From Cointelegraph · By Helen Partz
Malicious implants in Ledger wallets sold by CryptoBilis captured users’ recovery phrases from device screens and transmitted them over cellular networks, the French hardware wallet maker said.
Ledger Donjon, the company’s security research team, found that the implants used a microcontroller to decode the 24-word phrases displayed during setup and transmitted the data over LTE networks using an embedded SIM (eSIM), according to a Tuesday X post by Ledger.
The implants did not compromise the devices’ security chips or alter transactions, Ledger said.
The incident surfaced Friday after crypto losses were reported involving Ledger devices sold through CryptoBilis, a reseller listed as authorized in Indonesia, Malaysia and the Philippines.
Ledger confirmed Saturday that one affected device contained an unauthorized implant. Blockchain investigator Specter said losses could exceed $86 million, while cybersecurity outlet Yfarmx raised its own estimate to $103 million. Ledger hasn’t confirmed the total.
Ledger says it has sold more than 8 million hardware wallets, devices that keep users’ private keys offline and let them approve transactions on-device.
Ledger probes implants beyond CryptoBilis
Ledger urged users who suspect tampering to contact its support team and file a police report.
Ledger directed concerned customers who bought devices elsewhere to an inspection guide, which warns that opening a device could damage it and advises users to back up their recovery phrases first.
Although confirmed losses have so far involved devices sold by CryptoBilis, Ledger said it is examining reports beyond the reseller.
Separately, X user Johannes posted photos of two Ledger devices he said he bought from separate stores of MediaMarkt, a European consumer electronics chain. He said he found implants in both devices. Ledger has not confirmed whether the European reports are linked to the CryptoBilis incident.
CryptoBilis halts all wallet sales as Trezor, OneKey cut ties
CryptoBilis said in an X post on Saturday that it had suspended sales and shipments of all hardware wallet brands across Malaysia, the Philippines and Indonesia, expanding an earlier halt limited to Ledger devices.
The reseller also temporarily closed its physical stores and said it was reviewing its processes with independent specialists.
Related: Ledger implant tests Bitcoin ETFs as safer custodial solutions than hardware wallets
Trezor said Monday that it had received no reports of tampered Trezor devices sold through CryptoBilis and found no indication that its products were affected. It nevertheless removed CryptoBilis from its authorized reseller network.