Ledger CEO's 'Everybody Will Be Hacked' Comment Fuels Backlash After Confirmed Hardware Tampering

Overview

• Investigators found unauthorized LTE modules hidden inside Ledger devices sold through a third‑party reseller that could read setup screens, capture 24‑word recovery phrases and send them over cellular links without touching the device’s Secure Element.
• Ledger has launched forensic and distribution reviews, suspended some retail sales including at German MediaMarkt locations, and instructed customers to avoid devices from affected sellers while tracing continues.
• CEO Pascal Gauthier said perfect security does not exist and that 'everybody will be hacked at some point,' remarks that prompted strong criticism from users who said the comment undercuts the company’s core trust promise.
• On‑chain researchers and firms have linked coordinated outflows to the tampered devices and estimate thefts in the high tens of millions of dollars, while entities such as Tether have frozen some linked funds and law enforcement works with forensic teams.
• The incident has prompted wider industry consequences, including the closure and refunds from the Sui‑native wallet project Suiball, renewed calls for stricter reseller controls and anti‑tamper design, and heightened attention to future threats such as AI‑assisted attacks and quantum risks.