Ledger vs. Trezor: Which Hardware Wallet Has the Best Track Record Against Physical Hacks?

If you’re navigating the world of cryptocurrencies, you’ve likely heard that hardware wallets are the gold standard for securing digital assets. Devices like Ledger and Trezor are often touted as the ultimate guardians of your crypto holdings. But here’s the catch: while these wallets are designed to keep your private keys safe from online threats, they aren’t impervious to physical attacks.

Imagine this scenario: someone gains physical access to your hardware wallet. Could they extract your private keys and drain your funds? It’s a chilling thought, but one worth exploring, especially as the value of cryptocurrencies continues to soar and makes them attractive targets for theft.

This article delves into the physical security of two leading hardware wallets: Ledger and Trezor. We’ll examine their design philosophies, past vulnerabilities, and how they’ve responded to security challenges. Our goal is to provide you with a comprehensive understanding of which wallet offers better protection against physical hacks.

Why Physical Security Matters

In the crypto realm, the mantra is “not your keys, not your coins.” Hardware wallets are designed to keep your private keys offline, safeguarding them from online hacks. However, if an attacker can physically access your device, they might exploit vulnerabilities to extract your keys. This isn’t just a theoretical risk; there have been documented cases where physical attacks compromised hardware wallets.

For instance, in 2020, security researchers demonstrated a method to extract the seed phrase from a Trezor wallet by physically accessing the device and exploiting its hardware. Such incidents underscore the importance of robust physical security in hardware wallet design.

Ledger vs. Trezor: A Brief Overview

Ledger devices, like the Nano S and Nano X, incorporate a Secure Element (SE) chip—a tamper-resistant hardware component used to store sensitive data securely. This chip is designed to withstand various attacks, including side-channel and fault injection attacks. Ledger’s proprietary operating system, BOLOS, runs on this chip, adding an extra layer of security.

Trezor, on the other hand, has traditionally used general-purpose microcontrollers without a dedicated Secure Element. Their design emphasizes open-source principles, allowing the community to inspect and audit the code. While this transparency has its advantages, it also means that certain security features rely heavily on software implementations, which might be more susceptible to physical attacks.

The Stakes Are High

The rise in cryptocurrency values has made hardware wallets lucrative targets. Beyond technical exploits, there’s a growing trend of “wrench attacks,” where individuals are physically coerced into revealing their wallet credentials. Such incidents highlight the need for hardware wallets to offer not just digital security but also robust defenses against physical threats.

What to Expect in This Article

We’ll explore:

• The architectural differences between Ledger and Trezor.
• Documented physical vulnerabilities and how each company addressed them.
• The role of Secure Elements in enhancing physical security.
• Best practices for users to protect their hardware wallets.

By the end, you’ll have a clearer picture of which hardware wallet stands stronger against physical hacks and how you can bolster your own crypto security.

What Is a Crypto Hardware Wallet?

A crypto hardware wallet is a physical device designed to securely store the private keys that grant access to your cryptocurrency holdings. Unlike software wallets, which are connected to the internet and thus more susceptible to online threats, hardware wallets keep your private keys offline, providing a robust layer of security against hacking attempts.

Core Functionality

The primary function of a hardware wallet is to isolate your private keys from potentially compromised devices. When you initiate a transaction, the hardware wallet signs it internally using your private key, ensuring that the key never leaves the device. This process significantly reduces the risk of your keys being exposed to malware or phishing attacks.

Advantages of Using a Hardware Wallet

• Enhanced Security: By keeping your private keys offline, hardware wallets offer superior protection against online threats.
• User Control: You maintain full control over your private keys, eliminating reliance on third-party custodians.
• Compatibility: Many hardware wallets support multiple cryptocurrencies, allowing you to manage various assets from a single device.

Considerations

While hardware wallets provide robust security, they are not entirely immune to risks. Physical theft or loss of the device can pose challenges. Therefore, it’s crucial to keep your hardware wallet in a secure location and to back up your recovery seed phrase in case the device is lost or damaged.

