Hardware wallet maker Trezor announced it has scaled back its network of resellers in the wake of supply-chain security issues involving its rival, Ledger.
In a Tuesday statement on X, the Prague, Czech Republic-based company noted that it is currently reviewing its remaining vendor partnerships.
The firm emphasized that no problems involving Trezor hardware have been reported. “Let us be very clear: there is not a single piece of evidence that Trezor devices have been compromised,” the business stated.
The company characterized the decision as “a preventive step, taken out of an abundance of caution.”
Last week, rival signing device manufacturer Ledger reported it launched an inquiry after customers in South East Asia reported financial losses following purchases made through CryptoBilis, a Malaysia-based reseller.
Ledger subsequently stated that one of the victimized customers possessed a device containing an unauthorized hardware implant.
Although additional accounts of potentially tampered products have appeared on social media, Ledger clarified on Tuesday that only items distributed via CryptoBilis have been tied to missing funds.
The manufacturer confirmed finding an unauthorized hardware implant in just one impacted customer’s device. According to Ledger, this component was capable of capturing a seed phrase as it displayed on the screen.
While Ledger did not disclose the total financial losses, blockchain investigator Specter estimated that $86 million was drained from affected devices.
“We have not confirmed the total number of affected users or the total value lost,” Ledger wrote on X. “Figures circulating online come from third parties and Ledger has not fully verified them.”
Ledger did not respond to inquiries from Bitcoin Magazine.
Ledger also noted that CryptoBilis has halted device sales, advising anyone who purchased from the vendor to avoid setting up their units and to reach out directly to Ledger’s support team.
Hardware wallets have increasingly faced criminal targeting throughout the year. In July, hackers stole nearly $120 million in bitcoin from users of Coldcard devices due to a firmware flaw.
Canadian company Coinkite, the creator of those devices, explained that the software bug caused faulty seed generation, which enabled attackers to guess user seed phrases.
In a separate event last month, hardware wallet producer Trezor disclosed that the personal data of nearly 81,000 customers was exposed following a data breach at a third-party fulfillment partner.
Earlier this year, scammers also accessed customer data through Global-e, the payment processor for Ledger, in order to distribute phishing emails.
Frequently Asked Questions
Did Trezor devices get compromised?
No, Trezor stated there is no evidence that any of its devices have been compromised.
Why did Trezor reduce its resellers?
Trezor reduced its resellers as a preventive step out of an abundance of caution following supply-chain incidents involving Ledger.
Which reseller was linked to Ledger fund losses?
Ledger linked the lost funds to devices sold through Malaysia-based reseller CryptoBilis.
How much money was reportedly drained from Ledger devices?
Blockchain investigator Specter estimated that $86 million was drained, though Ledger stated it has not fully verified figures circulating from third parties.
