Ledger Wallet Tampering Suspected in Crypto Thefts

The cryptocurrency community is facing a severe security scare as reports mount regarding Ledger hardware wallet users finding their accounts systematically drained. Suspicion has intensified around a supply chain vulnerability linked to a reseller named CryptoBillis, prompting Ledger to formally request that the vendor suspend all sales while an ongoing internal investigation takes place.

Photographs and video clips shared widely across social platforms like X and Threads reveal a disturbing hardware modification: a miniature circuit board is covertly sandwiched directly beneath the device display screen. This unauthorized implant is designed to intercept any visual data shown on the screen, most critically capturing the seed passphrase generated during the initial device setup process.

Stock photo for illustration only, not from the actual event

Beyond simply recording display data, the integrated hardware utilizes a built-in SIM card to transmit the stolen information back to the attacker in real time. This mechanism enables perpetrators to effortlessly siphon funds directly from victim accounts. Current estimates indicate that the bad actors behind this operation have successfully stolen over 86 million dollars worth of cryptocurrency from hundreds of distinct wallets.

To date, Ledger maintains that there is no evidence indicating its corporate systems have been breached or that wallets purchased directly from the company have been compromised. Instead, the breach appears isolated to a supply chain attack primarily impacting users in Southeast Asia who purchased through the CryptoBillis reseller. Ledger has since released official guidelines to help customers inspect their hardware for signs of tampering.

Source: The Verge