Trezor Cuts Resellers After $86M Wallet Tampering Scare, Says Devices Remain Safe

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Key Takeaways:

  • Trezor recently has seen hardware wallet supply chain issues, so it has shortened its list of authorized retailers.
  • According to the company, no proof of any trespass on any Trezor devices.
  • This stems from a recent news report on malicious hardware implants being discovered in Ledger hardware from a reseller.

Trezor is bolstering its supply chain of hardware wallets, reducing the number of resellers authorized to distribute them. The company said that it is making the decision in anticipation of a breach and not as a result of a confirmed breach of any Trezor product.

Trezor Reduces Reseller Network After Supply-Chain Incidents

Trezor says it will engage fewer resellers, in an effort to more closely monitor the partners it is putting its hardware wallet products into the hands of. The firm attributed the action to counter security breaches in the hardware wallet space in the recent past.

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Trezor CCO Danny Sanders also announced that some resellers had been notified that they will no longer be part of Trezor’s authorized sellers from 1st January. In addition, affected resellers were also meant to have their shipments stopped.

Trezor thanked its long-term distribution partners in order to extend access to its wallets, and noted that the new policy applies to companies working with the brand for many years.

Read More: Bits of Gold Breach May Expose 200,000 Crypto Users, But Funds Remain Safe Online

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Trezor Says No Devices Have Been Compromised

One clear point that was set is that there is no evidence of Trezor hardware wallets being compromised.

The difference is significant, since the resellers belong to a report in which competitor hardware wallet provider Ledger is involved with an illegal hardware installation in at least one wallet.

They reported that it was not a typical attack regarding the firmware modification. Malicious hardware was made so as to collect confidential information for the purpose of recovery, and send it outside of the device.

Existing set-up on Trezor is designed to detect tampering, including counterfeiting, and firmware alteration, but a hardware tampering is a new form of a supply-chain threat.

Hardware Wallet Security Moves Beyond Firmware

The incident marks the scope of a problem afflicting self-custody users in general. Even though hardware wallets have secure, offline characteristics, their security can be influenced by how they move from manufacturer to the customer.

A physically tampered with device could outsmart a device that protects primarily against changes in the instruction set software or the firmware. That’s why, instead of making any announcement regarding the wallets, Trezor is putting more focus on reseller supervision.

Read More: Bitget Halts Withdrawals After $351.6M Hot Wallet Incident Hits Crypto Exchange

Users Urged to Check Where Their Wallet Comes From

Trezor has recommended its users to buy devices from the company if at all possible and ensure the products are intact. Users with larger crypto portfolios are further presented with multisignature setups as an option by the firm.

In the case of multisig, multiple keys are needed to validate a deal, which means that in the event of a compromised device, it will be unable to move funds alone. The reseller reduction, therefore, is a security measure for the supply chain and not a reaction to a confirmed hack on Trezor.



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