Hardware wallet manufacturer Trezor has reduced its number of authorized resellers following supply-chain incidents involving competitor Ledger. The Prague-based company announced on Tuesday via X that it is currently reviewing its vendor relationships as a preventive measure, explicitly stating there is no evidence that Trezor devices have been compromised. This decision comes after Ledger launched an investigation into lost funds reported by customers in Southeast Asia who purchased devices from Malaysia-based reseller CryptoBilis.
Ledger confirmed that one affected user’s device contained an unauthorized hardware implant capable of reading seedphrases when displayed on the screen. While blockchain investigator Specter estimated $86 million had been drained, Ledger stated it has not verified this total or the full number of impacted users, noting that figures circulating online are unconfirmed. Ledger added that only devices sold through CryptoBilis have been linked to these losses and advised those customers not to set up their devices but to contact support instead. CryptoBilis has ceased selling devices.
These events occur amid broader security concerns for hardware wallets this year. In July, hackers stole approximately $120 million in bitcoin from Coldcard users due to a firmware bug causing faulty seed generation. Additionally, Trezor previously reported that data for nearly 81,000 customers was leaked after a third-party fulfillment partner suffered a breach, and scammers exploited Ledger’s payment processor Global-e to send phishing emails earlier in the year.
Trezor’s reduction of resellers highlights the fragility of hardware wallet distribution channels, where physical tampering can bypass digital security measures. By proactively auditing vendors without waiting for direct compromise, Trezor aims to maintain consumer trust in a market increasingly plagued by supply-chain attacks. This move underscores that security assurance now extends beyond firmware integrity to include the provenance of the physical device itself.
The incident involving Ledger and CryptoBilis demonstrates how localized distribution failures can trigger industry-wide defensive posturing. Although Ledger limited the scope of confirmed compromises to specific resellers, the uncertainty surrounding the total value lost creates reputational risk for all manufacturers. Investors and users must recognize that hardware implants represent a sophisticated threat vector that requires rigorous vetting of every intermediary in the sales chain, not just the end product.
