Ledger reports organized crime group spent millions implanting hardware into wallet devices

Ledger stated that a highly organized criminal group purchased Ledger devices, installed implants to read users’ seedphrases, and reintroduced them into the supply chain via resellers. Blockchain investigator Specter said $86 million had been drained from tampered devices, following reports from customers in South East Asia who bought from Malaysia-based reseller CryptoBilis. Ledger confirmed no flaw in its chip, operating system, or servers, stating the attack targeted the distribution channel after devices left its control. The company is working with law enforcement and has suspended sales with authorized resellers in Southeast Asia and Hong Kong.