Ripple CTO Warns of Hardware Wallet Phishing, $1.7B Stolen
Ripple CTO David Schwartz warns of a surge in hardware wallet phishing as scammers send fake firmware updates and urgent verification emails to steal seed phrases. Chainalysis data shows hardware wallet phishing made up over 80% of crypto thefts in 2024, with global losses topping $1.7 billion. Amid the crypto market downturn, investors are shifting assets to cold-storage stablecoins. Wallet makers Ledger and Trezor stress they never request seed phrases via email. Traders should verify all security alerts through official channels and never enter seed phrases outside a hardware device. Vigilance against hardware wallet phishing remains the best defense.
Bearish
The surge in hardware wallet phishing, with losses topping $1.7 billion, heightens security concerns across the crypto sector. Traders may retreat from riskier assets, shifting funds into stablecoins and cold storage. This defensive posture can reduce market liquidity and trading volumes, exerting short-term downward pressure on prices. In the long term, sustained security risks could dampen investor confidence and slow adoption, reinforcing bearish sentiment.