One company that specializes in recovering stolen or lost cryptocurrency has found a way of hacking into the Trezor T Hardware Wallet once they’ve got it in their possession.

Unciphered informed CoinDesk that it used a “hardware vulnerability with the STM32 processor which allows us to dump embedded flash and OTP data” in a series of extensive conversations and via email.

This is all very technical. But the team performed a lab demonstration and documented it on video. They were able to successfully hack into a Trezor T provided by CoinDesk, and retrieve our seed phrase. Unciphered had previously hacked EthereumWallet to recover locked crypto. However, they claim that “does support every wallet on the market.”

Trezor informed CoinDesk its team did not have enough information about the specific attack Unciphered conducted to fully respond, but that it appeared to be an “RDP Downgrade Attack,” which had been publicly flagged three years ago as a potential risk.

Unciphered’s press representative said that they had not been contacted directly by Unciphered, despite the fact that “as we stated on our Blog early in 2020, RDP Downgrade Attacks require physical theft of an device, as well as extremely sophisticated technology knowledge and advanced equipment.”

Trezor said that “even if you have the above, Trezors are protected by a passphrase that adds an additional layer of security, rendering a RDP upgrade useless.”

After the collapse of Sam Bankman Fried’s FTX Exchange last year, many crypto security experts recommended that users store their assets in hardware wallets rather than on exchanges. However, the latest revelations have shown that these devices are not foolproof.

Read more: Crypto wallet provider Ledger delays key-recovery service after uproar

Unciphered refused to confirm or deny that its hack of Trezor T was a RDP downgrade. Citing “current engagements” and “non-disclosure contracts,” the company said they could not elaborate on “how exploit chain currently works.”

Unciphered reports that “Further any technical disclosure could put Satoshilabs’ customers at risk until mitigations are implemented, such as the use of a different chip than the STM32 currently in use.”

Unciphered stated that Trezor, despite being aware of the vulnerability in the STM32 chip that is found in the Trezor T, has done nothing to address it since its initial efforts to make the public aware of the risk.

Unciphered sent an email to CoinDesk saying, “It’s a fact that they are trying to place the responsibility for securing the device on the user rather than admitting the device is fundamentally unsecure.”

Trezor says: “Contrary Unciphered’s claims, Trezor’s sister company Tropic Square has developed the the world’s first transparent and auditable secure element to resolve this.”

Hardware wallets: Alternative options

Unciphered only attacks the device that the hacker physically owns.

Nick Federoff is the head of marketing for Unciphered. He said: “The threat to security can often come from within the home.” “We are often our worst enemies. This is a big part.

The seed phrase is generated when a user creates a hardware wallet. It’s a random group of 12 or 24-words that allow access to the wallet’s assets.

Unciphered wanted to show off its capabilities, so they asked CoinDesk for a Trezor T, to set it up using our seed phrase, and to write this down somewhere safe. Unciphered then proceeded with the hacking (recording certain steps in a video), and were ultimately able to recover our seed phrase. Unciphered suggested that CoinDesk be involved as an extra step to ensure that the procedure was not faked, or that it wasn’t compromised by previous owners.

The device is available for $219 at the website of the company.

Unciphered admitted that it hadn’t contacted Trezor in order to inform them of the vulnerability before attempting to make it public via an article published on CoinDesk. Often, “white-hat” hackers work more cooperatively. A press representative for Trezor said that Unciphered had not contacted Trezor, whether it was through the responsible disclosure program or other means.

Unciphered informed CoinDesk they hadn’t contacted Trezor, because “our obligations were to consumers, not vendors, who had a vested interest in selling more products regardless of how vulnerable these products made the customers who used them.”

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Bradley Keoun is the editor.