Ledger Donjon: Laser attack can reset Tangem cards’ passwords
Ledger’s Donjon security team disclosed a physical laser fault injection that can reset passwords on Tangem cards. The method disrupts a firmware check during Tangem’s password-reset process, letting an attacker set a new password without knowing the current one or having a backup card.
Key details for traders: the attack is not remote and cannot be executed via the Tangem mobile app, internet connection, or NFC alone. To carry out it, an attacker needs physical possession of the Tangem card, lab access, and specialist skills. Ledger says the invasive preparation (cutting the card, exposing and rewiring the secure element, then running power analysis and laser fault injection) typically costs around $250,000 and also damages the card, making surreptitious return impossible.
Ledger states the issue affects Tangem cards currently in circulation because Tangem cards do not support firmware updates, so a software patch cannot be rolled out. The main risk is therefore tied to lost or stolen cards: with the card in hand, an attacker could potentially authorize transactions and move funds.
Tangem disputes practical exposure, saying the requirements—physical control, expensive equipment, and highly specialized expertise—make everyday risk “virtually non-existent.” Ledger counters that even EAL6+ certified secure elements are not immune to all threat models, since firmware behavior matters.
Previous Ledger research into Tangem included an Android genuine-check bypass and a brute-force approach targeting authentication. Unlike that mobile-chip path, this latest Tangem cards finding remains constrained by cost, access, and difficulty.
Neutral
This news is mainly about a hardware-wallet attack that requires physical access and costly lab equipment, so it is unlikely to trigger broad market panic. Tangem and Ledger both agree the exploit is not remote: it hinges on lost or stolen Tangem cards. That confines the potential real-world impact to a limited, edge-case user population.
From a market-trading perspective, hardware wallet security disclosures can create short-term sentiment pressure for self-custody narratives, especially if users fear funds can be moved even without knowing passwords. However, the “no patch possible” element could keep skepticism elevated among risk-focused traders, similar to prior incidents where secure-element designs were questioned but practical exploitation remained narrow.
In the short term, you may see mild, speculative headwinds to sentiment around Tangem-branded custody solutions (and generally self-custody confidence), but not a direct, coin-level fundamental driver. In the long term, the disclosure reinforces the importance of secure recovery practices and device physical security, which can indirectly support demand for more resilient wallet architectures and ongoing security research. Overall, given the attack constraints and Tangem’s pushback on practical risk, the expected market effect is best categorized as neutral.