A new security concern has emerged involving Trezor hardware cryptocurrency wallets after the company received information about a potentially modified Safe 5 device purchased from a Malaysian reseller, CryptoBilis.
According to the report, the wallet's owner believes that a hidden electronic module may have been installed inside the device. The suspected modification could operate similarly to modules previously discovered in altered Ledger hardware wallets, which were reportedly designed to steal users' recovery seed phrases.
Trezor has not yet examined the specific device, and no confirmed cases of cryptocurrency theft from Trezor users have been reported in connection with this incident.
Trezor Investigates a Potentially Modified Safe 5 Wallet
Trezor, a manufacturer of hardware cryptocurrency wallets, received information about a possible modification to its Safe 5 model. The device was reportedly purchased in August from CryptoBilis, a reseller based in Malaysia.
According to the wallet's owner, the suspected built-in module may function in a similar way to the hidden components previously found in modified Ledger devices.
However, Trezor has not yet completed an examination of the reported device. The company has also stated that it has not received reports of user funds being stolen from Trezor wallets in connection with the case.
The investigation is ongoing, and the reported modification has not yet been independently confirmed.
Trezor Advises Users to Create New Recovery Seed Phrases
As a precautionary measure, Trezor has urged customers who purchased its hardware wallets since March 2026 to transfer their funds to a new device and generate a completely new recovery seed phrase.
The company has specifically warned that simply entering an existing seed phrase into another hardware wallet may not provide sufficient protection if the original recovery phrase has been compromised.
A recovery seed phrase is a set of secret words that allows users to restore access to their cryptocurrency wallets. Anyone who obtains this phrase may be able to access and control the associated funds.
For users who do not currently have access to a hardware wallet, Trezor has recommended temporarily using a software wallet or a trusted cryptocurrency exchange.
CryptoBilis Removed from Trezor's Official Reseller List
Following the discovery of modified Ledger devices reportedly sold through CryptoBilis, Trezor removed the Malaysian reseller from its official list of authorized sellers.
The company examined four wallets purchased from this reseller but did not find signs of tampering in those devices. Nevertheless, the investigation remains ongoing.
This development highlights the importance of purchasing hardware wallets only through trusted and officially recognized distribution channels.
Previous Ledger Incident Raises Further Security Concerns
The latest Trezor report follows a similar incident involving Ledger hardware wallets sold through the same Malaysian reseller.
In early October 2026, hidden electronic modules designed to steal recovery seed phrases were reportedly discovered in Ledger devices distributed through CryptoBilis.
External estimates suggested that losses associated with the large-scale theft exceeded $90 million.
Ledger stated that an organized criminal group had purchased genuine devices, installed concealed electronic components inside them, and then returned the modified wallets to the market through official resellers.
The company also emphasized that its internal systems had not been compromised.
The similarities between the reported Ledger and Trezor incidents have raised concerns about the security of hardware wallet supply chains and the possibility of physical tampering before devices reach customers.
How Cryptocurrency Users Can Protect Their Wallets
Hardware wallets are designed to keep private keys offline, reducing exposure to many online threats. However, the reported incidents demonstrate that physical security and the integrity of the device itself are also important.
Cryptocurrency users should consider several precautions:
- Purchase hardware wallets directly from manufacturers or officially authorized resellers.
- Check the device and packaging for signs of physical tampering.
- Follow the manufacturer's official security and authenticity verification procedures.
- Never share a recovery seed phrase with another person or enter it into an untrusted website or application.
- If a device may have been compromised, follow the manufacturer's official recovery and migration instructions.
- Generate a completely new recovery seed phrase when moving funds from a potentially compromised wallet.
Users should remember that a recovery seed phrase provides access to their funds. Protecting it is just as important as protecting the hardware wallet itself.
What This Means for Hardware Wallet Security
The reported incidents involving Ledger and Trezor highlight a security risk that extends beyond software vulnerabilities and online attacks.
Even devices designed to protect cryptocurrency offline may be exposed to threats if they are physically modified before reaching their owners.
Although Trezor has not confirmed that the reported Safe 5 device contains a malicious module, the ongoing investigation reinforces the importance of trusted suppliers, secure distribution channels, and careful device verification.
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Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or legal advice. Security incidents and investigations may develop over time. Always consult official manufacturer announcements before taking action involving your cryptocurrency wallets.
Source: BanksNews.am — Original report
