Ledger CEO Pascal Gauthier said in an interview with Bloomberg that no company in the digital-asset industry can guarantee absolute security. He warned that cyberattacks will grow in scale as artificial intelligence expands hackers’ capabilities and advances in quantum computing put some cryptographic safeguards at risk.

Gauthier discussed the recent hacks of Binance and Ledger hardware wallets, the advantages of decentralized asset custody and Ledger’s work on new security measures. He said the Binance hack, in which attackers stole about $6 billion, again demonstrated the risks of centralized crypto custody.

According to Gauthier, Bitcoin was designed to remove the need to entrust funds to a single intermediary, although centralized platforms remain a necessary part of the cryptocurrency market.

“You shouldn’t keep all your money in a centralized organization, because sooner or later it will fail,” Gauthier said.

He also cited the irreversible nature of blockchain transactions, saying stolen crypto assets often cannot be recovered as they may be in the traditional banking system.

Gauthier said decentralized security remains a more reliable alternative to centralized custody. He estimated that losses involving assets protected by Ledger amounted to about 0.01% of their total value, but acknowledged that no security system can eliminate hacking risk entirely.

“Sooner or later, everyone gets hacked. There is no absolute security. This rule applies to both Ledger and other companies,” he said.

Gauthier estimated that attackers stole $9 billion in cryptocurrencies last year and another $12 billion since the start of this year. He urged market participants to cooperate against criminals rather than place all responsibility for an incident on the affected company.

Ledger investigates modified hardware wallets

Ledger said in October 2026 that it was investigating reports that more than $86 million had been stolen from owners of hardware wallets purchased through CryptoBilis, a reseller in Southeast Asia.

The company later found an unauthorized electronic component in one affected user’s device. According to Ledger’s investigation, the modification could intercept seed phrases during the wallet’s initial setup.

Investigators identified a 2-by-2-millimeter microchip connected to the screen’s data lines inside a Ledger Nano X. The chip could store the 24-word recovery phrase and transmit it to attackers through a cellular modem equipped with a SIM card and antenna. The device’s main secure chip continued to operate, allowing it to pass an authenticity check.

The investigation also prompted discussion of a vulnerability in version 1.22.1 of Ledger’s Ethereum app that OneKey founder Yishi Wang had previously reported. The vulnerability allowed a transaction to be swapped during signing, meaning a user could see one operation while approving another. It was not established as the cause of the October theft.

Gauthier acknowledged the seriousness of the attack but said its scale should be assessed against the total value of assets protected by Ledger. He said the roughly $90 million in losses represented about 0.01% of that value and maintained that hardware wallets provide stronger security than centralized platforms.

Ledger Atom adds security measures

Gauthier also discussed Ledger Atom, a new device with a secure screen that is scheduled to begin shipping in July 2027. He said the product already includes measures intended to counter attacks similar to the device modification investigated in October.

According to Gauthier, conventional smartphones do not allow users to verify reliably that the information shown on their screens is authentic, a problem that is becoming more acute with the development of AI. Ledger Atom is designed to protect information throughout a user’s interaction with the device, including when data appears on its screen.

“Security never sleeps. It is constantly evolving. You need to keep improving protection as attackers refine their attacks,” Gauthier said.

He added that Ledger’s products are intended to protect not only cryptocurrencies but also the privacy of other sensitive user data.

Source: Incrypted