Ledger CEO warns “everybody will be hacked” after tampered wallets target recovery phrases

Ledger CEO Pascal Gauthier warned that "everybody will be hacked" after attackers inserted hidden components into genuine hardware wallets to capture recovery phrases. The incident shifts the security debate beyond the private key stored in a chip, raising questions about supply-chain integrity for self-custody devices. Traders holding crypto in hardware wallets should reassess their recovery-phrase exposure and device provenance, since compromised self-custody can mean irreversible losses.