Trezor commercial chief Danny Sanders rejected blockchain investigator ZachXBT's claim that all hardware wallets are "complete garbage" unfit for storing funds or signing transactions.
Key Points:
- Sanders conceded that firmware updates can disrupt urgent, high-value transactions.
- He called hardware wallets the strongest self-custody option for average holders.
- Tornado Cash's Roman Storm urged mobile wallets to add BIP39 passphrases and air-gapped signing.
Hardware Wallet Criticism Resurfaces
ZachXBT wrote on Telegram this week that he would not trust the devices for signing transactions or holding funds. He told users to keep a separate iPhone reserved only for crypto. The advice challenged a long-standing pillar of self-custody.
Speaking on Friday, Sanders acknowledged the frustration behind the criticism. He admitted that firmware updates sometimes interrupt urgent, high-value transfers.
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Sanders Defends Hardware Security
Sanders argued that ZachXBT generalized from a narrow scenario involving sophisticated users who juggle large sums. Those setups need more than one device, he said. Still, he rejected the blanket dismissal of every product on the market.
He drew a firm line between expert configurations and everyday use.
A stripped-down iPhone still runs Wi-Fi, Bluetooth, iMessage and cellular. Those channels create more attack factors than a dedicated wallet, he said, and generating keys on the phone carries added risk. Hardware wallets, by contrast, add a separate screen for checking details before a signature, which Sanders called the strongest self-custody available for average holders.
Roman Storm Backs iPhone Idea
Tornado Cash co-founder Roman Storm leaned toward ZachXBT while flagging one gap. Few mobile wallets support BIP39 passphrases, a feature that hides real funds behind an empty wallet, so Storm urged developers to add it alongside air-gapped signing.
The passphrase would keep funds safe even if a written backup fell into the wrong hands.
The disagreement matters because self-custody has become the industry's default answer to exchange failures. Yet the recent wave of thefts targeted people, not chips, exploiting fake apps, leaked backups and social engineering. Both Sanders and Storm agree the weakest link now sits with the user, not the device.
This is not the first time hardware makers have faced heat in 2026. Earlier disputes over chip flaws and disruptive app rebrands had already strained trust before ZachXBT reopened the debate.
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