Former Mt. Gox CEO Mark Karpelès has criticized Ledger's handling of a hardware wallet supply chain attack involving sophisticated implants, arguing that the company should have issued stronger public warnings after documenting advanced implant designs in March 2026.
Karpelès claims that clearer communication from Ledger could have prevented more than $90 million in losses. He acknowledged that Ledger published an educational article through Ledger Academy in March 2026 recommending purchases directly from Ledger or authorized resellers, but argued that a single article was insufficient for a threat of this severity.
Nature of the Threat
According to Karpelès, multiple reports of implants surfaced in early 2026. Security researcher Joe Grand documented hardware implant designs, including both handmade devices with improvised components and advanced, mass-produced alternatives. Karpelès characterized the situation as requiring immediate action comparable to a critical security emergency.
Hardware wallets protect private keys by isolating them from internet-connected systems. However, compromised hardware can undermine these protections if malicious components interfere with device operations or security checks.
Response and Ongoing Dispute
Ledger CEO Pascal Gauthier responded to Karpelès by referencing his history leading Mt. Gox. Karpelès rejected this criticism, stating that the exchange's past had no bearing on Ledger's current security and disclosure responsibilities.
Karpelès also noted concerns about Ledger's continued characterization of the incident and reported difficulties users faced obtaining responses from the company. He acknowledged some improvements, including greater communication through Ledger's social media channels.
The dispute underscores a distinction in hardware wallet security: publishing technical guidance does not necessarily constitute an urgent customer warning. The controversy highlights the importance of transparent incident reporting when sophisticated attacks threaten devices designed to protect digital assets, as well as the value of purchasing hardware wallets directly from manufacturers or authorized resellers.
