Binance co-founder Changpeng Zhao, widely known as CZ, reposted an X thread from user Rager describing a hardware wallet failure and used the case to highlight the difficulty of protecting wallet backup seed phrases. CZ said safeguarding a seed phrase is extremely challenging because it has to stay out of sight of other people, who could copy or misuse it, while also remaining safe from physical damage caused by accidents such as fire or flooding. He added that users also need to prevent hackers from gaining access to the phrase. His final point was simple: the owner cannot lose it either. The remarks focused on the practical trade-offs involved in self-custody, where backup information must remain both accessible to the holder and protected from theft, exposure, and destruction.
Binance co-founder Changpeng Zhao, or CZ, reposted on X a story from user Rager about a hardware wallet failure.
CZ said protecting a wallet backup seed phrase is extremely difficult. The seed phrase cannot be seen by others, or it could be copied or misused. It also cannot be destroyed in accidents such as fires or floods, and users still need to keep hackers from gaining access. Most importantly, CZ said, users cannot lose the seed phrase themselves.
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