Trezor expands wallet’s maximum passphrase length from 50 to 128 characters.
The update follows July’s Coldcard vulnerability, which exposed weaknesses in recovery phrase generation and contributed to more than $100 million in reported losses.
Strong, unique passphrases helped protect some users whose wallet backups were compromised. The new limit requires updated Trezor Suite software and compatible device firmware.
Trezor Strengthens Wallet Protection With Longer Passphrases
Hardware wallet manufacturer Trezor has expanded its passphrase limit to 128 characters, giving users another option to secure their cryptocurrency holdings after a series of wallet security incidents. Announced on November 1, the change increases the previous 50-character ceiling and is available through updated Trezor Suite software and compatible device firmware. Older firmware retains the original restriction.
A passphrase functions as an additional layer of protection alongside a wallet’s recovery phrase. Even if an attacker obtains the recovery phrase, they still need the exact passphrase to access a wallet protected by one.
Trezor highlighted the importance of this feature following the July Coldcard incident, when a firmware vulnerability caused certain devices to generate recovery phrases with insufficient randomness.
Attackers were subsequently able to reconstruct vulnerable wallet backups and steal cryptocurrency. According to Trezor, some affected users who had established strong, unique passphrases were able to keep their funds protected despite the compromised recovery information.
Coldcard Exploit Raises Questions About Hardware Wallet Security
The incident highlighted a critical weakness in cryptocurrency self-custody: hardware wallets are only as secure as the systems responsible for generating and protecting their private keys.
Reports placed the losses associated with the Coldcard vulnerability above $100 million, intensifying scrutiny of wallet manufacturers and their security practices.
Trezor has stressed that wallets originally generated on its devices were not affected by the Coldcard firmware flaw. However, users who created their recovery phrases on vulnerable Coldcard devices and later restored them on Trezor remain exposed until they transfer their funds to a newly generated wallet.
The distinction is important because restoring a compromised recovery phrase on another hardware wallet does not eliminate the underlying vulnerability.
Longer Passphrases Require Careful Management
Although the expanded character limit provides greater flexibility, Trezor warns that passphrases remain an advanced security feature.
Every different passphrase generates a separate wallet, meaning even a minor typing error can open an entirely different wallet rather than the one containing the user’s funds.
Lost or forgotten passphrases cannot be recovered by Trezor, potentially leaving users permanently unable to access their cryptocurrency.
The update reinforces a broader lesson for the crypto industry: stronger security depends on multiple safeguards, from reliable key generation to careful recovery practices. Longer passphrases can add meaningful protection, but users must store them securely and ensure they can reproduce them exactly.
The post Trezor Expands Wallet Security Features Following $100M Coldcard Exploit first appeared on Bitcoinist.
