These Supposedly Super Secure Ledger Blockchain Wallets Are Secretly Draining User’s Crypto Holdings

Ledger, a company that sells secure blockchain wallets, recently faced a security breach when some of its devices were found to be tampered with by a mysterious "hardware implant." The implant, according to Bleeping Computer, was designed to monitor inputs and outputs made on the wallets, potentially identifying seed phrases - sequences of words used to generate wallet addresses on the blockchain.

Once the implant detected a seed phrase, it would transmit the information to hackers via an eSIM. The result was a number of Ledger users having their crypto wallets drained, prompting the company to launch an investigation. The investigation revealed that the compromised wallets originated from a Malaysian electronics reseller called CryptoBilis.

Despite the breach, Ledger maintained that their security infrastructure had not been compromised. However, the incident raises significant concerns about the security of the devices and Ledger's oversight of its hardware supply chain. If even a supposedly top-tier crypto wallet can be easily cracked, it raises doubts about the reliability of any supplier in the market.