The most obvious strategy is to target the least decentralised aspect of the Bitcoin security chain: the hardware wallets.
Centralized service (such as exchange, custodial wallet and mining pool) and huge mining farm are less decentralization and easier to target though. They could use common excuse (such as preventing terrorism, protecting child or environmental impact) to pressure them without directly taking legal action.
Ten or so manufacturers represents a highly centralised chain link in the Bitcoin monetary system.
Those manufacturers aren't part of Bitcoin network or protocol.
An orbital issue is the notion of open source in regard to microprocessor chips. To me, talk about “open source” firmware for use with secure elements (or any chip for that matter) is meaningless and nonsensical; the hardware itself is not open source and covert hardware backdoors can be implemented by a few select employees at a chip foundry. What is the point of open source firmware if there is no way of verifying what functions are built into the chip during the processes of photolithography, etching, and deposition?
This is valid issue, although it applies to all devices we use.
Thoughts?
If government actually execute this kind of attack, what exactly is their goal? Stealing Bitcoin? Making people lose trust to the HW manufacture or even Bitcoin itself?