There has been a marked increase in physical attacks against crypto asset holders, using violence to force access to their funds. As reported by CriptoNoticias in early January last year, incidents of this type increased by 46% in 2025 compared to 2024.
In this context, the team at the Unstoppable account, which focuses on privacy and financial freedom, published an opinion questioning one of the most widespread recommendations in the cryptocurrency ecosystem. Use of hardware wallets.
Hardware wallets offer tangible benefits in terms of digital security, as they isolate private keys from internet-connected devices and significantly reduce security risks. Theft through malware, viruses, and remote access.
Additionally, it allows you to sign transactions without exposing your keys, making it especially useful for: Protect your funds long term Or you can process large amounts of data while being less dependent on the security of your users’ operating systems.
Is using a hardware wallet the safest way to protect your crypto assets?
The Unstoppable team suggests: Security is not a “one-dimensional” concept And focusing solely on cryptographic protection can ignore associated risks as well.
According to their analysis, carrying a hardware wallet can make users a “physical target.” It’s a recognizable device, so carry it with you. Indirectly indicates holding of crypto assets.
In scenarios where crypto-related deaths, robberies, extortion, and kidnappings occur, this visibility becomes a tangible disadvantage.
As seen in the graph below by a developer known as Haseeb on X, 4 out of 65 physical attacks were recorded last year. ended with death toll:
Less obvious physical risks and vectors
Another thing Unstoppable warned about is hardware wallets. does not exclude other attack vectorsHowever, you can add new ones.
Russ hardware wallet Requires complementary software to usedesktop applications, extensions, etc. PhishingIn other words, it’s a scam designed to steal your credentials or trick you into signing a malicious transaction.
Additionally, even if the device protects the private key, users are given the standard recommendation to write down the seed phrase on paper. A seed is a series of words that restores access to funds.
For Unstoppable, the point is “Fails to serve the purpose” of physically securing devicesThis is because it introduces backups that are vulnerable to theft, fire, or unauthorized access.
This position is also supported by recent case law. Following the leak of Ledger customer data reported by CriptoNoticias, one of the most famous manufacturers of hardware wallets. Documented threats and attack cases Targeted at people whose data was leaked.
Is there a more modest alternative?
Faced with this scenario, Unstoppable has shown that for many users, Supported by an open source, well-designed and secure operating system environmentcould be a more balanced option.
As Unstoppable revealed, in these environments sensitive data is sequestered within the phone’s hardware, making it difficult to extract even if the system is compromised.
The central argument is not that hardware wallets are insecure by definition; They are not necessarily the best universal option.
A discreet mobile wallet reduces the chances of being identified as the owner of your crypto assets. Can limit physical exposure and provide a more integrated user experiencewithout relying on additional devices.
A review of Unstoppable points out that: Custody rights need to be determined comprehensively.considers not only encryption, but also social environment, mobility habits, and each person’s true threat profile.
