'All hardware wallets are garbage': on-chain sleuth ZachXBT trashes Ledger, proposes an unlikely fix

Prominent on-chain investigator ZachXBT, known for uncovering major crypto thefts and scams, said in his Telegram channel on Wednesday, July 16, 2026, that all hardware wallets are "complete garbage" and that Ledger is the worst option on the market. The post drew more than 18,000 views within hours.

“Hot take: All hardware wallets are complete garbage and I do not advise using them for important tasks like signing transactions or storing funds.”

— ZachXBT, Telegram, July 16, 2026

Quote source: CryptoTimes

What Specifically Bothers Him About Ledger

ZachXBT's main complaint about Ledger is the frequency of Ledger Live updates, which he says overhaul the interface "for no good reason" and often break basic functions in the process. This isn't a one-off incident — it's a systemic software-quality problem with the app that accompanies the hardware wallet.

Why This Came Up Now

The first half of 2026 has genuinely been rough for Ledger and hardware wallets in general — though most of the high-profile incidents exploited the human layer around the device rather than the physical key-storage hardware itself. In April, a fraudulent Ledger Live clone on the Apple App Store drained roughly $9.5 million from users, including musician G. Love, who lost his 5.92 BTC retirement fund after entering his seed phrase into the fake app.

What ZachXBT Proposes Instead

Instead of a hardware wallet, he recommends using a separate iPhone exclusively as a crypto wallet — with the caveat that the approach is only suited to technically proficient users. His reasoning: modern iPhones have a Secure Enclave, a hardware-isolated coprocessor functionally similar to a dedicated signing device, combined with aggressive app sandboxing, fast security patches and biometric authentication. In his view, that combination may offer a smaller attack surface than a hardware wallet paired with a general-purpose computer, and buying a phone at retail also avoids the supply-chain risk of exposing data linking a device to crypto ownership.

What This Means in Practice

ZachXBT's take isn't mainstream, and Ledger has previously said its security model remains sound as long as users never enter their seed phrase into an external app — precisely the condition that was violated in the G. Love case. Still, the debate highlights a real issue: choosing between cold and hot storage matters, but it doesn't by itself protect against phishing apps and fakes — basic hygiene (never entering a seed phrase outside the official device, only downloading apps from verified sources) still matters more than the specific wallet brand you pick. Our roundup of the top 5 hardware wallets for beginners can still be useful for anyone sticking with the traditional approach despite ZachXBT's criticism.

This material is for informational purposes only and is not a recommendation to purchase any specific device.