Cypherock Review 2025: The Safest Crypto Wallet?

When it comes to protecting your digital assets, the Cypherock X1 hardware wallet sets a new benchmark in crypto security. With a completely innovative and different approach from traditional hardware wallets like Trezor and Ledger. The Cypherock X1 vault offers among the most secure methods to store private keys without the common vulnerabilities associated with traditional seed phrases. Taking control of your assets with a wallet that prioritizes security and ease of use is an important balance that crypto users should strive for.

With Cypherock X1, users get more than just a hardware wallet—it’s a complete vault for managing up to four different wallets, eliminating the risk of losing everything due to human error or theft. Cypherock X1 offers advanced features like decentralized key storage, multi-wallet management, and an upcoming inheritance solution called Cypherock Cover, designed to secure your assets for future generations.

Cypherock has completely reimagined how we secure our crypto, focusing on user-friendly solutions for safeguarding private keys. In a world where billions have been lost due to seed phrase mismanagement and user error, this device brings a much-needed change and evolution to traditional hardware wallets.

In this review, we’ll explore Cypherock’s key features, evaluate its security, and weigh its pros and cons to see if it truly lives up to its reputation. Can this wallet really offer the peace of mind crypto holders are searching for? Let’s find out.

The folks over at Cypherock were kind enough to send us a couple of devices for testing and review purposes, so strap in as we dive deeper into the hardware wallet and explore how this slick piece of tech is rewriting the rules of digital asset security, one encrypted bit at a time!

What Is Cypherock?

Cypherock is making waves in the hardware wallet space, having entered the market with an open beta in 2022, and officially launching its flagship product, the Cypherock X1, in 2023. Touted by some as the most secure hardware wallet available, the X1 stands out by eliminating the typical vulnerabilities linked to seed phrases. As soon as Cypherock came across our radar, offering a new and revolutionary addition to the hardware wallet industry, we knew we had to get our hands on one and test it out for ourselves.

Its security has been thoroughly vetted through independent audits by WalletScrutiny and Keylabs, the same experts who have identified flaws in leading competitors like Ledger and Trezor.

“The Cypherock X1 is an innovative wallet that uses many hardware and software security best practices and even features several security firsts that we have not yet seen in other wallets. These include hardware attestation through manufacturer BIP39 derived signatures, the use of several JavaCard based NFC as a kind of multifactor authentication at the time of signing and Shamir Secret Sharing for storing the bip39 seed phrase of the user.” – Keylabs Audit

How Cypherock Stands Out

So, what makes the Cypherock X1 truly different? Rather than relying on the common seed phrase system, it employs a decentralized method to safeguard private keys, significantly boosting security. At the core of this system is Shamir’s Secret Sharing, a cryptographic solution that breaks your private key into five distinct parts. These segments are securely stored across the X1 Vault and four X1 Cards, all under your control. For added protection, you can store these cards in different locations to reduce risk.

Even with its sophisticated security design, the X1 remains intuitive for everyday use. Making a transaction is as simple as tapping one of the four X1 Cards on the vault. This approach removes the hassle of managing seed phrase backups and protects users from single points of failure. Importantly, Cypherock users aren’t dependent on the hardware itself. In the event of a lost or damaged device—or even if Cypherock as a company were to shut down—there are still reliable ways to recover your funds. Users can retrieve their recovery phrase or access the open-source mobile app (in development) to recover their assets with ease.

The fact that users do not need to rely on Cypherock as a company or the hardware of this device to recover funds is an important point to highlight. The Cypherock X1 encapsulates the true ethos of crypto, and that is empowering users to take full sovereign control of their assets without every having to trust any third party or custodian.

That’s the big picture. Now, let’s take a closer look at the team behind Cypherock and how they brought this vision to life.

Visit Cypherock

Meet the Cypherock Team

Cypherock was founded by two forward-thinking individuals determined to address the gaps in crypto self-custody: Rohan Agarwal (CEO) and Vipul Saini (CTO). Together, they recognized that the current methods of self-custody in the crypto space weren’t sufficient for mass adoption, largely due to the risks of human error and complicated security processes.

Rohan Agarwal, entered the crypto world in 2017. Over the years, he has collaborated with a range of organizations, including Blockgeeks, Samsung, Apollo Munich, and many others, bringing a wealth of experience to the table. His diverse technical and non-technical background helped shape the core vision of Cypherock: a wallet that eliminates seed phrase vulnerability risk while remaining self-custodial and providing robust security for digital assets.

Vipul Saini has been an expert in hardware security and embedded systems since 2012. His work on high-level projects like autonomous drones with Lockheed Martin, and his time as the first employee at a venture-backed robotics startup, showcase his passion for frontier technologies. Vipul’s expertise in cryptography and hardware security helped shape Cypherock’s unique design, making it one of the most secure wallets available today.

Both Rohan and Vipul recognized that one of the biggest threats to crypto users is themselves—mistakes in handling recovery phrases have led to billions in lost assets. Their goal was to create a hardware wallet that not only simplifies crypto storage but also makes it resilient to human error, theft, and device failure. With the backing of key industry leaders like GnosisDAO and Sandeep Nailwal, co-founder of Polygon, Cypherock is poised to significantly enhance how we protect and manage our digital wealth.

Why Cypherock

Cypherock has boldly addressed one of the most significant weaknesses in crypto wallets: seed phrase vulnerability. By eliminating the need for a seed phrase, Cypherock ensures users maintain full control over their assets without having to rely on third parties. Traditionally, seed phrases pose a serious risk, as losing or exposing that small piece of paper could lead to the permanent loss of funds.

