Trezor Rebuts ZachXBT Hardware Wallet Claims.

• Trezor says hardware wallets remain the strongest self-custody option for everyday crypto holders.
• Danny Sanders argues dedicated iPhones expose users to more attack surfaces than hardware wallets.
• Roman Storm urges mobile wallets to support BIP39 passphrases and air-gapped transaction signing.

Trezor has rejected blockchain investigator ZachXBT’s criticism of hardware wallets, arguing they remain the strongest self-custody option for most cryptocurrency holders. The exchange followed ZachXBT’s recommendation that users replace hardware wallets with a dedicated iPhone, reigniting debate over the safest way to protect digital assets.

Trezor Defends Hardware Wallet Security

Trezor Chief Commercial Officer Danny Sanders disputed ZachXBT’s claim that all hardware wallets are “complete garbage” for storing funds and signing transactions. He responded during an interview on The Starting Block after ZachXBT criticized hardware wallets in a Telegram post.

ZachXBT advised crypto users to use a dedicated iPhone exclusively for storing funds and signing blockchain transactions instead. He argued that such a setup offers stronger protection for users managing valuable cryptocurrency holdings.

Sanders acknowledged that hardware wallets still have usability challenges. He noted that firmware updates can occasionally interrupt urgent, high-value transactions and create frustration for experienced users.

However, he argued that these limitations should not discredit hardware wallets entirely. 

THE BLOCK: Trezor CCO Danny Sanders pushed back on ZachXBT’s claim that hardware wallets are “complete garbage.”

A dedicated iPhone may suit advanced users, but its larger attack surface makes hardware wallets the “strongest form of self-custody” for everyday holders, Sanders… pic.twitter.com/Hf5VZtt5Wv

— The Block (@TheBlockCo) July 17, 2026

According to Sanders, ZachXBT’s criticism focused mainly on advanced users handling significant amounts of digital assets.

He explained that sophisticated investors often require multiple security layers rather than relying on a single hardware wallet. 

Even so, Sanders maintained that dedicated hardware devices remain suitable for the broader crypto community.

Sanders also questioned the security advantages of using an iPhone for key management. He said smartphones include Wi-Fi, Bluetooth, cellular connectivity, and messaging services that increase potential attack surfaces.

By comparison, hardware wallets isolate private keys from internet-connected environments. They also provide independent screens for verifying transaction details before users approve transfers.

Sanders described hardware wallets as the strongest form of self-custody currently available for everyday cryptocurrency holders despite their operational limitations.

Industry Debate Highlights Different Security Approaches

The discussion attracted additional comments from Tornado Cash co-founder Roman Storm, who partially agreed with ZachXBT’s broader concerns about mobile security solutions.

Storm argued that the biggest limitation is the lack of mobile wallets supporting BIP39 passphrases. The feature adds an extra layer of protection by requiring an additional secret phrase alongside a standard recovery seed.

He also encouraged developers to implement air-gapped transaction signing, allowing users to authorize transactions without maintaining an active network connection.

The disagreement reflects broader discussions about crypto security rather than a clear winner between hardware wallets and smartphones. Security experts generally agree that different users require different protection models depending on their holdings and risk exposure.

For average investors, dedicated hardware wallets continue to provide purpose-built protection through offline key storage and independent transaction verification. Meanwhile, advanced users managing substantial assets may combine multiple devices and security practices instead of relying on a single solution.