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A developer has acknowledged that a malicious firmware update can “exfiltrate” the seed and record the passphrase of a Trezor device. This revelation emerged during a discussion on Trezor’s official forum. It is weeks after the Ledger Recover feature suggestion that drew even more concern about the security of assets stored in popular hardware wallets. Trezor confirmation The developer emphasized that although open-source software allows for global community scrutiny and the use of hashes and signatures to verify authenticity, these measures do not eliminate the possibility of harmful code being included in an official software release. He said: “The firmware running on your Trezor must have access to private keys – otherwise, it could not sign your transactions. That means if the firmware turned malicious, it could exfiltrate the private keys. The only way to prevent that would be to freeze the device so that it could never be updated – and pray that...

Former Coinbase CTO Balaji Srinivasan predicts that the US government will confiscate private keys from millions of crypto wallets via iPhones and Android devices, claiming that the companies possess remote access to private key shards via firmware ‘backdoors’ and cloud storage. Srinivasan gained credibility for his early warnings about COVID-19. Admittedly, he lost some of that credibility after losing his bet that bitcoin would hit $1 million and this latest prediction is even more difficult to believe: an extralegal confiscation of private property “to remit stolen funds to a cash-hungry federal government.” The would-be Nostradamus calls these tech giants a “systemic risk” to the crypto industry. Balaji prediction comes amid fears of Ledger Recovery His prediction piggybacks on heightened fears of Ledger’s remote access to private key shards . The hardware manufacturing giant released a firmware upgrade for all hardware wallets (except the Nano S) that w...

However, Ledger co-founder refutes Charles Hoskinson ’s claims and red flags open source due to elevated security risks. advertisement Ledger CEO Refutes Cardano Founder Charles Hoskinson On Friday, Cardano founder Charles Hoskison in response to the Ledge controversy said he always choose open-source software whenever possible, saying that “security comes from simplicity.” “People buy hardware wallets to maximize the personal security of their funds. They don’t buy them for daily use or expect an equivalent user experience to hot wallets.” Ledger co-founder Eric Larchevêque took to Twitter on May 20 to further clarify security aspects of closed source, open source, and chain of trust in a hardware wallet. Ledger is a hardware wallet with closed-source firmware. Recommended Articles Crypto Telegram Channels List 2023 [Updated] Must Read ...