But Cypherock doesn’t stop there—removing seed phrases is just the beginning. Their solution takes private key security to a new level by decentralizing it, giving users both better recoverability and enhanced security.

The Cypherock Solution

Imagine your private keys are like valuable digital assets. Instead of storing everything in one place, Cypherock uses a method called Shamir’s Secret Sharing to divide your key into five separate parts. These parts are stored on the X1 Vault and four X1 Cards, allowing you to keep them in different locations. To recover your assets, you only need access to two of these five pieces. Whether it’s two cards or a card and the X1 Vault, you’ll always have a backup plan.

What truly sets Cypherock apart is how it avoids the common security flaws found in many mainstream crypto wallets. After learning from the vulnerabilities of popular devices like Trezor and Ledger, Cypherock has designed a system that is virtually unbreakable.

For instance, hackers have successfully breached physical devices like Trezor and Ledger using advanced techniques such as voltage glitching to extract private keys. However, the Cypherock X1 is built differently. Since it doesn’t store a complete private key, even in the unlikely event sophisticated hackers retrieved your device and managed to break in, they still would not have access to a complete private key.

The only risk would be if someone managed to get their hands on two of the five cards or device and knew your pin code. As long as your pin stays private, you can feel confident that your assets are secure.

Beyond security, Cypherock makes crypto transactions easy. A simple tap of a card on the X1 Vault is all it takes to initiate a transaction—no complicated steps or need to expose your private keys to online devices. Plus, it’s compatible with popular software wallets like MetaMask, offering DeFi users the convenience of a software wallet without sacrificing hardware-level security.

What Are The Cypherock Features?

Now that we’ve highlighted some high-level standout features, let’s zoom in and explore the finer details that make Cypherock truly innovative. From enhanced security measures to seedless backups, these innovations are true standouts in the world of crypto wallets.

Paper Backups: A Thing of the Past

Private and public keys are needed for transactions and securing assets. Public keys allow you to receive funds, while private keys serve as your secure password for sending cryptocurrencies. BIP39 helped simplify the complexity of private keys by introducing seed phrases—12, 18, or 24-word sequences. While these phrases are easier for humans to manage, they bring significant security risks.

Traditional backups, often written on paper or engraved on metal, are vulnerable to a range of single-point-of-failure dangers—fire, water damage, theft, or simply being misplaced or marked down incorrectly. Cypherock has completely overhauled this system with the X1, the world’s first hardware wallet to remove the need for seed phrases entirely. Instead, it leverages Shamir Secret Sharing to divide your private key into five distinct pieces, known as shards, which are stored across the X1 device and four X1 cards.

The real magic lies in how these shards work together. With a 2-out-of-5 threshold, you only need two of the five pieces to reconstruct your private key in the event you need to recover your wallet. This adds an extra layer of security while freeing you from the anxiety of traditional backups. What’s more, you can distribute these shards in different physical locations—give one to a trusted family member, keep another in a safe deposit box, or even hide one in your backyard. Cypherock’s approach not only removes the need for paper or metal backups but also decentralizes the risk.

Cypherock is the first to build the Shamir Secret Sharing method directly into the hardware wallet itself, setting a new standard for crypto security.

Cypherock’s Open Source Commitment

Open-source technology has revolutionized web3 wallets by promoting transparency and trust. Wallets like Trezor and Cypherock have adopted this open-source approach, allowing the community to verify the code and ensure its integrity, enhancing trust and transparency. Open-source wallets, such as Cypherock, benefit from the scrutiny of countless developers who can quickly detect vulnerabilities, raising red flags if any issues arise.

In 2023, the crypto world saw the risks of closed-source technology when Ledger faced backlash as they revealed a new recovery system, leading many users to seek alternatives. This incident highlighted the critical importance of open-source transparency for wallet security. However, it’s important to note that open-source projects aren’t without risks. In crypto wallets, dealing with sensitive data and public-facing development can expose vulnerabilities that malicious actors might exploit before patches are implemented.

To strike a balance, Cypherock employs a hybrid security model. While the X1 device’s code is open for public review, ensuring transparency and community trust, the X1 cards’ code remains proprietary to safeguard sensitive private key data. This combination allows for the best of both worlds—open review of wallet operations while keeping the most critical security elements secure. Cypherock’s design minimizes the risks typically associated with open-source wallets, delivering both trust and robust protection.

Cypherock X1 Seed Phrase Vault

The Cypherock X1 can safeguard up to four wallets, each with its unique seed phrase and the option to apply distinct PINs. For instance, a user managing both a software and a hardware wallet with two distinct seed phrases can import these into the Cypherock X1, essentially transforming it into a secure seed phrase vault for optimal seed phrase management for multiple wallets or users.

This means that software wallets like Metamask or Phantom Wallet, which are known to be less secure than hardware wallets, can have their seed phrases stored securely on the X1 Vault, enhancing their security.

The X1 Vault Hardware

The X1 Vault boasts a sophisticated dual-chip design. The STM32L4, serving as the main microcontroller, works alongside the ATECC608A secure element for device authentication and key security. This setup, with ample memory for various cryptocurrencies, is fortified against side-channel attacks. The memory element is worth exploring as some hardware wallets such as the original Ledger Nano S could only store up to three different cryptocurrencies making it unsuitable for altcoin collectors. The Cypherock X1 Vault supports over 8,000 cryptocurrencies so you can hodl until your heart’s content.

The X1 Vault features an OLED display and a 5-way joystick for user interaction. For those who are more technically inclined, the Cypherock docs give us this view of the device’s inner workings:

The X1 Cards are secure, durable, and tamper-proof, running on Javacard OS with an EAL6+ security rating, the same security rating as credit and debit cards. Communication between the MCU and these cards is enabled by the PN532 over NFC, which also supports smartphone connectivity.