Overview of Ledger and Trezor Hardware Wallets

Ledger’s Architectural Model

Secure Element (SE) Integration

Ledger’s hardware wallets, including the Nano S, Nano X, and Stax, are built around a dual-chip architecture comprising a Secure Element and a general-purpose microcontroller unit. The SE is a tamper-resistant component designed to securely store cryptographic secrets and perform sensitive operations like key generation and transaction signing. The SE operates independently, ensuring that private keys never leave the secure environment, even if the MCU or connected host device is compromised.

BOLOS Operating System

Running on the SE is Ledger’s proprietary operating system, BOLOS. It manages applications on the device, ensuring each operates in isolation, thereby preventing potential cross-application vulnerabilities. This design enhances security by containing any potential breaches within a single application, without affecting others.

Microcontroller Unit (MCU) Role

The MCU in Ledger devices acts as an interface between the SE and external components like the USB or Bluetooth connection, screen, and buttons. It handles input/output operations but does not access sensitive data or perform cryptographic functions. This separation ensures that even if the MCU is compromised, the SE—and thus your private keys—remain secure.

Security Certifications

Ledger’s SEs have achieved high security certifications, such as Common Criteria EAL5+ and EAL6+, indicating rigorous testing against various attack vectors, including side-channel and fault injection attacks.

Trezor’s Architectural Model

Microcontroller-Centric Design

Trezor’s earlier models, like the Model One and Model T, utilize a single general-purpose microcontroller without a dedicated Secure Element. In these devices, the MCU handles all operations, including key storage and transaction signing. While this design simplifies the architecture and aligns with Trezor’s commitment to open-source hardware and software, it also exposes the device to potential physical vulnerabilities, as general-purpose MCUs lack the tamper-resistant features of Secure Elements.

Introduction of Secure Elements in Safe Series

Recognizing the need for enhanced physical security, Trezor introduced the Safe 3 and Safe 5 models, incorporating a Secure Element alongside the MCU. However, in Trezor’s architecture, the SE primarily serves to enhance PIN protection and verify device authenticity, while the MCU continues to handle key storage and transaction signing. This means that, despite the addition of an SE, critical operations still occur on the less secure MCU.

Open-Source Commitment

Trezor maintains a strong commitment to open-source principles, ensuring that both hardware schematics and firmware are publicly available for review. This transparency allows for community auditing and fosters trust among users. However, it also means that potential vulnerabilities are accessible to malicious actors, emphasizing the importance of robust hardware security measures.

Security Certifications

The Secure Elements used in Trezor’s Safe series have achieved Common Criteria EAL6+ certification, indicating a high level of security assurance. However, since the SE does not handle key storage or transaction signing, the overall device security still heavily relies on the general-purpose MCU, which lacks such certifications.

Historical Vulnerabilities in Trezor

Voltage Glitching Attacks on Trezor Safe 3 and Safe 5

In early 2025, researchers from Ledger’s Donjon team discovered a vulnerability in Trezor’s Safe 3 and Safe 5 models. The issue was due to cryptographic operations and key storage still being managed by the MCU rather than the SE. By manipulating the device’s power supply, attackers could bypass integrity checks and potentially access sensitive data.

Unciphered’s Physical Hack of Trezor Model T

In 2023, Unciphered demonstrated that a Trezor Model T could be physically hacked. Exploiting vulnerabilities in the STM32 microcontroller, they extracted both the seed and PIN using specialized lab techniques.

Kraken’s Voltage Glitching on Trezor One

Kraken Security Labs, in 2020, showed that the Trezor One was vulnerable to glitching attacks that enabled full seed extraction. This was due to its lack of a Secure Element, relying entirely on a microcontroller with insufficient physical protections.

Other Side-Channel Attacks

Trezor devices were found to be vulnerable to side-channel attacks, such as RAM freezing and electromagnetic analysis, all of which could be performed if the attacker had temporary access to the device.

Historical Vulnerabilities in Ledger

Side-Channel Attacks on Ledger Nano S

In 2018, a side-channel vulnerability was discovered in Ledger Nano S. The flaw involved communication between the Secure Element and the microcontroller. Though it required deep technical knowledge and physical access, Ledger promptly addressed the issue with a firmware update that hardened communication pathways.

