Binance co-founder Changpeng Zhao, widely known as CZ, commented on one of the core risks in self-custody after reposting X user Rager’s account of a hardware wallet failure. In his remarks, CZ said safeguarding a wallet backup seed phrase is an extremely difficult task. He said the phrase must not be seen by others, because it could be copied or exploited, but it also cannot be destroyed in accidents such as fires or floods. He added that users must also keep hackers from gaining access to it. Just as important, he said, is that the owner must not lose the seed phrase themselves. The comments were made in response to a user experience involving hardware wallet malfunction and focused on the operational burden that comes with holding crypto assets through self-custody.
Binance co-founder Changpeng Zhao, or CZ, reposted X user Rager’s experience with a hardware wallet failure and used the post to highlight a core self-custody risk.
CZ said protecting a wallet backup seed phrase is an extremely difficult task. The seed phrase cannot be seen by other people, since it could be copied or exploited. At the same time, it cannot be destroyed in accidents such as fires or floods, and it must also be kept out of reach of hackers. Just as importantly, CZ said, users cannot afford to lose the seed phrase themselves.
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