Foundation Passport Users Targeted by Fake Recall Phishing
Foundation warns that phishing emails impersonating CEO Zach Herbert are falsely claiming a supply-chain vulnerability in Passport hardware wallets. The messages target Founder’s Edition, Core and Prime users and direct them to a fake recall website that asks for 12-word recovery phrases. The Foundation Passport phishing campaign is not evidence of a confirmed hardware flaw or product recall, and no thefts or losses have been independently verified. Anyone who shared a recovery phrase should treat the wallet as compromised and move remaining funds to a new wallet with a fresh phrase; changing a PIN or updating firmware is not enough. The incident adds to recent phishing campaigns targeting hardware wallet users, but Foundation has not said how many people received the emails or whether any phrases were collected.
Neutral
The incident appears to be a credential-theft campaign rather than a confirmed flaw in Passport devices or Foundation’s systems. Its direct market impact is therefore likely limited: it does not, on the information available, change the fundamentals or supply of Bitcoin, Ethereum or Solana. In the short term, affected users may move funds to fresh wallets, while traders could watch for follow-up disclosures, confirmed losses or broader reports of compromised customer data. Similar phishing campaigns involving Trezor and BitBox users have highlighted the risk of impersonation and recovery-phrase theft, but such incidents have generally raised security concerns more than they have driven sustained market-wide price moves. Longer term, repeated attacks can weaken confidence in self-custody and hardware-wallet brands if user losses are confirmed. For now, the absence of verified losses and the lack of a confirmed product vulnerability support a neutral market view, although the risk to any individual who submits a recovery phrase is severe.