Ledger discovered a security flaw in Trezor’s hardware wallets, leading Trezor to issue a firmware update to fix the issue. The vulnerability could have allowed private key extraction if someone had physical access to the device and advanced tools. Trezor reassured users that the risk was minimal and has since resolved the issue. This incident highlights the ongoing battle between security and innovation in the hardware wallet market and proves that even crypto competitors can collaborate on critical security matters.