Matthew RosenquistFounder & CISO Advisor, Cybersecurity Insights · CISO, Cybersecurity Strategist, & Industry Advisor

Hardware Hacks of Secure Cryptocurrency Wallets #cybersecurity

15 Oct 2026 · 3 min

Watch on YouTube

2:39

In this video, Matthew Rosenquist warns that hardware-level attacks on cryptocurrency hardware wallets are a real and growing threat. He explains that attackers intercept newly manufactured wallets, open them, and add custom circuitry—including an LTE modem, eSIM, and antenna—to exfiltrate the private seed (the secret key) over cellular networks. These compromised devices have already been sold to consumers, resulting in more than $100 million in stolen crypto assets. Rosenquist uses this case to illustrate a broader risk: if even highly secure consumer devices can be compromised at the hardware level, similar supply‑chain attacks could target medical devices, industrial control systems, critical infrastructure, transportation, defense, and scientific equipment. He directs viewers to a longer article on LinkedIn and Substack for more details and encourages subscription to his Cybersecurity Insights newsletter.

Chapters

If you thought hardware hacks were not a real threat, you were wrong. We are seeing hardware devices being hacked directly for espionage and now cybercrime. The latest is from the world of cryptocurrency, and it's fascinating. So let me set the stage. In cryptocurrency, protecting your secret keys is paramount, and the most secure digital wallets are hardware-based. They are small devices that create and store keys, which are necessary to securely communicate to public digital ledgers. If you can compromise those keys, you control those addresses' assets. Using software can be good, but it's hackable. Dedicated hardware wallets are the best. They're designed and built so well that to hack them would require modification of components within the individual devices themselves. And that's exactly what's happening. Attackers have somehow gotten their hands on devices after manufacturing and before being purchased by consumers. These are new devices that hackers have intercepted, cracked open, modified the internal components, and added complex custom circuitry and then repackaged. When an unsuspecting consumer buys this new device, The hackers can scrape the private seed. This phrase is used for secret key creation. The hackers then use the LTE modem, the eSIM, and the antenna they embedded to transmit the harvested credentials over the cellular networks. Many of these compromised devices have now been found, and cybercriminals have stolen over $100 million worth of crypto tokens. This is a huge deal, but more importantly, it showcases an even bigger problem. If hardware-level espionage and cybercrime are showing up in super secure consumer devices, what does that say to the even greater risk to hardware hacking of medical devices, industrial facilities, critical infrastructure systems, transportation devices like cars or planes, defense components, and scientific research equipment? Hardware-level espionage and cybercrime are a growing reality that increases the risks to everyone. Be sure to check out my full article on LinkedIn and Substack and subscribe to Cybersecurity Insights.