Ledger finds tampered wallets sold by reseller CryptoBilis
Ledger's team found a hidden cellular device inside hardware wallets resold by CryptoBilis, which could transmit users' recovery phrases. Retailer MediaMarkt has halted sales in Europe.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
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What happened
Ledger confirmed an unauthorized hardware implant in devices linked to crypto losses at CryptoBilis, a Southeast Asian reseller. The company says it found the implant reads seed words from the screen and sends them over LTE, without compromising the security chip. Ledger says confirmed cases are limited and its internal systems are unaffected.
Why it matters
The implant could expose users' recovery phrases, and the reports link it to crypto losses. The discovery also prompted debate over whether Bitcoin ETFs are safer than self-custodying Bitcoin on hardware wallets.
Timeline
- Oct 12, 3:49 AM ET: Ledger confirmed an unauthorized implant in a device linked to crypto losses at CryptoBilis.
- Oct 13, 4:45 AM ET: Ledger found tampered wallets used hidden cellular transmitters to expose users' recovery phrases.
- Oct 13, 10:45 AM ET: MediaMarkt suspended sales of the affected units in Europe.
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