Here are the Cypherock specs:

• Size: 3×6.4×1.5 cm
• Weight: 200 gm
• USB Port: USB-C
• Screen: type: OLED Size: 0.96″
• Certifications: CC EAL6+
• Secure elements: ATECC608A (X1 Vault) , NXP JCOP3 (X1 Card)
• Compatibility: Windows, Mac, Linux (current) * and Android, IOS (Future)

The product comes with:

• The X1 Vault
• 4 X1 Cards
• 4 Anti-Theft Card Sleeves
• 1 Lanyard
• 2 Stickers
• User Manual and Warranty Document
• USB-C with an OTG Adapter
• Webcam Cover

A Smarter Way to Backup Your Wallet

Cypherock’s wallet backup system leverages Shamir’s Secret Sharing, offering a smarter way to recover your private keys—no more stressing over lost recovery phrases.

Unhackable by Design: Since Cypherock never stores your seed phrase online, there’s theoretically zero risk of remote hacks, unlike cloud-based or online-dependent wallets.

No Worries About Loss: Forget about physical backups getting lost or stolen. As long as you have access to any two of the five Cypherock shards, you can restore your wallet. Plus, you can order extra cards or devices for added peace of mind.

Distributed for Safety: Cypherock prevents putting your assets at risk by decentralizing your seed phrase, eliminating a single point of failure.

Cryptographic Security: Your seed phrase is split into five parts, each stored separately, allowing you to stash them in various safe spots around the world for ultimate security.

Shamir Secret Sharing: Cypherock’s Key to Unbreakable Security

The Cypherock X1 Vault leverages Shamir Secret Sharing to provide a highly secure, decentralized method of protecting your private keys. This algorithm takes the initial data (your secret) and divides it into N parts, with each part containing a segment of that data.

Cypherock uses a 2-of-5 threshold scheme, meaning any two of the five cryptographic pieces can be combined to recover your private key. This allows users to decentralize their key storage while maintaining easy access to their assets.

The real strength of Shamir Secret Sharing is its balance between security and accessibility. After gathering two of the five parts, the original secret is decoded using Lagrange polynomial interpolation. Although it shares some conceptual ground with multi-signature (multi-sig) wallets, Shamir’s method is off-chain, while multi-sig operates entirely on-chain. Multi-sig requires multiple distinct private keys to authorize transactions, whereas Shamir’s method shards a single private key into multiple parts.

For individual users, Shamir Secret Sharing offers a more user-friendly and secure solution, while multi-sig is often the go-to for enterprise-level security. If you’re interested in a more detailed comparison, feel free to check out this insightful document on Shamir Secret Sharing vs Multi-Sig.

Effortless Wallet Recovery with Cypherock

Recovering your wallet has never been easier. Just tap one of your four X1 Cards on the X1 Vault, and you’re back in business—no exposed seed phrases, no single point of failure, just pure peace of mind. Gone are the days of hiding paper backups around the house, hoping you’ll remember where they are, hoping nobody else will ever find them, hoping they don’t get damaged in a fire or flood, and hoping you will be able to decipher your own handwriting.

It’s natural to be cautious when you hear about a wallet that doesn’t use the traditional mnemonic phrase backup, which is standard in the industry, as there are (rightfully so) concerns about not being able to recover your wallet if your device breaks. However, Cypherock understood this concern and is ahead of the curve. Users can still access their recovery phrase if needed, making it compatible with other wallets for importing and exporting keys, giving users yet another failsafe and guaranteeing that recovering a wallet will be possible regardless of what wallet you choose to recover funds into.

Another big concern for many users is reliance on a single device. What if the wallet breaks or gets lost? Cypherock has thought ahead here too. They’ll soon be releasing an open-source mobile app that allows you to securely recover your assets as long as you have two of the X1 Cards. This way, you’re not locked into the device for future access.

Cypherock Cover: A Groundbreaking Recovery and Inheritance Solution

Cypherock Cover is set to revolutionize crypto asset security by offering a non-custodial, non-KYC, hardware-based recovery service. Launching in Q3 2024, Cypherock Cover addresses two of the most common concerns in digital asset management: PIN loss and inheritance planning—all while maintaining complete user control and decentralization.

Solving Self-Custody Challenges

Self-custody is crucial to the ethos of Web3, but current solutions have shortcomings that leave users vulnerable. Despite hardware wallets being considered the gold standard, they still leave assets exposed to physical attacks, seed phrase mismanagement, and even total loss in the event of death. Cypherock Cover directly addresses these gaps, offering robust solutions for both day-to-day asset recovery and long-term estate planning, all without requiring users to sacrifice privacy or autonomy.

PIN Recovery for Ultimate Peace of Mind

Losing a wallet PIN can be a nightmare, especially for long-term holders who rarely interact with their hardware wallets. Cypherock Cover simplifies this process with a secure, hardware-based PIN recovery system. By using Cypherock X1’s decentralized architecture, your PIN is symmetrically encrypted across your X1 Cards using AES encryption. This ensures that even if your PIN is forgotten, you can recover it without ever exposing your seed phrase or compromising security. The encrypted PIN is stored on Cypherock’s servers but is only decryptable by your own X1 hardware, meaning not even Cypherock can access it.

The PIN recovery process is initiated through the CySync desktop app, where you can authenticate yourself with one of your X1 Cards and an email OTP verification. Once verified, the encrypted PIN is sent to your X1 Vault, where it can be decrypted and displayed. This offers a secure and user-friendly recovery process, ensuring access to your digital assets remains intact without centralized custody.

