Ledger CEO Clashes With Ex-Mt. Gox Boss Over Wallet Thefts

Ledger CEO Pascal Gauthier has publicly clashed with former Mt. Gox chief Mark Karpelès over warnings regarding modified hardware wallets linked to an estimated $90 million in cryptocurrency thefts, according to CryptoNews.

The public dispute began on October 17 on X, where Karpelès questioned whether the hardware wallet manufacturer had communicated the danger of sophisticated spying implants clearly enough before customers reported losses. The incidents involved devices sold through Southeast Asian reseller CryptoBilis, which investigators found were modified with unauthorized electronics to capture 24-word recovery phrases during setup and transmit them via cellular connections.

Security Warnings and Tampering

Karpelès pointed to a security guide published on March 6 and updated on September 18, arguing that a more prominent warning could have prevented over $90 million in losses. Gauthier defended Ledger's security work, noting that outsiders should distinguish established evidence from speculation. The Ledger CEO also referenced Karpelès's leadership of the failed Mt. Gox exchange, stating that the former executive was no white knight. Karpelès responded that his experience with a major exchange failure justified expecting stronger security communication.

Ledger stated that its Genuine Check authentication system verifies the cryptographic identity of the Secure Element, but acknowledges the check cannot detect unauthorized physical additions when the original protected chip remains intact. The company paused CryptoBilis sales following the discoveries.

Key facts

• Estimated losses linked to modified hardware wallets exceed $90 million, according to investigators.
• The dispute involved Ledger CEO Pascal Gauthier and former Mt. Gox chief Mark Karpelès.
• Devices sold via Southeast Asian reseller CryptoBilis were found to contain unauthorized components capturing recovery phrases.
• Ledger's Genuine Check cannot detect physical additions if the original Secure Element remains intact.