Hardware Wallet Maker Trezor Issues Alert to CryptoBilis Customers Over Implant Concerns
Hardware wallet manufacturer Trezor advises CryptoBilis customers to transfer their cryptocurrency holdings following the discovery of a suspected hardware implant in a Safe 5 wallet. No confirmed losses have been documented at this time.
Hardware wallet manufacturer Trezor has issued an advisory to customers who purchased its cryptocurrency storage devices from previously authorized reseller CryptoBilis beginning in March, recommending they transfer their digital assets following the discovery of a suspected implant within a Safe 5 hardware wallet.
The company announced on Friday that an Indonesian customer had discovered an unauthorized circuit board embedded within a Trezor Safe 5 device that was purchased through the Tokopedia marketplace in August. The report indicates that the suspected implant has the capability to intercept information shown on the wallet's display screen, which includes sensitive wallet recovery phrases, and subsequently transmit this data via a cellular network connection.
The company stated that it has not yet physically inspected the device in question and has not received any reports indicating actual fund losses related to this incident.
We haven't had the device in our lab yet, but we're treating the report as credible, and we'd rather warn people now than wait for confirmation and find out someone lost their funds in the meantime.
Danny Sanders, Trezor chief commercial officer
A company spokesperson for Trezor characterized the volume of sales conducted through the reseller as "very small" while choosing not to disclose specific numerical data.
The spokesperson further indicated that Trezor has yet to determine the location where the suspected device tampering took place and is currently conducting a review of its hardware security measures, recognizing that current protective measures, which include security seals and specialized packaging, are insufficient when used independently.
Ledger tampering and earlier warnings to Trezor
This security alert comes after reports emerged on Oct. 9 regarding cryptocurrency fund losses associated with Ledger hardware wallets that were distributed through CryptoBilis. Ledger has verified the presence of an unauthorized hardware implant in one of the compromised devices.
Security expert and researcher Joe Grand had previously disclosed to Cointelegraph that he provided warnings to Trezor in August concerning tampered Trezor One and Model T hardware wallets that had been acquired through unauthorized vendors operating on TikTok and Facebook platforms. Trezor clarified that its previous statement regarding the absence of evidence of compromised devices was specifically limited to new hardware wallets distributed through authorized reseller channels.
The company explained at that time that its device setup verification processes were designed to detect counterfeit devices and altered firmware, whereas the implant discovered in the CryptoBilis-distributed Ledger wallet was capable of reading the screen display without making modifications to the firmware. When an attacker obtains a stolen recovery phrase, they can restore a wallet on a separate device and gain the ability to transfer all of its funds.
On Oct. 13, Trezor made public its intentions to scale back its reseller distribution network.