Ledger Confirms CryptoBilis Wallets Were Altered to Expose Recovery Phrases

Ledger confirmed that some hardware wallets sold by Southeast Asian distributor CryptoBilis contained unauthorized components that captured users’ recovery phrases and transmitted them over LTE, creating a serious supply-chain security incident. The implant was placed inside the device casing and could read information displayed on the screen. During initialization, it captured the 24-word recovery phrase and used a built-in microcontroller and eSIM to send the data over an LTE network. Ledger said the component operated independently and did not alter the device’s Secure Element or operating system. It also did not interfere with transaction signing. All confirmed losses disclosed Oct.

Source: TokenPost