Trezor to Promise Hardware Update

The update is expected in January; it's going to fix the Wallet Fail vulnerability
29 December 2018   482

As reported earlier, Wallet Fail team was able to hack Trezor's and Ledger's hardware wallets at the  35C3 Refreshing Memories conference.

CTO of SatoshiLabs, creator of Trezor, have finally commented on the situation.

With regards to 35c3 findings about Trezor: we were not informed via our Reponsible Disclosure program beforehands, so we learned about them from the stage. We need to take some time to fix these and we'll be addressing them via a firmware update at the end of January.
 

Pavol Rusnak

CTO, SatoshiLabs

Same group of researchers also claimed during the talk that they were able to install any firmware on a Ledger Nano S, another hardware wallet.

We can send malicious transactions to the ST31 [the secure chip] and even confirm it ourselves [via software,] or we can even go and show a different transaction [not the one that is actually being sent] on the screen.
 

Team Member, Wallet Fail

Additionally, Wallet Fail demonstrated a vulnerability in the Ledger Blue, the most expensive hardware wallet produced by the company, with a color touchscreen. The signals are transported to the screen by an unusually long trace on the motherboard, which is why it leaks those signals as radio waves.

Ledger to Report on Trezor Vulnerabilities

As reported, the security research by the Attack Lab found 5 serious vulnerabilities 
12 March 2019   1038

The leading manufacturer of cryptocurrency hardware wallets Ledger spoke about the vulnerabilities identified in the devices of his direct competitor Trezor. This is stated in a message distributed by the French company on Monday, March 11.

The Ledger study states that the vulnerabilities were discovered by employees of Attack Lab, a division of the company, which, to increase security, hacks both own wallets and competitors' devices. Representatives of Ledger claim that they have repeatedly contacted Trezor regarding the weak points in their Trezor One and Trezor T wallets, and after the disclosure period ended, they decided to make them public.

The first problem is related to authenticity of devices. As Ledger claims, the Trezor device can be simulated by hacking it with malware, and then resealing it in a box, forging a sticker designed to protect against unauthorized access. The latter, said the French company, is easy to remove. It is also claimed that this vulnerability can be eliminated only by reformatting the entire design of Trezor wallets, in particular, by replacing one of the main components with the Secure Secure chip.

Secondly, Ledger hackers were able to pick up a PIN on a Trezor wallet using an attack on a third-party channel. Later, Trezor solved this problem in its firmware update 1.8.0.

The third and fourth vulnerabilities, which Ledger also proposes to eliminate by replacing the main component with the Secure Element chip, are the possibility of stealing confidential data from the device. Ledger claims that an attacker with physical access to Trezor One and Trezor T can extract all data from flash memory and gain control over the assets stored on devices.

The last discovered weakness is also related to the Trezor security model: as stated by Ledger, the Trezor One cryptographic library does not contain adequate countermeasures against hardware attacks. It is alleged that a hacker with physical access to the device can extract the secret key through an attack on a third-party channel, although Trezor claimed that his wallets are resistant to such an attack.

It is noteworthy that in November 2018 Trezor representatives themselves warned that an unknown third party was distributing individual copies of their flagship device, Trezor One, urging users to buy wallets only through their official website.

However, in its report, Ledger claims that users cannot be sure, even if they buy equipment on the Trezor website. An attacker can buy multiple devices, hack them, and then send them back to the manufacturer for compensation. Ledger researchers conclude that if a compromised device is resold, user cryptocurrencies may be stolen.

There's no comment from Trezor team yet.