TL;DR
- Binance co-founder Changpeng Zhao (CZ) recommends waiting at least two weeks before trusting a newly purchased hardware wallet with substantial crypto holdings.
- A reported $86.9 million theft across Bitcoin, Ethereum, and Tron networks has raised concerns about compromised devices distributed through third-party resellers.
- Ledger says its manufacturing process, firmware, and Ledger Live software were not compromised, pointing to potential weaknesses in the distribution chain rather than its core products.
Binance co-founder Changpeng Zhao (CZ) has urged crypto investors to exercise caution when setting up new hardware wallets, recommending a quarantine period before storing significant funds. His warning follows reports of more than $86 million in suspected cryptocurrency theft involving users in Southeast Asia who purchased devices through a third-party Ledger reseller.
One security tip.
When you buy a hardware wallet (or download a new software wallet), leave it for a couple of weeks before moving any meaningful amount of funds to it.
And follow the news in those weeks (and after), for hacks, etc. Hardware can be tempered with, software… https://t.co/TFsx64UihY
— CZ 🔶 BNB (@cz_binance) October 9, 2026
The incident has renewed attention on hardware wallet security, particularly the risks that can emerge before a device reaches its owner. Although cold wallets are designed to keep private keys offline, their protection depends on users maintaining control of their recovery credentials and verifying the integrity of their devices.
CZ Recommends A Two-Week Quarantine For New Crypto Wallets
CZ advised users to avoid immediately transferring substantial holdings into a newly acquired wallet. Instead, he suggested keeping the device under observation for approximately two weeks while monitoring security reports and potential warnings about compromised products.
The recommendation reflects a broader principle of self-custody. Hardware wallets remove the need to entrust private keys to an exchange, but they do not eliminate every security risk. A device obtained through an unreliable supply chain, or one configured with recovery information already known to an attacker, could expose funds despite the underlying technology functioning as intended.
A quarantine period could give security researchers time to identify suspicious transactions and alert other potential victims. However, waiting alone does not establish that a wallet is safe. Buyers should also verify the source of their devices, follow the manufacturer’s official setup instructions, and generate their own recovery phrases securely.
Ledger Suspends CryptoBilis Sales As Investigators Trace Losses
On October 9, Ledger said it was investigating reports of missing funds involving customers who purchased devices through CryptoBilis, a reseller serving markets including Malaysia, Indonesia, and the Philippines. The company asked the distributor to suspend sales and shipments while the investigation continues.
Blockchain investigator Specter estimated that suspected losses exceeded $86 million across Bitcoin, Ethereum, and Tron. The figure remains unconfirmed by Ledger, and investigators have not established how many wallets were affected or whether every traced loss involved the reseller.
Ledger advised customers who purchased devices through CryptoBilis within the previous 90 days not to initialize unused products. Those who had already activated their devices were told to consider moving their assets to a new Ledger signer with a newly generated recovery phrase.