Estate Recovery for Inheritance

Inheritance planning in the crypto world has long been a challenge. Traditionally, users either hand over sensitive seed phrases to family members or integrate complex, multi-signature solutions, both of which have significant security risks. Cypherock Cover’s estate recovery system provides a simple, non-custodial inheritance solution that doesn’t rely on lawyers, custodians, or other centralized entities.

With Cypherock’s estate recovery, users can set up a nominee who will receive access to their assets in the event of their death or prolonged inactivity. The process is straightforward: users configure a nominee by assigning them one of the X1 Cards and providing an email for notifications. Should the user become inactive for a predetermined period, Cypherock’s system will initiate the recovery process, which includes a cool-down period of 30 days to confirm inactivity. Upon final confirmation, the nominee receives an encrypted message, which, when paired with their X1 Card and CySync app, allows them to recover the necessary PIN and information to access the assets.

The beauty of this system lies in its non-custodial design. Cypherock never has access to the user’s private keys or seed phrase, meaning assets remain protected from insider attacks or external interventions, even in the most extreme cases.

No Single Point of Failure

Both the PIN and estate recovery processes eliminate the traditional vulnerabilities associated with centralized storage or legal interventions. Since Cypherock doesn’t hold custody over user assets, even nation-state actors or subpoenas cannot compromise the integrity of your digital wealth. The system is fully decentralized, and asset recovery is entirely in your hands—or those of your chosen nominee.

Multi-Chain and Interoperable

Cypherock Cover is not limited to specific blockchains or wallets. The service works across multiple chains and wallet setups, ensuring users can manage and recover their assets regardless of their crypto holdings. It is also fully compatible with BIP39, meaning assets stored in other hardware wallets can be recovered using Cypherock if needed. This flexibility ensures that users aren’t locked into one platform and can securely manage all their assets with ease.

A Non-Custodial Future

Cypherock Cover is about maintaining the sovereignty and security of crypto users. Whether recovering a forgotten PIN or ensuring your assets are passed down to the next generation, Cypherock’s non-custodial, hardware-based approach offers unmatched peace of mind. With no KYC requirements, full interoperability, and decentralized architecture, Cypherock Cover is setting a new standard for asset recovery in Web3.

Streamlined Portfolio Management with Cypherock

Managing multiple wallets across different blockchains can be a logistical headache, especially when juggling various tools and platforms. Most existing wallet solutions fall short, forcing users to manage separate portfolios with fragmented tools and often a single seed phrase backup—leading to higher risk and potential confusion.

Cypherock changes the game by offering a unique portfolio management system that allows users to create up to four distinct wallets, each with its own independent seed phrase. This means you can securely manage diverse portfolios spanning various blockchains and assets—all within the convenience of the cySync App.

Simplifying Multi-Wallet Management

Traditionally, wallets like MetaMask, Ledger, and Trezor offer the ability to create multiple accounts within a single wallet. However, all these accounts are tied to one master seed phrase, making it cumbersome to manage and risky if that single seed phrase is compromised. Losing that one phrase could mean losing access to all associated accounts and funds.

With Cypherock, each wallet operates independently, allowing you to segregate funds without the hassle of managing multiple recovery phrases. For example, you can efficiently handle a MetaMask Wallet, Phantom Wallet, and individual wallets for Bitcoin, Ethereum, Solana, and more from a single, unified software interface.

Enhanced Security and Flexibility

Cypherock not only simplifies portfolio management but also strengthens security. By keeping your private keys separate and securely stored, it ensures that transactions are signed and managed within one platform, significantly reducing the risk of key exposure across multiple tools.

• For Web3 Businesses: The ability to maintain separate wallets for business and personal funds is critical. Historically, there have been issues with co-mingling funds *cough* FTX *cough*, leading to legal complications. With Cypherock, businesses can easily track company and personal portfolios separately, all while minimizing the risk of fund mismanagement.
• For Personal Users: Managing personal funds often becomes tricky with multiple portfolios. Cypherock solves this by allowing users to create distinct wallets, each with its own seed phrase, making it easier to segregate long-term holdings from DeFi or trading activities. For instance, you could dedicate one wallet to long-term hodling and another to higher-risk activities like DeFi exposure.

Fortifying Your Assets: Cypherock X1 Security

Let’s explore how the Cypherock X1 Vault provides cutting-edge protection for your digital assets, making it nearly impervious to both remote and physical threats.

Shielded from Remote Hacks

Remote attacks, where hackers target data transmitted to or from the hardware wallet, are a growing concern. These attacks could exploit vulnerabilities in USB connections or manipulate devices interacting with your wallet. Malicious software or firmware updates could also put your funds at risk.

The Cypherock X1 mitigates these threats with a range of robust security features:

Authenticity Check: During setup, a secure provisioning process ensures that both the X1 Vault and X1 Cards are authentic and free from tampering. The cySync app’s authenticity is also verified through an email authentication process, helping prevent supply chain attacks.

Seedless by Design: Unlike many wallets, Cypherock X1 eliminates the risk of phishing attacks by never exposing your seed phrase during wallet initialization. This unique approach makes it much harder for attackers to trick users into revealing sensitive information.

Non-Upgradable Hardware: To protect against internal threats, Cypherock X1 ensures that private keys are never stored on upgradable hardware. While the X1 Vault can be updated, it holds only one key shard, while the four X1 Cards store the remaining shards. This design prevents rogue updates and ensures firmware integrity.

