Laser Vulnerability Exposes Risk in Wearable Crypto Wallets
Wearable crypto wallets are gaining traction as an alternative to traditional hardware wallets, embedding private keys in secure element chips within rings and cards. These devices, such as those from Tangem, use near-field communication (NFC) to sign blockchain transactions by tapping a smartphone, keeping private keys isolated inside certified chips. Tangem reported $61.3 million in revenue for 2025, with over six million wallets produced, primarily cards, distributed through major retailers like Walmart and Best Buy.
However, security concerns emerged in July 2026 when Ledger Donjon researcher Baptistin Boilot revealed a laser fault injection vulnerability in Tangem cards. This flaw allowed attackers to bypass the SetPin password-reset check, effectively resetting the access code without the old code or a backup card. The vulnerability cannot be patched due to Tangem’s non-upgradable firmware, highlighting a critical risk for devices with locked firmware.
The global hardware wallet market was valued at $564.6 million in 2025 and is projected to reach $2.65 billion by 2034, growing at an 18.17 percent compound annual rate. Wearable wallets aim to simplify self-custody by replacing cables and Bluetooth with NFC taps, though they remain susceptible to physical access attacks and supply chain risks. Tangem’s CEO Andrey Kurennykh emphasized the strength of their secure architecture, but the laser attack demonstrates that even certified chips can be compromised under laboratory conditions.
Other competitors in the wearable wallet space include CoolWallet’s NFC-only Go model, launched at $59.99 in May 2025, and Arculus’s cold storage card with three-factor authentication. Despite market growth, incidents like Tangem’s app bug in December 2024 and the Coldcard firmware exploit in mid-2026 underscore that self-custody shifts rather than eliminates risk. Regulatory frameworks like the EU’s MiCA focus on service providers rather than personal storage devices, leaving manufacturers to manage security independently.