Does Buying a Hardware Wallet Imply an Implicit Trust on the Wallet Manufacturer?

Question

Just getting started with crypto, and as per some advices I read, a hardware wallet is the way to go for bullet proof security from malicious actors. After some research, think I will go with the Trezor model one as a cost-effective option. (Recommendation on any cheaper option, that does not compromise on the security, is welcome)

But, as a beginner, I have a few questions pertaining to different scenarios

Scenario 1

The hardware is lost, but I retain the seed phrase (combination of 40 words, right?). What's the exact process to recover my bitcoins? Simply buying another trezor one?

Scenario 2

Now suppose, in addition to the above scenario (hardware lost, retaining seed phrase), somehow, the company Trezor went bankrupt as well, i.e. their products are not available. What then? Will any hardware wallet work with the same seed phrase? And do I necessarily need a hardware wallet?

Scenario 3

The hardware is stolen. Does it have any security in place to at least make it difficult for the thief to spend the coins? Can I lock/destroy (I mean contents in it) it remotely (like, how I can lock my iPhone if it is stolen)?

Finally, if I am in possession of the wallet, and the seed phrase, can I do something like a factory reset of the wallet, i.e. restoring it to the same state when it was delivered and generating a new seed, again, like I can do on a smartphone? I know the funds inside (if any), will be lost, but just wondering if it is possible.

Answer 1

If you buy a hardware wallet, then you are trusting the manufacturer.

Trusting that they won't steal your keys or generate pre seeded keys.

Read: What is industry standard solution for trustless self custody?

Scenario 1 The hardware is lost, but I retain the seed phrase (combination of 40 words, right?). What's the exact process to recover my bitcoins? Simply buying another trezor one?

Buy any hardware wallet, and enter your seed phrase. Or use wallets like metamask, etc and enter your seed phrase.

Scenario 2 Now suppose, in addition to the above scenario (hardware lost, retaining seed phrase), somehow, the company Trezor went bankrupt as well, i.e. their products are not available. What then? Will any hardware wallet work with the same seed phrase? And do I necessarily need a hardware wallet?

Answered above

Scenario 3 The hardware is stolen. Does it have any security in place to at least make it difficult for the thief to spend the coins? Can I lock/destroy (I mean contents in it) it remotely (like, how I can lock my iPhone if it is stolen)?

Hardware wallets usually have a secure PIN that you set, and use to login into the device. After couple of failed logins, the device can be configured to reset itself.

I think for open source wallets like Trezor, the wallet can be physically hacked and your key/seed phrase can be exported by technical experts. For closed source wallets like Ledger this is less probable as the technical experts don't know the Ledger firmware source code.

Finally, if I am in possession of the wallet, and the seed phrase, can I do something like a factory reset of the wallet, i.e. restoring it to the same state when it was delivered and generating a new seed, again, like I can do on a smartphone? I know the funds inside (if any), will be lost, but just wondering if it is possible.

You can do this and reset the device. But as long as you have the seed phrase written down somewhere, you don't loose your crypto.

Remember that SEED PHRASE = PRIVATE KEY = YOUR CRYPTO