Protector Sleeve: Each X1 card comes with a protective sleeve that blocks electromagnetic fields. This ensures NFC-enabled cards can’t be accessed by attackers trying to steal data, much like the protection offered for contactless bank cards.

Protecting Against Physical Threats

While digital threats are a major concern, physical attacks—like the infamous “$5 wrench attack,” where an attacker physically coerces someone into revealing their private keys—are a real-world danger. Cypherock X1 is designed to mitigate these risks through several key protective measures.

The $5 Wrench Attack: Robust Protection

A $5 wrench attack refers to a situation where someone uses physical force to extract private keys or demand funds. Cypherock employs multiple strategies to safeguard against this threat.

Geographical Separation of X1 Cards: By storing the X1 Cards in separate physical locations, Cypherock increases the difficulty and risk for attackers. Even if one card is obtained, two are required to unlock the wallet, making it much harder to gain access without significantly increasing the time and effort involved.

Multiple Wallets for Extra Protection: Cypherock X1 allows you to create up to four independent wallets, each with its own security setup. If one wallet without PIN protection is compromised, others with PIN protection remain secure. The system uses an exponential time function, making it virtually impossible for attackers to guess the alphanumeric PINs in a reasonable timeframe.

Passphrase Protection: Adding a passphrase alongside your PIN further strengthens security. This additional phrase is combined with your seed phrase to generate an entirely new wallet, meaning that even if a PIN is compromised, the passphrase adds another crucial layer of defense, keeping your funds safe.

Fortifying Against Brute Force PIN Attacks

Brute force attacks, where hackers systematically guess a wallet’s PIN, are a significant threat to crypto security. Cypherock X1 takes several advanced steps to protect users from unauthorized access through brute force attempts.

Alphanumeric PIN for Stronger Security: Unlike many wallets that use simple numeric PINs, Cypherock allows users to set an eight-digit alphanumeric PIN. This vastly increases the number of possible combinations, making it exponentially harder for hackers to guess the correct PIN.

CyLock Proof-of-Work System: To further counter brute force attempts, Cypherock implements CyLock, a proof-of-work system designed to increase the wallet’s lock time after each incorrect PIN guess. The more incorrect attempts, the longer the lock duration becomes. With enough wrong guesses, the time lock could extend to days, weeks, or even years—making brute force attacks impractical.

Secure PIN Storage: Cypherock adds another layer of security by ensuring the PIN is never directly stored on the X1 Vault. Instead, once a PIN is set, the cryptographic data is encrypted and stored in the non-volatile memory (NVM) of the STM32 microcontroller. A nonce stored on the X1 cards acts as a “salt,” working in conjunction with the encrypted PIN hash, making decryption impossible without the correct PIN.

Guarding Against Evil Maid Attacks

An Evil Maid Attack involves gaining unauthorized access to sensitive information by physically tampering with a device in the owner’s absence. Typically, this attack sees a hacker installing malicious software or replacing hardware components to steal cryptographic keys, leading to unauthorized access to wallets and funds.

Cypherock X1 implements several critical defenses to prevent this type of attack:

Ultrasonic Welding for Tamper Resistance: The X1 Vault is ultrasonically welded, meaning that any attempt to physically open or tamper with the device would leave visible signs of damage. This makes it extremely difficult for attackers to compromise the wallet discreetly, giving users confidence that their device remains secure.

Signed Official Firmware: Cypherock protects against malicious firmware alterations by using signed official firmware. During the provisioning process, Cypherock signs the firmware with proprietary keys, allowing users to verify the authenticity of their X1 Vault. This ensures that only legitimate firmware can operate on the device, protecting against unauthorized updates or malicious software installation.

No Single Point of Failure: To further safeguard against physical breaches, Cypherock eliminates the traditional single point of failure for private keys. By leveraging Shamir Secret Sharing, the private key is cryptographically split into 5 parts. This means that even if a hacker gains access to the X1 Vault or one X1 Card, they cannot access the full private key. This architecture significantly raises the difficulty for attackers attempting to steal your assets, as multiple independent parts are needed to compromise the wallet.

Flash Attacks

Flash attacks target a wallet’s firmware by replacing legitimate software with malicious versions, granting attackers access to private keys and sensitive data. Cypherock X1 employs multiple safeguards to protect against such threats and ensure firmware integrity.

Immutable Bootloader Code: The X1 Vault is equipped with an immutable bootloader, a crucial line of defense. This bootloader stores the firmware version history and remains unaffected by factory resets. During any firmware upgrade, it checks the new version against the last installed one and aborts the process if the version is lower, preventing downgrades that could introduce vulnerabilities.

No Unsigned Firmware: Cypherock X1’s bootloader prohibits the installation of unsigned firmware, ensuring only authorized software can run on the device. The upgrade package must include a signed header, two verified signatures, and the firmware binary itself. If the signatures cannot be verified, the upgrade fails, protecting your device from potentially malicious firmware.

Secure Provisioning Mechanism: To ensure that both the X1 Vault and X1 Cards are authentic and untampered, Cypherock implements a provisioning process during setup. This process verifies the integrity of the hardware, safeguarding against compromised devices or hardware modifications. By ensuring the authenticity of the hardware from the beginning, Cypherock significantly reduces the risk of a successful flash attack.

Side Channel Attack

A side-channel attack targets the physical implementation of cryptographic systems, like hardware wallets, by exploiting information leaks through channels such as power consumption or electromagnetic emissions. Cypherock X1 integrates several security measures to prevent such attacks.

SCA-Protected PIN Verification: To prevent side-channel attacks, Cypherock ensures that PIN verification occurs entirely within the EAL 6+ certified X1 Card environment, not on the device itself. This keeps your PIN safe from potential leaks during verification and blocks attackers from obtaining any meaningful data through physical means.

