CZ Urges Waiting Period Before Using New Hardware Wallets
Changpeng Zhao recommended that users wait at least two weeks before moving significant funds to a newly purchased hardware wallet. He said this delay could help detect tampered devices or software after a breach involving a Ledger distributor in Southeast Asia. Ledger reported that unauthorized transfers tied to affected wallets exceeded $86.9 million.
Changpeng Zhao, co-founder of Binance, suggested new hardware wallets sit unused for at least a fortnight before holding meaningful sums. He framed this as a way to catch tampering or compromised software after a Ledger distributor breach in Southeast Asia. Ledger suspended CryptoBilis sales and said attackers altered packages at intermediary depots, replacing setup instructions with cards containing pre-made recovery phrases.
The unauthorized transfers surpassed $86.9 million and touched Bitcoin, Ethereum, and Tron wallets, mainly users in Malaysia, Indonesia, and the Philippines. Ledger said its manufacturing, device software, and companion app were not implicated. Similar supply-chain issues hit Coinkite’s Coldcard and Trezor’s logistics contractor, exposing customer data.
This warning may push crypto holders to treat hardware wallets as supply-chain risks, not just secure storage. Retail buyers in affected regions could face anxiety, extra verification steps, and delays before moving funds. Manufacturers and distributors may see greater scrutiny, with direct sales and neutral delivery addresses becoming more attractive. If such precautions spread, they could reduce losses from tampered devices, though they may also add friction for newcomers and smaller investors.