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XRP Hardware wallet trust crisis: Dom Kwok issues emergency security warning
Hardware wallets have long been regarded as the gold standard for protecting digital assets, and millions of holders of XRP and other cryptocurrencies rely on their security. However, on October 9, this foundation of trust suffered a severe blow. A voice in the community acted quickly to ensure that people fully understood the reasons behind the incident.
EasyA co-founder Dom Kwok has issued a security warning for hardware wallet users. He warns: "If you buy a hardware wallet online, remember: You must always generate your own mnemonics. If the wallet comes with a pre-filled mnemonic, it means that the device has been tampered with and do not use it."
Significant losses suffered by Ledger
Recent reports pointed out that more than US$90 million of funds were stolen from Ledger hardware wallet users in Southeast Asia. Investigators traced the damage to customers who purchased equipment through CryptoBilis, a regional distributor that operates in Malaysia, Indonesia and the Philippines.
Ledger suspended all CryptoBilis-related sales during the investigation. The current mainstream view is that this is a supply chain attack. The device was tampered with before reaching the buyer, which means the attacker had mastered the mnemonic words before the customer set up the wallet.
Core logic of Kwok warning
Kwok's warning hit the core mechanism of the attack. The mnemonic is the master key of the cryptocurrency wallet, and mastering it means controlling the funds. Bad dealers may preload mnemonics they have recorded on their devices. In this case, the buyer unknowingly surrenders full control the moment he deposits any assets.
A community member raised a question that many owners may be thinking: "Why does the device still generate its own mnemonic when it is set up when I buy it from the manufacturer's website?" The answer is: a regular device will generate new random mnemonic words on the device itself when it is first set up. Created by users and no one knows about it.
High-profile alternatives
Tangem and Xaman were pointed out by multiple community members as alternatives. The two serve different purposes:
- Tangem: A credit card form hardware wallet using NFC technology. It eliminates the need for mnemonic words at all, and the private key is generated and stored directly on the card, eliminating mnemonic attack vectors that affect Ledger users.
- Xaman: A software wallet built specifically for XRP Ledger. It stores keys on mobile devices rather than dedicated hardware, making it more suitable for active transactions than long-term cold storage. Xaman also offers NFC card options based on Tangem hardware, adding a hardware security layer.
Kwok's advice requires no professional knowledge: generate your own mnemonic words and never accept pre-filled mnemonic words. As attackers adopt more advanced strategies, investors must be more vigilant than ever.