Shamir’s Secret Share: The X1 Vault stores only 1/5 of Shamir’s secret share, and even that can be encrypted with the user’s PIN. This design ensures that even if an attacker manages to physically access the X1 Vault, they will not have access to the complete private key. The decentralized storage of cryptographic shares enhances security against side-channel attacks.

Secure Data Transmission with X1 Cards: When the X1 Vault communicates with an X1 Card, the card’s data—such as the secret share—undergoes encryption with a random IV (Initialization Vector) generated on the X1 Card. This data is then encrypted with a pairing key, making it extremely difficult for adversaries to reverse-engineer communications between the vault and the cards.

Temporary Private Key Storage: For added security, the private key is regenerated on the device only when necessary for transactions. Once the transaction is complete, the private key is wiped from local memory buffers, minimizing the key’s exposure and preventing it from being left in the device’s memory where it could be extracted.

Time-Invariant Memory Comparison: The X1 Vault’s bootloader uses time-invariant memory comparison software logic, which prevents attackers from measuring variations in memory access times—a common method in side-channel attacks—during the firmware boot process. This ensures consistent memory comparison, reducing vulnerability to timing attacks.

Supply Chain Attack

A supply chain attack targets hardware wallets by compromising their production or distribution processes. Cypherock implements robust defenses to protect both the software and hardware integrity of the X1 system.

Software Security: Cypherock ensures users download the cySync app from official sources like the Cypherock website or GitHub, reducing the risk of malware from unofficial sites.

Hardware Integrity: The X1 Vault undergoes a secure provisioning process, which detects any malicious changes in the hardware or firmware. This guarantees that the device hasn’t been tampered with during production or transit.

Authentication Protocols: Before use, the X1 Vault and X1 Cards authenticate each other, establishing an encrypted session. If either device fails to verify as an authentic Cypherock product, the authenticity result fails, preventing unauthorized devices from interacting.

Unique Key Provisioning: Each X1 Vault is provisioned with unique private-public key pairs before shipping, ensuring that only authorized devices can authenticate and pair via NFC. This process involves signature verification by Cypherock’s server.

Generating the 24-word Secret Phrase

Cypherock generates 256-bit entropy using FIPS-compliant True Random Number Generators (TRNG) in both the ATECC608 secure element and the STM32L4 microcontroller. Each independently produces 32 bytes (256 bits) of entropy, and they are combined using XOR, ensuring no single component can introduce vulnerabilities.

Unlike traditional wallets, Cypherock applies Shamir Secret Sharing at the entropy level, splitting the 256 bits into 5 parts stored across the X1 Vault and 4 X1 Cards. The 2/5 threshold ensures that any two components can reconstruct the seed phrase, minimizing the risk of a single point of failure.

What Happens if Cypherock Goes Out Of Business?

Cypherock’s design ensures that users always retain control of their assets, even if the company goes out of business. Though Cypherock doesn’t rely on traditional recovery phrases for security, it remains BIP39 compatible, the standard used by most wallet providers. This means users can import, manage, and export seed phrases if necessary.

While exporting your seed phrase reduces Cypherock’s enhanced security, it’s useful if you plan to switch to another wallet. The process to view the seed phrase is straightforward:

1. Select the wallet from the main menu.
2. Navigate to ‘View Seed’ in the menu.
3. Enter your wallet’s PIN (if set).
4. Tap one of your Cypherock cards on the device to view the seed phrase.

Cypherock users can scroll through and view the full seed phrase for export if needed.

Audited by Keylabs

Keylabs is a renowned security firm known for finding vulnerabilities in both Trezor and Ledger devices. Keylabs is well-respected in the crypto space for their dedication to whitehat hacking discoveries, uncovering flaws in devices that are trusted by millions of users.

Cypherock took a bold step by inviting Keylabs to audit their hardware wallet, demonstrating their confidence in its security. The result? A glowing review that reaffirms Cypherock’s strength in safeguarding digital assets. As mentioned earlier, we began this article with a quote from Keylabs that succinctly captures their findings.

Getting a thumbs-up from one of the most respected security firms in the crypto industry is a strong indicator of Cypherock’s robust security measures. Here’s our interpretation of the report, which highlights Cypherock’s position as one of the most secure hardware wallets on the market.

Cypherock Hardware: Secure by Design

The Keylabs report points out a potential security vulnerability in the consumer-grade STM32L4 microcontroller used in Cypherock’s hardware. However, Cypherock’s design approach effectively mitigates this risk. Keylabs explains that by pairing the STM32L4 with the ATECC608A microchip—both secured and provisioned during manufacturing—the attack surface is significantly reduced.

In practical terms, this means an attacker cannot simply replace the STM32L4 with a malicious version, as the microcontroller is tightly paired with the ATECC608A via unique pairing keys generated during manufacturing. This makes tampering with either component nearly impossible. Additionally, there are no publicly documented attacks against either the STM32L4 or ATECC608A, further enhancing Cypherock’s security.

Protection Against Firmware Vulnerabilities

Keylabs also highlights the risks associated with firmware vulnerabilities, especially in hardware wallets’ bootloaders. However, Cypherock’s use of Shamir Secret Sharing for cryptographic seed splitting adds another layer of protection. To compromise a Cypherock wallet, an attacker would need to exploit at least one X1 Card. With the EAL5+ certification and vendor-certified OS of the X1 Cards, along with Cypherock’s JavaCard applet, this kind of attack is highly unlikely.

