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The Kraken Security Labs have just hacked Trezor’s wallet and extracted the cryptographic seeds od the Trezor One model in less than 15 minutes so let’s find out whether your coins are at risk in the blockchain news below.

Given the physical access to the device and the needed know-how, the attack can be performed in less than 15 minutes using about a $75 worth of specialized glitching hardware. To make the matters worse, there’s nothing that Trezor can do about it. The attack exploits a vulnerability in the firmware that can lead to an inherent hardware vulnerability that can’t be patched without substantial physical changes to the hardware wallet.

The issue here is with the two micro-controllers that the Trezor hardware wallets use to store the cryptographic seeds and other data. By using the cheap glitching device, the Kraken Security labs managed to corrupt the controllers and to extract the encrypted flash contents and to compromise the entire device and the security of the hardware wallet by brute-forcing PIN codes in less than two minutes:

 “This attack demonstrates that the STM32-family of Cortex-M3/Cortex-M4 microcontrollers should not be used for the storage of sensitive data such as cryptographic seeds even if these are stored in encrypted form.”

Kraken also pointed out that Trezor was long known about the issue and back in 2019, the security team of Ledger was the first to perform a similar attack and to expose this issue saying it is unpatchable vulnerability native to all of the KeepKey hardware wallets and Trezor’s as well. In their defense, Trezor stated that the attacks were not exploitable remotely and that “the demonstrated attack vectors require physical access to the device, specialized equipment, time, and technical expertise.”

What is most shocking is that there’s a 15-minute gateway to the device which is worth about $75 dollars of specialized equipment and you can see how to perform everything with the Kraken step-by-step guide. Trezor and KeepKey crypto wallet users will have to keep a close eye on their devices and to enable the BIP39 passphrase using the Trezor client.
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This passphrase is not stored directly on the device which means that all of the assets should remain safe even if the attacker gets ahold of the wallet itself.