Ledger Wallet Tampering Under Investigation After Crypto Theft Reports
Users of Ledger hardware wallets have reported unauthorized draining of their cryptocurrency accounts, prompting an investigation into potential tampering.
The French cryptocurrency hardware wallet manufacturer has asked reseller CryptoBillis to pause all sales while it examines the claims. Photos and videos circulating on social media platforms appear to show a small circuit board implanted beneath the wallet's screen.
According to reports, this hardware implant is designed to intercept information displayed on the screen, including the seed passphrase generated during initial wallet setup. The intercepted data is reportedly transmitted back to the attacker via an embedded SIM card, allowing the malicious actor to gain control of the wallet and transfer funds.
Ledger has stated it is conducting an investigation into the matter. Customers who purchased wallets from third-party resellers are advised to verify the integrity of their devices and consider generating new seed phrases on legitimate, factory-sealed hardware.
Hardware wallets like Ledger devices are designed to store cryptocurrency private keys offline, providing a security layer against online threats. However, this incident highlights the potential risks associated with purchasing hardware wallets from unofficial channels, where devices may be compromised before reaching the end user.