STM32L4: Less Vulnerable Than Other Microcontrollers

While the STM32 family of microcontrollers is often cited for its vulnerability to exploitation, the STM32L4 used in Cypherock has key advantages. For instance, attackers cannot downgrade the X1 Vault to RDP1 or access RAM due to the absence of an exploitable external Vcore voltage. Additionally, the PCROP-capable STM32L4 is recognized as more secure in practice compared to other STM32 variants, giving Cypherock an edge over many other wallets on the market.

Securing NFC Communication with Encryption:

The X1 Cards communicate with the X1 Vault via NFC, providing a seamless user experience while enabling compatibility with mobile devices and POS systems. Cypherock ensures that NFC communication is fully secured through end-to-end encryption, making it nearly impossible for attackers to intercept valuable information during transmission.

Why Cypherock Chose Javacards Over MicroSD:

Cypherock opted for Javacards instead of SD Cards due to significant security and usability advantages. Unlike SD cards, Javacards support custom logic and NFC, making interactions with smartphones intuitive and secure. Javacards are proven in high-stakes environments like banking, whereas SD cards are more suited for casual data storage.

USB: A Faster and Safer Alternative to QR Codes

Many users have come to appreciate QR code functionality when it comes to crypto wallets, but Cypherock chose a different approach as they felt QR codes are more hype than help. They don’t really boost security and they sure can make the user experience clunky.

• QR codes and data-heavy transactions don’t mix. Transferring heaps of transaction data via QR can be quite slow, whereas USB does it in a flash.
• QR codes can be a playground for phishing fiends, tricking users into scanning dodgy addresses. Plus, let’s face it, most folks don’t double-check addresses when using QR.
• And firmware updates with QR codes? Forget about it. You’d likely have to resort to USB or SD cards anyway.

Non-Upgradeable X1 Cards: A Shield Against Insider Threats

There is always that slim chance of a rogue engineer potentially pushing harmful updates that could swipe your keys. Cypherock counters this with unupgradable X1 Cards, while still ensuring the wallet stays up-to-date with new coins and features.

Private Key Extraction? Not with Cypherock’s Decoupled Architecture!

Many crypto holders were shocked to find out how easy it was to extract information from physical Ledger and Trezor devices.

The Cypherock X1 adopts a decoupled architecture, distinguishing itself from other wallets. Computation takes place within the X1 Vault, while storage is distributed as five cryptographic parts among the X1 Vault and four X1 Cards. Notably, the X1 Vault refrains from permanently storing entire private keys or seed phrases. Instead, it retains user-created wallet names and an encrypted cryptographic part (excluding MAC and nonce) for each wallet in its flash memory.

Upon wallet creation or restoration on the X1 Vault, the ENT, as detailed earlier, undergoes sharding, and the resulting shards are transmitted to the X1 Cards. During the reconstruction phase from the X1 Cards, the privately generated key from the threshold shards is temporarily stored in the X1 Vault’s RAM. This storage is transient, as the private keys persist only until the transaction is signed or the user records the seed phrase.

Shutting down the X1 Vault at this juncture erases private key persistence. In a static state, the X1 Vault never retains complete private key information, rendering the information inconsequential even in the unlikely event of a successful attack. Throughout the product lifecycle, the entire private key is never stored in the flash memory of the generic microcontroller, making the extraction of private keys nearly impossible.

Consequently, Cypherock X1 exhibits resistance to physical attacks, a notable advantage over other hardware and software wallets.

WalletScrutiny’s Review of Cypherock

Another respected team, WalletScrutiny, thoroughly analyzed Cypherock, and the findings are worth covering here. WalletScrutiny specializes in evaluating popular wallets, helping users understand what to look for when selecting a secure crypto wallet.

WalletScrutiny assesses wallets using 12 key criteria, and it’s impressive to note that very few wallets pass all 12 tests. For comparison, here are the results for Ledger’s Nano S compared to the above tests of the Cypherock X1.

While passing all 12 tests isn’t a strict requirement for wallet safety. These results highlight the evolving nature of the hardware wallet industry. Early pioneers like Trezor and Ledger laid the groundwork, but newer innovators like Cypherock are pushing the boundaries of security and improving upon earlier technologies. It’s a natural progression as the industry matures and adapts to new challenges.

cySync Desktop: Your Hub for Cypherock Wallet Management

Much like Ledger with Ledger Live and Trezor with Trezor Suite, Cypherock integrates with a desktop application called cySync. The app is well-designed, visually appealing, and serves as a user-friendly interface for managing your funds, portfolios, and seed phrases.

Transacting with cySync is straightforward, making it easy to send and receive assets. While the core functionality works seamlessly. Future enhancements—such as the ability to buy, sell, or swap crypto directly within the app—would be welcome additions. Currently, these features are accessible through Wallet Connect and by interacting with DApps and DeFi platforms like Uniswap. But having everything within the cySync platform would elevate the user experience.

Cypherock Asset Support

Cypherock provides support for an impressive 8,000+ assets. It covers major cryptocurrencies like Bitcoin, Ethereum, Polygon, and Avalanche, along with a wide range of small-cap coins. The wallet offers robust coverage of the ERC20 ecosystem, allowing users to store thousands of assets without facing any memory limitations. For a full list of supported assets, you can visit the Cypherock Coin Support Page.

How Cypherock Stacks Up Against Other Card-Style Wallets

While Cypherock has several advantages over traditional wallets like Trezor and Ledger, it’s important to compare it with other card-style wallets entering the self-custody space, such as Tangem, Gridplus, and CoolWallet. Though all offer card-based solutions, Cypherock’s innovative approaches are notably different.

