The conflict began after Mark Karpelès, former CEO of Mt. Gox, accused Ledger of failing to warn users about sophisticated spy implants in hardware wallets. Karpelès claims that these hidden circuit boards can capture 24-word recovery phrases and transmit them to attackers, potentially leading to losses exceeding $90 million.
Karpelès pointed to a security guide published by Ledger on March 6, which featured images of spy chips. While the guide was updated in September, the timing of the initial disclosure remains a point of contention. Ledger has admitted that its Genuine Check feature cannot detect implants if the primary security chip remains functional.
Ledger CEO Pascal Gauthier rejected the accusations, citing the 2014 collapse of Mt. Gox, during which approximately 850 000 Bitcoin were lost under Karpelès' leadership. Gauthier urged Karpelès to focus on facts rather than personal criticism regarding the company's security communication.
In response to the security concerns, Ledger has suspended sales through the reseller CryptoBilis. Meanwhile, competitor Trezor has begun reducing its own network of third-party resellers. These developments highlight ongoing risks for investors, as even authentic hardware wallets may be subject to tampering before reaching the end user.
