Hardware wallets have long been trusted as the gold standard for securing digital assets. Millions of XRP and crypto holders rely on them. On October 9, that trust took a serious hit, and one
Hardware wallets have long been trusted as the gold standard for securing digital assets. Millions of XRP and crypto holders rely on them. On October 9, that trust took a serious hit, and one voice in the community moved fast to make sure people understood exactly why.
EasyA co-founder Dom Kwok posted a security warning directed at hardware wallet users. He told them, “if you buy a hardware wallet online, remember: you must always generate your own seed phrase. If your wallet comes with a pre-filled seed phrase, it’s compromised, and you should not use it.”
Reports emerged of over $90 million drained from Ledger hardware wallet users across Southeast Asia. Investigators traced the losses to customers who had purchased devices through CryptoBilis, a regional reseller operating across Malaysia, Indonesia, and the Philippines.
Ledger halted all CryptoBilis sales while it investigated. The leading theory points to a supply chain attack, where devices were tampered with before reaching buyers, meaning the seed phrases were already known to attackers before customers ever set up their wallets.
Kwok’s warning goes to the heart of how this attack likely worked. A seed phrase is the master key to a crypto wallet. Whoever knows it controls the funds. A reseller may pre-load a device with a seed phrase they have already recorded. In this case, the buyer unknowingly hands over full access the moment they deposit anything.
One community member asked a question many holders were probably thinking. He had bought from a manufacturer’s official website, so why did the device generate its own seed phrase during setup? The answer is that legitimate devices generate a new, random seed phrase during first-time setup on the device itself. The user creates it, and nobody else sees it.
Several community members pointed to Tangem and Xaman as alternatives. The two serve different purposes. Tangem is a hardware wallet in credit-card form that uses NFC technology. It operates without a seed phrase entirely, with private keys generated and stored on the card itself, removing the seed phrase attack vector that affected Ledger users.
Xaman is a software wallet built specifically for the XRP Ledger. It stores keys on a mobile device rather than dedicated hardware, making it better suited for active use than long-term cold storage. Xaman also offers its own NFC card option, built on Tangem hardware, which adds a hardware security layer.
Kwok’s advice requires no technical expertise. Generate your own seed phrase. Never accept one that arrives pre-filled. Investors need to be more vigilant than ever, as attackers are now employing more advanced tactics
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
Follow us on X, Facebook, Telegram, and Google News
The post Dom Kwok: Critical Security Warning for XRP Holders appeared first on Times Tabloid.