No Single Point of Failure

Unlike other wallets, Cypherock never stores the complete private key in a single place. Each X1 Card holds only 1 of the 5 Shamir shares, ensuring that no single card contains the entire private key, drastically reducing the risk of compromise. In contrast, many other card-style wallets store the entire key on a single card.

Transaction Signing on the X1 Vault

Another key difference is that Cypherock’s transaction signing occurs on the X1 Vault, not on the card. This allows users to verify transaction details via the Vault’s display in an offline environment before authorizing the transaction. Most other card-style wallets rely on smartphone apps for signing, which can introduce vulnerabilities.

Firmware Updates Limited to the X1 Vault

Cypherock also mitigates security risks by restricting firmware updates to the X1 Vault, never allowing updates to the cards themselves. This prevents compromised smartphones from initiating malicious updates on the card, a potential attack vector with other wallets.

PIN Entry on the X1 Vault

In card-based wallets where the PIN is entered on a smartphone, a hacked smartphone could record the PIN and allow unauthorized transactions. Cypherock solves this by requiring PIN entry on the offline X1 Vault, preventing any potential smartphone-related PIN vulnerabilities. Operations are confirmed manually on the Vault itself, providing true multi-factor authentication.

Three-Factor Authentication

In summary, while card-based wallets offer more security than storing funds on an exchange, they still have limitations—especially if they rely solely on smartphone interfaces. In contrast, Cypherock provides three-factor authentication through the card, the X1 Vault, and the PIN. This layered approach ensures that even if a connected device is compromised, your funds remain secure.

What Makes Cypherock Stand Out

If you’ve made it this far in the review, it’s clear that there’s a lot to like about Cypherock. This wallet represents a major leap forward in crypto security. One of its most impressive features is how it eliminates the single point of failure associated with traditional recovery phrases.

Another standout is Cypherock’s ability to serve as both a portfolio manager and a vault for up to four wallets. The convenience of securely managing multiple wallets in one device adds great value for users and long-term holders.

Additionally, PIN protection allows Cypherock to be shared between users without compromising security. This eliminates the need for everyone to own their own wallet.

Lastly, we really appreciated the thoughtful inclusion of a hard case with each purchase. It offers splash and dust resistance, as well as significant protection from drops and bumps. More importantly, it shields the wallet from electromagnetic waves, acting like a Faraday cage. This level of protection is highly valued by security experts. Cases like this typically sell for $50-$75, making it a valuable addition.

Areas for Improvement

From a security standpoint, there’s not much to critique about Cypherock. However, from a convenience perspective, it would be great to see the cySync app offer additional functionality. Such as the ability to buy, sell, trade, and stake assets directly within the platform.

Cypherock Review: Conclusion

As we conclude our Cypherock review, it’s clear this wallet offers a significant advancement in the self-custody space. We’re impressed with the innovations it brings, particularly how it eliminates the single point of failure from traditional recovery phrases and the inheritance feature is a first of its kind in the crypto industry.

Over the past seven years, I have reviewed multiple wallets and personally used over a dozen of them. Before joining the 99Bitcoins team, I worked for a crypto wallet company. I saw firsthand how easily mishandled recovery phrases could lead to devastating losses. One recurring theme I’ve heard hundreds of times is users losing all their funds through mishandling their recovery phrases.

After evaluating wallets that eliminate recovery phrase vulnerabilities, I find Cypherock’s security features impressive. They offer peace of mind without the stress of managing a recovery phrase. I highly recommend this wallet to anyone looking for high security or considering an additional hardware wallet. It’s a smart choice for those with significant holdings who want to diversify assets across multiple wallets.

Visit Cypherock

Frequently Asked Questions

Is Cypherock Safe?

Yes, Cypherock is a secure option. It eliminates the common risk of seed phrases by decentralizing private keys with Shamir’s Secret Sharing. Your private key is split into five parts, stored across the X1 Vault and four X1 Cards, removing single point of failure risks. The wallet has also passed security audits from both Key Labs and WalletScrutiny.

What types of cryptocurrencies does Cypherock support?

Cypherock supports over 8,000 cryptocurrencies, including major ones like Bitcoin, Ethereum, Polygon, and Avalanche. It also covers the ERC-20 ecosystem, meaning it can store thousands of tokens without running into memory limitations. You can check the full list of supported assets on Cypherock’s website.

How does Cypherock X1 differ from traditional hardware wallets like Ledger and Trezor?

Cypherock X1 eliminates the use of traditional seed phrases, which are a common point of failure in other wallets like Ledger and Trezor. Instead, it uses Shamir’s Secret Sharing to split private keys into five parts. This ensures that no complete key is stored in one location. It also decentralizes key management and makes it easier to recover funds if the device is lost or damaged.

Can Cypherock X1 be used for managing multiple wallets and assets?

Yes, Cypherock X1 allows users to manage up to four distinct wallets on one device. Each wallet can hold different private keys, making it ideal for managing multiple assets. You can securely manage various portfolios while maintaining separate seed phrases for each wallet. This feature adds flexibility for both personal and shared wallet use.

References

• “Shamir’s Secret Sharing.” Wikipedia, Wikimedia Foundation, https://en.wikipedia.org/wiki/Shamir%27s_secret_sharing
• “Cypherock X1 Hardware Wallet.” Wallet Scrutiny, https://walletscrutiny.com/hardware/cypherockx1/
• Keylabs. Cypherock X1 Wallet Audit, https://dl.keylabs.io/keylabs_cypherock_x1_wallet_audit_final.pdf
• “All-in-One Portfolio Manager.” Cypherock X1 Features, Cypherock, https://docs.cypherock.com/cypherock-x1-features/all-in-one-portfolio-manager