Ordinary cryptocurrency users cannot realistically detect sophisticated tampering of hardware wallets, security researcher Joe Grand told Cointelegraph on Tuesday. Grand, who specializes in hardware security and has recovered cryptocurrency from locked wallets, noted that even technical experts do not routinely inspect devices for signs of interference.

The issue gained attention after reports of cryptocurrency losses tied to Ledger devices sold through CryptoBilis, a reseller authorized in Indonesia, Malaysia and the Philippines. Ledger confirmed that one affected device contained an unauthorized implant capable of capturing users’ recovery phrases and transmitting them over cellular networks.

Hardware wallets are designed to store private keys offline, reducing exposure to online attacks that commonly target software wallets. Their widespread adoption has created complex distribution networks, increasing the potential for supply-chain interference. Crypto analyst Mati Greenspan told Cointelegraph that he has never used a hardware wallet despite involvement in the industry since 2013, citing limited perceived value in adding another layer of trust.

Nick Neuman, CEO of Bitcoin security firm Casa, emphasized that eliminating third-party trust is impractical. "There is always an intermediary you will need to trust," he said, recommending that users diversify holdings across multiple providers rather than relying on a single device.

Trezor, a leading competitor to Ledger, conducts authenticity checks and accepts only signed firmware, but acknowledges that these measures cannot fully prevent physical tampering. A spokesperson stated that users should verify packaging integrity and look for irregular markings, though such checks cannot guarantee a device’s untouched status.

In response to the findings, Ledger announced it would suspend sales through resellers in Southeast Asia and Hong Kong. Trezor also indicated plans to reduce the number of authorized resellers as a preventive measure.

Grand proposed design improvements, including transparent casings that expose internal components and tamper-resistant enclosures that would require attackers to replicate housing to conceal modifications. Electronics engineer Dave Jones has advocated similar anti-tamper strategies, though Grand cautioned that such measures would only increase difficulty, not eliminate risk entirely.

The incident has prompted broader industry scrutiny of supply-chain security practices, highlighting the challenges of maintaining trust in hardware-dependent cryptocurrency storage solutions.