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Hardware wallets reportedly hid a chip that could transmit seed phrases

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A report says Ledger found an unauthorized hardware implant in at least one affected hardware wallet sold through the Southeast Asian reseller CryptoBilis. Ledger reportedly linked user reports of unexpected cryptocurrency drains to devices sold through that reseller, while describing the affected volume as limited.

Hardware wallets reportedly hid a chip that could transmit seed phrases

An intact original chip may coexist with hidden added circuitry

What makes the allegation unusual is that researchers examining devices said the added circuitry could capture the wallet’s screen output and button presses, then send a seed phrase over an LTE connection. The implant was reportedly hidden inside the device, and Ledger’s Genuine Check is said not to detect added implants if the original Secure Element remains intact. It remains unclear how or when the devices were altered.

Verification

UNVERIFIED

Feed metadata identifies a report, not independently verified underlying facts.

This is a source-attributed report that has not been independently verified.

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