Ledger CEO Faces Backlash Over Claims Everyone Will Be Hacked

Ledger CEO Pascal Gauthier has faced criticism from the cryptocurrency community after warning during a Bloomberg Crypto interview on November 10 that everyone will eventually be hacked and acknowledging that perfect security does not exist, including at Ledger.

Crypto users on X questioned the remarks, arguing that they appeared at odds with Ledger’s business of selling hardware wallets designed to protect digital assets. Several commentators pointed out the contradiction, with one critic stating that the head of a company securing over 20% of all crypto assets should not suggest hacks are inevitable.

Defense of Hardware Wallets

Gauthier defended hardware wallets during the interview, arguing that decentralized asset protection has resulted in considerably smaller losses than centralized platforms. He compared Ledger's approximately $90 million in losses from compromised devices—representing about 0.01% of the assets the company protects—with the $6.3 billion Binance breach on October 29 and other major incidents involving FTX and Bybit.

The executive maintained that decentralized security makes large-scale attacks more difficult, though he warned that overall cryptocurrency thefts are increasing, citing approximately $9 billion stolen last year and $12 billion so far this year.

Security Incidents and Industry Fallout

The remarks followed an October investigation involving compromised Ledger hardware wallets distributed through a third-party reseller in Southeast Asia, where an unauthorized hardware implant was discovered capturing 24-word recovery phrases. Ledger subsequently suspended retail sales in Germany through MediaMarkt Saturn.

Security concerns have affected other developers as well. On November 10, Sui-native hardware wallet project Suiball announced its closure, citing recent industry attacks and excessive risks.

Key facts

• Ledger CEO Pascal Gauthier stated on November 10 that everyone will eventually be hacked and perfect security does not exist.
• Critics on X questioned the remarks given Ledger’s business model of selling hardware wallets.
• Gauthier stated that compromised Ledger devices accounted for about $90 million in losses, or 0.01% of protected assets.
• Sui-native hardware wallet project Suiball announced its closure on November 10 due to industry security concerns.