Ledger CEO and Ex-Mt. Gox Boss Clash Over $90M Wallet Scandal

Public Dispute Over Security Warnings

Mark Karpelès, the former chief of Mt. Gox, has publicly accused Ledger of failing to issue sufficient warnings about advanced spy implants in hardware wallets. Karpelès argues that clearer communication could have prevented more than $90 million in user losses. The dispute has escalated into a public exchange on Twitter/X between Karpelès and Ledger CEO Pascal Gauthier.

Karpelès, who has been examining the security of Ledger devices, stated that he opened a sealed Ledger wallet and discovered a hidden circuit board. He described the component as a spy implant capable of capturing a wallet’s 24-word recovery phrase and transmitting it to criminals. In Karpelès’ assessment, possession of the 24-word phrase grants attackers full control over the funds stored in the device.

Karpelès pointed to a security guide published by Ledger on March 6, which detailed both handmade and mass-produced spy chips. He noted that the guide was updated in September. According to Karpelès, Ledger did not adequately address the implant situation despite having this knowledge, leading to significant financial losses for users who purchased tampered devices.

Ceo Defends Company Response

Pascal Gauthier, CEO of Ledger, initially defended the company’s response to the security threat. In a public reply to Karpelès, Gauthier urged the former Mt. Gox chief to stick to the facts. Gauthier’s remarks referenced the 2014 collapse of Mt. Gox, an event in which approximately 850,000 Bitcoin went missing.

“Coming from the Mt Gox CEO… Come on man, you are no white knight. Get real,” Gauthier wrote in response to Karpelès’ accusations. Karpelès responded that his experience with the Mt. Gox collapse is precisely why he expected higher standards from Ledger. He maintained that his criticism was based on the technical reality of the security failure rather than personal motives.

Ledger has acknowledged that its Genuine Check service cannot detect implants if the original security chip remains intact. The company has since halted sales through the reseller CryptoBilis following reports of tampered devices in Europe. These reports have widened concerns among users regarding the supply chain security of hardware wallets.

Timeline and Corrections

The conflict over the timing of warnings led to a correction by Karpelès on October 17, 2026. He acknowledged that Ledger did publish an academy topic in March 2026 that discussed the implant situation. The topic recommended that users buy devices directly from Ledger or from Authorized Resellers.

“I said @Ledger didn’t talk about the implant situation at all despite knowing about it – they did publish an academy topic in March 2026 that talks about it and recommends buying direct or from Authorized Resellers,” Karpelès posted on Twitter/X.

Despite this correction, the core of Karpelès’ argument remains that the initial response was not robust enough to prevent the reported losses. The dispute highlights a broader issue in the digital asset market: an authentic hardware wallet does not guarantee that the device has never been modified after leaving the manufacturer.

Meanwhile, rival company Trezor has moved to reduce its reseller network in response to similar security concerns. The ongoing exchange between Gauthier and Karpelès continues to draw attention to the vulnerabilities in the supply chain for self-custody solutions, with users now urged to verify the provenance of their devices more strictly.