Binance founder CZ recommends "quarantining" new hardware wallets for two weeks after a Ledger reseller hack led to $86.9 million in stolen funds.
Binance founder Changpeng Zhao (CZ) has advised cryptocurrency investors to implement a strict "quarantine" period for newly purchased hardware wallets, refraining from using them for large asset transfers for at least two weeks. This recommendation comes in response to a recent incident in Southeast Asia where Ledger distributor CryptoBilis suffered a supply chain attack, resulting in approximately $86.9 million in losses for hundreds of investors in Malaysia, Indonesia, and the Philippines (involving Bitcoin, Ethereum, and Tron networks). Attackers physically opened packages in the distributor's intermediate warehouse and replaced the original instructions with pre-generated seed phrases. Ledger announced on October 9 that it had suspended sales through CryptoBilis and emphasized that its factory production, firmware, and Ledger Live application were unaffected, with only the logistics chain being compromised. CZ noted that physical devices could be tampered with before reaching customers, and official websites could also be hacked. Therefore, a quarantine period would provide time for on-chain analysts to detect theft and issue alerts. Over the past three months, physical delivery has become a major vulnerability for cold storage, with Coldcard and Trezor also reporting similar incidents.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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