator ZachXBT sparked heated debate in the crypto community after calling all hardware wallets "complete garbage" in a Telegram post.

He advised users to switch to a dedicated iPhone solely as a crypto wallet. His strongest criticism was directed at Ledger, which he called the worst because frequent app updates disrupted basic functionality.

However, this suggestion has drawn criticism from various parties, including Tornado Cash developer Roman Storm and Trezor, who believe that smartphones cannot replace the security of a hardware wallet.

Key Takeaways

• ZachXBT called hardware wallets “trash,” suggesting dedicated iPhones as an alternative, with the strongest criticism directed at Ledger.

• Tornado Cash developer Roman Storm agrees with the iPhone-specific idea, but the BIP39 passphrase feature isn't yet available in most mobile apps.

• Trezor rejects this idea, arguing that with zero-click attacks, iCloud backup risks, and reliance on Apple for activation and battery repairs.

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ZachXBT's Main Criticism of Hardware Wallets

ZachXBT highlights several weaknesses of hardware wallets that he believes make these devices unsuitable for storing valuable assets.

First, he criticized Ledger for its companion app receiving frequent interface updates and apps that "break simple actions."

Second, he emphasized that hardware wallets do not protect users from social engineering attacks, a fact reinforced by the $282 million theft case in January 2026 where a victim lost 2.05 million LTC and 1,459 BTC after falling victim to a scam.

Read Also: ZachXBT Accuses US Law Firm of Taking $71 Million in Lazarus Funds

Third, he highlighted a data breach at Ledger through payment partner Global-e that leaked customers' names, emails, phone numbers and physical addresses, opening the door to targeted phishing attacks.

Fourth, in April 2026, a fake Ledger Live app on the Apple App Store stole $9.5 million from more than 50 victims, including musician G. Love who lost 5.92 BTC after entering his seed phrase into the fake app.

Read Also:ZachXBT Releases 'Circle Files,' Accuses USDC of Failing to Comply with Issuer Rules

Why Are Custom iPhones Considered More Secure?

Photo by Surya Devarakonda on Unsplash 

ZachXBT argues that a dedicated iPhone used solely for crypto transactions can reduce risk because it is not used for browsing, messaging, or other apps.

iPhone has a Secure Enclave, a special cryptographic chip that stores private keys isolated from the main operating system and is protected by biometric authentication.

Apple also supports post-quantum cryptography such as ML-DSA and ML-KEM in the Secure Enclave on iOS 26+, which provides additional protection.

Tornado Cash developer Roman Storm agrees with this approach, but notes that mobile apps like MetaMask and Trust Wallet don't yet support the crucial BIP39 passphrase feature, an additional secret word that hides the original wallet behind an empty seed phrase.

Read Also: 8 Best Crypto Cold Wallets to Store Coins Safely

Risks and Criticisms of the iPhone Approach

Trezor rejects ZachXBT's idea with strong arguments.

Chief Commercial Officer Danny Sanders stated that the iPhone remains a versatile device with many potential entry points, including zero-click exploits that can infect the device without user interaction.

He also warned of the risks of iCloud backups and clipboard leaks when creating a seed phrase on an iPhone, as well as the reliance on Apple servers for device activation.

According to him, hardware wallets provide a separate screen and signing environment, ensuring that transaction details can be verified independently of the connected device.

Read Also:ZachXBT: "Stay Away From Projects Involving Gurhan Kiziloz"

Conclusion

ZachXBT's remarks sparked an important debate about the security of self-custody, but both he and his critics agree that there is no single perfect solution.

A dedicated iPhone may be suitable for technical users who can manage the risks of backups and device restrictions, while a hardware wallet still offers the advantages of physical isolation and independent verification.

Both approaches have drawbacks, hardware wallets do not protect against social engineering, while the iPhone relies on Apple's ecosystem which is not open and has infrastructure dependencies.

The best choice depends on your risk profile, technical expertise, and the amount of assets protected.

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FAQ

What does ZachXBT say about hardware wallets?

ZachXBT called all hardware wallets “complete garbage” and advised users against using them, with the strongest criticism being directed at Ledger.

What alternatives does ZachXBT suggest?

He recommends using a dedicated iPhone that is solely used as a crypto wallet.

Why is ZachXBT criticizing Ledger?

He criticized the Ledger Live app's frequent updates for disrupting basic functionality, as well as its history of data breaches and previous security incidents.

What is a BIP39 passphrase?

A security feature that allows users to add a secret word to the seed phrase, creating a hidden wallet that can only be accessed if the passphrase is entered correctly.

Is there a mobile app that supports BIP39 passphrase?

AirGap Vault is the only mobile app that supports this feature, while MetaMask, Trust Wallet, and Rabby do not.