Supply Chain Attacks and Tampering Risks

Ledger devices have been subject to real-world tampering in the supply chain. In some cases, attackers intercepted devices, modified them, and then repackaged them to look untampered. The modified firmware then prompted users to enter their seed phrase, which was sent to the attacker. Ledger responded by improving packaging, enhancing supply chain integrity, and educating users about device authenticity checks.

Data Breach and Its Indirect Consequences

While not a hardware-level breach, Ledger experienced a major data breach in 2020 that exposed customer emails, addresses, and phone numbers. This led to a surge in phishing attacks targeting users with fake Ledger emails. While private keys were never compromised, the breach emphasized the importance of user vigilance even when using secure hardware.

Firmware Exploitation Risks

Although Ledger employs secure firmware signing mechanisms, any firmware-based security model is only as secure as its update process. Ledger enforces digital signature checks on firmware, ensuring only authenticated updates are installed. So far, no malicious firmware has bypassed this integrity check.

Comparative Analysis: Ledger vs. Trezor in Physical Security

Security Architecture

Ledger integrates a dual-chip architecture with a Secure Element handling key management and cryptographic operations. Its microcontroller is only an intermediary for I/O functions. In contrast, Trezor relies heavily on general-purpose MCUs, even in its Safe 3/5 series, where the Secure Element assists in PIN and anti-tamper functions but does not fully handle cryptographic operations.

Historical Track Record

Ledger has maintained a stronger track record, with no publicly documented physical attacks resulting in seed extraction from any of its SE-based devices. Trezor, however, has multiple confirmed laboratory exploits that were successful in extracting seeds from both older and newer models, especially when key operations remained on the MCU.

Transparency vs. Obscurity

Trezor is fully open-source, which supports trust-building and community auditing but may also expose attack surfaces to skilled adversaries. Ledger takes a closed-source approach for critical components, such as firmware and SE architecture, aiming to keep security mechanisms less accessible to attackers.

Verdict

If your primary concern is resisting physical access attacks by sophisticated adversaries, Ledger’s use of a certified Secure Element for all key operations gives it the edge. Trezor’s newer models have improved but still rely on architectures that historically left them more exposed to fault injection and side-channel attacks.

Secure Elements: The Cornerstone of Hardware Wallet Physical Security

A Secure Element is a tamper-resistant chip purpose-built to handle cryptographic operations and securely store private keys. It resists side-channel attacks, fault injection, and invasive probing through both hardware-level design and software-level security.

Ledger integrates the Secure Element directly into the heart of its security model. Private keys never leave the SE, and all signing operations occur within this tamper-resistant environment. Additionally, the BOLOS operating system runs inside the SE, managing isolated apps.

Trezor’s Safe series has introduced Secure Elements, but in a limited role. They help with device authentication and PIN verification, but core operations like key storage and transaction signing still occur on the microcontroller, leaving critical functions outside the SE’s protection.

Ultimately, Secure Elements act as a security vault within your device. Ledger treats them as such. Trezor treats them as an assistant.

Best Practices for Securing Your Hardware Wallet Against Physical Attacks

Safeguard Your Recovery Seed

Your recovery seed (also known as a seed phrase) is the master key to your crypto assets. If someone gains access to it, they can control your funds.

• Store Offline: Never store your seed phrase on internet-connected devices or cloud services.
• Use Durable Materials: Consider engraving your seed phrase on metal plates to protect against fire and water damage.
• Secure Storage: Keep your seed phrase in a secure location, such as a bank safety deposit box or a home safe.
• Avoid Sharing: Never share your seed phrase with anyone. No legitimate service will ask for it.

Set a Strong PIN and Utilize Passphrases

A Personal Identification Number (PIN) adds an essential layer of security:

• Complexity: Choose a PIN that is not easily guessable. Avoid common sequences like ‘1234’ or ‘0000’.
• Length: Opt for a longer PIN if your device allows it.
• Passphrase Addition: Some wallets support an additional passphrase (a 25th word) that creates a hidden wallet. This feature can protect your assets even if your seed phrase is compromised.

Purchase from Authorized Sources

To avoid counterfeit or tampered devices:

• Official Channels: Buy hardware wallets directly from the manufacturer’s website or authorized resellers.
• Avoid Second-Hand Devices: Pre-owned wallets may have been compromised.
• Check Packaging: Ensure the packaging is intact and has not been tampered with.

