Ledger Wallet Implant Exposes Limits of Supply-Chain Security Checks

Ledger confirmed an unauthorized implant in one hardware wallet sold through CryptoBilis, an authorized reseller in Indonesia, Malaysia and the Philippines. The case highlights how buyers may not be able to detect physical tampering before a device reaches them. The implant captured users’ recovery phrases and transmitted them over cellular networks. A recovery phrase can restore access to a crypto wallet. Losses involving devices sold through CryptoBilis surfaced Friday, and Ledger confirmed the implant Saturday. Hardware wallets are designed to keep private keys offline, limiting exposure to online attacks.