Changpeng Zhao Found a Way to Make Cold Wallets Truly Secure

Co-founder and former head of Binance, Changpeng Zhao (CZ), suggested making all hardware wallets transparent following the scandal involving a bug found in Ledger devices. The crypto community did not warmly embrace the idea, and the head of Ledger rejected it.

Ledger recently admitted that a spy chip was found in one of their client's wallets: someone tampered with the device after it left the factory and installed the component inside. The company blamed the reseller CryptoBilis, but many users believe the problem lies in Ledger's own factory controls.

CZ proposed a simple solution: if the wallet's case is transparent, it would be much harder to hide an extra component inside. A buyer could simply inspect the device to see if anyone had tampered with the case. The idea gained traction: one commentator urged Ledger to release such a model and shared a concept of a transparent cold wallet, which went viral on social media.

The crypto community's reaction was mixed. Some made jokes, others advised against self-custody of crypto and suggested using custodial services, while others recalled competitors. One user mentioned that they have been holding coins on SafePal for five years without any issues.

The main counterargument was presented by Bitcoin investor Dan Held: according to him, a transparent case would give people a false sense of security. CZ did not argue—he acknowledged that hackers would find another way and cited a 2023 Forbes article as an example, which warned Apple users against charging their devices with foreign cables, illustrating an attack from an unexpected source. Ledger's CEO Pascal Gauthier responded that transparent cases are unnecessary and, instead of explanations, invited everyone to the Ledger Open event, where he promised to showcase the future of the industry.