Trezor urged customers who purchased hardware wallets through former authorized reseller CryptoBilis since March to transfer their funds following a report of a suspected Safe 5 implant. Trezor said on Friday that a customer in Indonesia reported finding an unauthorized circuit board in a Safe 5 purchased on Tokopedia in August. The customer's report said the suspected implant could capture information from the screen, including wallet recovery phrases. The report said the suspected implant could send that information through a cellular network.
Trezor said the company had not examined the device and had received no reports of related losses. Trezor chief commercial officer Danny Sanders said the company considered the report credible despite not yet having the device in a laboratory. Sanders said Trezor preferred to warn customers before confirmation rather than risk customers losing funds while waiting. A Trezor spokesperson characterized sales through CryptoBilis as very small but declined to disclose figures.
The spokesperson said Trezor had not determined where the suspected tampering happened. The spokesperson said Trezor was reviewing the company's hardware protections. The spokesperson acknowledged that existing safeguards, including packaging and seals, could not provide sufficient protection by themselves.
Reports of cryptocurrency losses involving Ledger wallets purchased through CryptoBilis emerged on October 9. Ledger confirmed that one affected device contained an unauthorized hardware implant. Security researcher Joe Grand previously said Grand had warned Trezor in August about tampered Trezor One and Model T wallets. Those wallets had been purchased from unauthorized sellers through TikTok and Facebook. Trezor said an earlier statement that the company had no evidence of compromised devices concerned only new wallets purchased through authorized resellers.
Trezor said at the time that the company's setup checks were designed to detect counterfeit devices and altered firmware. However, the implant discovered in a Ledger device sold through CryptoBilis captured screen information without modifying the firmware. An attacker with a stolen recovery phrase can restore a wallet on a different device and transfer the wallet's funds. Trezor announced on October 13 that the company planned to shrink its reseller network.
Trezor Warns Users Who Bought Wallets via CryptoBilis Over Suspected Implants
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Summary
Trezor has warned users who bought Safe 5 wallets via former reseller CryptoBilis since March to move funds. A customer in Indonesia found an unauthorized circuit board in a Safe 5 purchased on Tokopedia in August, possibly transmitting recovery phrases via a cellular network. Trezor considers the report credible and is reviewing hardware protections. The company plans to reduce its reseller network. Recent inflation data has not affected the urgency of the alert. A network upgrade is also being considered to enhance security.
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