Ledger Spy Chip Scandal Sparks Concerns Over Crypto Wallet Security
Paris-based cryptocurrency hardware wallet provider Ledger is investigating a supply-chain attack involving spy chips implanted in devices sold by reseller CryptoBilis. The implants, discovered inside some wallets, captured users' recovery phrases and transmitted them via eSIM technology without compromising the secure element or altering transactions. Affected customers reported losses exceeding $90 million across over 300 wallets, with Tether freezing part of those funds in USDT. Ledger has advised buyers from CryptoBilis not to initialize unused devices and urged existing users to transfer assets using a new recovery phrase. The company is reviewing its reseller controls but emphasized that the breach was physical rather than digital. Reports also emerged of tampered Ledger wallets sold by German retailer MediaMarkt, which removed all Ledger products from its stores. CEO Pascal Gauthier acknowledged supply-chain risks for the industry and urged users to rely on official channels for updates. CTO Charles Guillemet is collecting suspicious devices for analysis while investigations continue.
Topics: crypto cybersecurity fraud hardware_wallets