Trezor Cuts Authorized Resellers After Ledger Wallet Tampering Reports

Trezor plans to reduce its authorized reseller network following reports of malicious hardware implants in Ledger wallets. The company describes the move as a preventive measure to strengthen supply-chain security and protect cryptocurrency users. Although Trezor reports no evidence of compromised devices, it will stop supplying certain resellers and remove them from its authorized list starting January 1.

Trezor Tightens Supply-Chain Security

Chief Commercial Officer Danny Sanders notified selected resellers about their removal and confirmed that shipments would stop Tuesday. Additionally, Trezor says its existing security checks detect counterfeit devices and modified firmware. However, the Ledger incident involved an implant that reads screen information without changing firmware.

The compromised Ledger wallets came through Southeast Asian reseller CryptoBilis. The implants reportedly captured recovery phrases and transmitted them through cellular networks. Consequently, CryptoBilis suspended hardware wallet sales while European retailer MediaMarkt removed Ledger products from its stores and online platforms.

Crypto Wallet Losses Remain Unclear

Significantly, blockchain investigators estimate that affected users may have lost between $72 million and $86 million. Ledger has not confirmed the total number of victims or the final financial losses.

Moreover, Trezor advises customers to purchase wallets directly from its website and inspect security seals before opening packages. The company also recommends multisignature setups using devices from different manufacturers. Hence, users can reduce the risk of one compromised device gaining control over their funds.

Related: Coinbase Proposes Bitcoin Security Measures Against Future Quantum Threats