Trezor Confirms Hidden Implants in CryptoBilis-Sold Wallets That Can Steal Recovery Phrases

Trezor has confirmed that three Trezor Safe 5 hardware wallets purchased from reseller CryptoBilis contained unauthorized implants capable of extracting recovery phrases. The implants, consisting of an extra circuit board positioned between the main board and the display, capture the recovery phrase during backup creation or wallet restoration and transmit the encrypted data over mobile networks. A firmware update version 2.13.1 blocks the known implants on supported devices, but cannot protect phrases already captured. Trezor has advised all customers who bought devices from CryptoBilis since March to move funds to new wallets with fresh recovery phrases and to contact support for replacements. The company has also reduced its reseller network by approximately 80 percent following the incident and similar findings reported by Ledger.

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Trezor has confirmed that three Trezor Safe 5 hardware wallets purchased from authorized reseller CryptoBilis contained hidden implants designed to steal recovery phrases. The company examined one device in its laboratory and identified the other two through photographs provided by owners, with no reports of lost funds to date.

How the Implant Works

The implant consists of an additional circuit board placed between the wallet's main board and its screen. It reads the recovery phrase directly from the display during backup creation or when a user restores an existing wallet. The device also captures any passphrase shown on screen, encrypts the data, and transmits it over the mobile network to attacker-controlled servers. If connectivity is unavailable, the implant stores the information and retries transmission until successful.

The implant does not alter the wallet's firmware or Secure Element, making it invisible to standard integrity checks. Trezor released firmware version 2.13.1 for the Safe 7, Safe 5, Safe 3, and Model T, which prevents the known implants from capturing data on updated devices. However, the update cannot protect recovery phrases already intercepted before installation.

Customer Recommendations

  • Move funds to a new wallet using a fresh recovery phrase.
  • Do not restore an old phrase on any device purchased from CryptoBilis.
  • Never set up or enter an existing recovery phrase into an unused wallet from the reseller.
  • Contact Trezor Support for a replacement device; do not weigh or open the wallet, as these checks are unreliable.
  • Never share recovery phrases, even with parties claiming to be Trezor support.

CryptoBilis served as an official Southeast Asian reseller until October 9, when Trezor terminated the partnership. The three affected wallets were purchased between August 20 and September 23. Trezor has examined devices from 48 customers who contacted support and continues laboratory analysis of additional units.

The attack method closely mirrors implants previously discovered in Ledger devices sold by the same reseller, adapted specifically for the Trezor Safe 5 display. Trezor has reduced its reseller network by roughly 80 percent and is investigating whether implants exist outside CryptoBilis channels or other models.

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