Ledger has asked reseller CryptoBillis to halt all sales of its crypto wallets while it investigates reports of stolen funds, according to The Verge. The company confirmed that one impacted user's device contained an unauthorized hardware implant.
The alleged tampering appears to be part of a supply chain attack that has drained over $86 million in crypto from hundreds of wallets. Ledger says its own systems were not compromised and wallets bought directly from the company are unaffected.
How the Ledger implant reportedly works
Photos and videos circulating on X and Threads show a small circuit board hidden under the wallet's screen. According to reports, the implant intercepts everything displayed, including the seed passphrase shown during initial setup.
An embedded SIM card then transmits that data to the attacker, who can access the wallet and siphon funds. The issue seems concentrated among users in Southeast Asia who purchased through CryptoBillis.
- Unauthorized hardware implant found under the screen
- Intercepts seed passphrase during setup
- Embedded SIM sends data to attacker
- Over $86 million stolen from hundreds of wallets
- Ledger's own systems not compromised
