Ledger says hardware implant in cryptocurrency wallets stole recovery phrases
Ledger cryptocurrency wallets sold through a Southeast Asian reseller had an implant allowing outsiders to drain funds, the company said.
Ledger, the hardware wallet manufacturer, has confirmed that one of its devices sold by a Southeast Asian reseller contained an unauthorized hardware implant. This unauthorized implant is believed to have led to significant crypto losses, with estimates suggesting the total damage could exceed $86 million. The affected users are primarily from the reseller CryptoBilis, who have since suspended sales of all hardware wallet inventory until the ongoing investigation is resolved.
Ledger is actively reaching out to users who purchased devices from CryptoBilis and advises them not to initiate setup if they haven't already done so. Those who have set up their devices are advised to consider transferring their assets to a new Ledger signer with a new seed. Ledger has not disclosed the exact number of customers affected or the total value of the losses.
The company has emphasized that its infrastructure, systems, and services were not compromised, and the investigation into the incident remains ongoing. Ledger is in active communication with CryptoBilis to determine the next steps. Individuals with information related to the investigation are encouraged to contact Ledger's bounty program at bounty@ledger.fr.
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