Ledger CEO draws backlash for warning everyone may be hacked

Gauthier made the remarks while discussing the October 29 Binance breach, which affected about $6.3 billion in digital assets. He argued that centralized platforms are especially vulnerable because they hold large sums under one organization, citing FTX, Bybit and other major crypto businesses. He said decentralized asset protection had produced considerably smaller losses.

Asked about roughly $90 million in losses tied to compromised Ledger devices, Gauthier said that amounted to about 0.01% of the assets Ledger protects. He also warned that thefts were rising, citing approximately $9 billion stolen last year and $12 billion so far this year, and pointed to artificial intelligence and quantum computing as emerging threats.

Users on X challenged the remarks after crypto news account Watcher.Guru shared a clip of the interview. Commentator Jeremy (@Jeremybtc) said he would take a large short position against Ledger if it were publicly traded, referring to the company’s claim that it secures more than 20% of all crypto assets. Another user, StarPlatinum (@StarPlatinum_), wrote that Ledger’s business was selling devices so customers would not get hacked. Bert (@bertocinto) called the remark “Weird” for a hardware wallet CEO to make; another user interpreted it as a warning that crypto was becoming more vulnerable.

The criticism comes amid recent reports of compromised Ledger devices. An October investigation found that a hardware implant in a device distributed by a third-party reseller in Southeast Asia could capture a user’s 24-word recovery phrase and send it over a cellular connection. Ledger said the component operated separately from the Secure Element. The company reviewed its distribution and anti-tampering protections and later suspended retail sales through MediaMarkt Saturn in Germany after another reported implant.

On November 10, Sui hardware wallet project Suiball also announced it was closing, citing industry attacks and the Sui Foundation’s decision that continued support carried excessive risks. The project said its device had entered manufacturing, but it would refund preorders. About 80% had been placed on-chain; Suiball planned to send USDC directly to wallets holding the related preorder NFTs within a week.