Spy Chip Discovered in Ledger Devices Sold by CryptoBilis
- A covert hardware implant in Ledger devices sold by CryptoBilis read users’ 24-word recovery phrases and transmitted them to an attacker.
- The implant utilized LTE technology over a mobile network, sending data via an eSIM.
- Ledger confirmed that the spy chip did not alter the device’s secure Element or operating system.
- This incident is categorized as a physical supply chain attack rather than a software breach.
- Recovery phrases are crucial as they allow anyone with access to recreate the wallet and move funds without the original device.
The discovery of this spy chip highlights significant vulnerabilities in hardware security for hardware wallets, particularly those linked to third-party resellers like CryptoBilis. Users must remain vigilant about the authenticity of their devices to protect their digital assets.
Ledger’s findings reveal that while the secure elements were untouched, the risk posed by compromised recovery phrases could lead to substantial financial loss for users relying on these devices. (Source)
