Hidden spy chip turns up in crypto wallet bought in Singapore, triggers investigation across 7 Asian markets
A Ledger crypto wallet bought at Singapore's Changi Airport contained a hidden spy implant, former Mt. Gox CEO Mark Karpelès said on Oct. 13 after taking the device apart.
A hidden spy chip was discovered in a Ledger Flex crypto wallet purchased in Singapore, prompting an investigation across seven Asian markets, according to reports. The device was bought from a Metapod store at Changi in June and later sent to Karpelès after scratches were noticed on its casing. Ledger has asked resellers in Indonesia, Singapore, Thailand, the Philippines, Vietnam, Malaysia, and Hong Kong to remove its crypto hardware wallets from shelves while it investigates the issue.
The implant, called Donjon, is placed inside the device's casing and can read the 24-word recovery phrase displayed on the wallet's screen when set up for the first time, potentially allowing unauthorized access to the funds. Ledger has not confirmed the existence of any other affected devices outside of Southeast Asia or if its own systems have been compromised.
The implant was reportedly bought from CryptoBilis, a Malaysia-based reseller, and has since stopped selling Ledger devices.
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