A broken hardware wallet (such as a Ledger or Trezor) does not mean your cryptocurrency is lost. Your assets can be fully restored on a new device using your secret recovery seed phrase. The most critical component for regaining access to your crypto is this phrase — not the physical device itself.
This article explains how hardware wallet recovery works, what to do if your device breaks, and the last-resort options available if you’ve also lost your seed phrase.
Datarecovery.com provides risk-free evaluations for crypto recovery, and we support all of our services with a comprehensive no data, no charge guarantee. To get started, call 1-800-237-4200 or set up a case online.
Your Crypto Is on the Blockchain, Not Your Device
Your cryptocurrency is not stored inside your hardware wallet. Whether you’re using a Ledger Nano, Trezor Model T, or another device, that piece of hardware only stores your private keys.
Your private keys prove your ownership of assets on the blockchain. The hardware wallet’s job is to keep these keys secure (and offline), so that you can sign transactions without taking security risks.
Your crypto assets themselves exist as records on the blockchain. That means that if you’ve lost or damaged a hardware wallet, you can restore your crypto by using your recovery phrase (or seed phrase).
How to Restore Your Wallet with a Seed Phrase
When you first set up your hardware wallet, you were prompted to write down a 12, 18, or 24-word recovery seed phrase (sometimes called a mnemonic phrase). This phrase is the master key to all your private keys. If your device breaks, you simply need to get a new hardware wallet and use this phrase to restore access.
The process is straightforward, though it varies a bit depending on whether you’re using another hardware wallet or restoring to a software wallet.
Assuming that you’ve got your seed phrase, though, you’re in great shape. To restore access to your crypto, read: How to Recover a Lost Cryptocurrency Wallet.
Note: Your seed phrase is the ultimate backup. Never store it digitally (e.g., in a text file, email, or cloud drive). Write it down on paper or stamp it into metal (in a future article, we’ll discuss this process) and store it in a secure, private location. Anyone with access to this phrase can access your funds.
What If Your Device Is Broken and You Lost Your Seed Phrase?
Your only remaining option is to attempt a physical repair and data recovery from the broken device itself.
This is a highly specialized and complex process that should only be attempted by professional data recovery experts. Why? For starters, you’ll generally have one chance to restore your data — each recovery attempt will raise the risk of permanent data loss due to the security features of high-end hardware crypto wallets (detailed below).
At Datarecovery.com, our engineers have the forensic tools and cleanroom facilities necessary to work on damaged electronic devices, including hardware wallets. Here’s an overview of the challenges of hardware wallet recovery.
Ledger Data Recovery Challenges
Ledger devices are known for their robust security, which centers around a Secure Element (SE) chip. This is a specialized, tamper-resistant microprocessor similar to what is used in credit cards and passports.
- How it works: The private keys are generated and stored directly within the Secure Element. All transaction signing also occurs inside this isolated chip.
- Recovery Impact: The Secure Element is designed to self-destruct or wipe its data if it detects physical tampering. This makes extracting keys directly from a damaged Ledger chip difficult.
Successful recovery often depends on repairing the components around the Secure Element such as connectors, power circuits, or the screen — without triggering its security mechanisms.
Trezor Data Recovery Challenges
Trezor devices use a different security model. Instead of a Secure Element, they rely on a general-purpose microcontroller and sophisticated firmware to protect the private keys.
- How it works: The private keys are stored in the device’s flash memory and are protected by firmware and, optionally, a user-created passphrase.
- Recovery Impact: While still challenging, recovering keys from a physically damaged Trezor can sometimes be more feasible than from a Ledger. If the microcontroller’s memory chip is intact, our engineers may be able to perform a “chip-off” recovery. This involves physically removing the memory chip from the circuit board and reading its contents with a specialized tool to reconstruct the private keys.
Notably, Trezor is the first hardware wallet to adopt the SLIP39 backup standard (not to be confused with BIP39, the standard for setting seed phrases). SLIP39 basically lets you split your wallet seed phrase into multiple parts called recovery shares.
The use of Shamir Backup changes the data recovery scenario significantly. If your Trezor device is broken, you don’t need to recover the device itself as long as you have enough recovery shares to meet your threshold.
Physical data recovery from the device only becomes the last resort if your device is broken and you have also lost too many recovery shares to restore the wallet on your own.
Data Recovery Resources for Hardware Wallets
If you have your seed phrase, the path forward is simple: buy a new wallet and restore it. Your funds are safe.
But if your hardware wallet is broken and you have lost your seed phrase, the situation is critical. Do not attempt to repair the device yourself, as you could cause irreversible damage and permanently lose access to your assets.
If you are facing data loss from a broken Ledger, Trezor, or other hardware wallet, we’re here to help. Contact Datarecovery.com at 1-800-237-4200 for a free case evaluation or submit a case online.
