Hacking News
Ledger Confirms Unauthorized Hardware Implant in Wallet
Ledger, a hardware wallet manufacturer, has confirmed an unauthorized hardware implant in one of its affected customer's wallets. The implant was discovered during an investigation into suspected cryptocurrency thefts. The investigation began after customers reported losing cryptocurrency after purchasing Ledger devices from an authorized reseller, CryptoBilis. The investigation has estimated $93.2 million in suspected thefts across 315 wallets on six different blockchain networks. Independent researchers, including Tibane Labs, have documented different generations of Ledger Nano X implants designed to intercept recovery phrases. These implants work by monitoring electronic signals sent between a wallet's secure element and its display, allowing attackers to obtain the credentials needed to reconstruct a victim's wallet remotely. Ledger has advised customers who purchased devices from CryptoBilis not to initialize unused wallets and those who have already set up their devices to consider transferring their holdings to a trusted device using a newly generated recovery phrase. The discovery highlights the vulnerability of secure wallets to unauthorized physical modifications and the importance of maintaining secure backup procedures.