Regularly Update Firmware

Manufacturers release firmware updates to patch vulnerabilities:

• Stay Informed: Subscribe to official channels for update notifications.
• Verify Authenticity: Only download firmware from the manufacturer’s official website.
• Update Promptly: Apply updates as soon as they are available to ensure your device has the latest security enhancements.

Physical Security Measures

Protect your hardware wallet from physical threats:

• Secure Storage: When not in use, store your wallet in a locked safe or secure location.
• Discreet Usage: Avoid displaying or discussing your hardware wallet in public.
• Travel Caution: Be cautious when traveling with your wallet; keep it concealed and secure.

Be Aware of Social Engineering Attacks

Attackers may attempt to trick you into revealing sensitive information:

• Verify Requests: Be skeptical of unsolicited requests for your seed phrase or PIN.
• Educate Yourself: Learn about common phishing and social engineering tactics.
• Limit Sharing: Share information about your crypto holdings only with trusted individuals.

Implement Multi-Signature Wallets for Large Holdings

For significant cryptocurrency holdings:

• Multi-Signature Setup: Require multiple private keys to authorize transactions.
• Distributed Storage: Store keys in separate, secure locations to prevent a single point of failure.
• Collaborate with Trusted Parties: Involve multiple trusted individuals in the authorization process.

Maintain Operational Security (OpSec)

Good OpSec practices reduce the risk of targeted attacks:

• Anonymity: Avoid publicizing your cryptocurrency holdings.
• Secure Communications: Use encrypted channels for discussing sensitive information.
• Regular Audits: Periodically review your security measures and update them as needed.

By diligently applying these best practices, you can significantly enhance the physical security of your hardware wallet and protect your cryptocurrency investments from potential threats.

Ledger vs. Trezor — Evaluating Physical Security in Hardware Wallets

In the realm of cryptocurrency, the security of your assets hinges not only on digital safeguards but also on the physical resilience of your hardware wallet. Ledger and Trezor, two prominent players in this space, have adopted distinct approaches to physical security, each with its strengths and considerations.

Ledger: Emphasis on Secure Element Integration

Ledger’s hardware wallets, such as the Nano S and Nano X, incorporate a dedicated Secure Element chip designed to securely store private keys and perform cryptographic operations. This SE is certified to Common Criteria EAL5+, indicating a high level of security assurance. By isolating sensitive operations within the SE, Ledger enhances protection against physical attacks, including side-channel and fault injection attacks. Additionally, Ledger’s proprietary operating system, BOLOS, runs on the SE, ensuring that applications operate in isolated environments, reducing the risk of cross-application vulnerabilities.

Trezor: Balancing Transparency with Evolving Security Measures

Trezor’s earlier models, like the Model One and Model T, rely on general-purpose microcontrollers without a dedicated Secure Element. While this design aligns with Trezor’s commitment to open-source principles, it has exposed the devices to certain physical attack vectors. Recognizing the need for enhanced physical security, Trezor introduced the Safe 3 and Safe 5 models, incorporating Secure Elements to protect user PINs and cryptographic secrets. However, critical operations like key storage and transaction signing still occur on the microcontroller, which may not offer the same level of physical protection as a dedicated SE. Trezor has actively addressed identified vulnerabilities through firmware updates and security advisories, demonstrating a commitment to improving device security.

Making an Informed Choice

When choosing between Ledger and Trezor, consider the following:

• Security Priorities: If physical security against sophisticated attacks is paramount, Ledger’s integration of a certified Secure Element may offer enhanced protection.
• Transparency and Open-Source Commitment: Trezor’s open-source approach allows for community auditing and transparency, which may appeal to users who prioritize these values.
• User Practices: Regardless of the device chosen, adhering to best practices—such as safeguarding your recovery seed, setting strong PINs and passphrases, purchasing from authorized sources, and regularly updating firmware—is crucial to maintaining the security of your cryptocurrency assets.

In conclusion, both Ledger and Trezor have made significant strides in enhancing the physical security of their hardware wallets. Your choice should align with your security priorities, trust in the manufacturer’s approach, and commitment to following best security practices.