AI · CryptoSlate
When an owner approves a payment, the wallet signs the transaction without giving the computer those keys
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During setup, a Ledger wallet displays 24 recovery words, which can recreate the wallet and its keys if the device is lost.
Key facts
- Blockchain analytics firm Bitquery estimates that attackers stole $102 million from 324 wallets across six networks, although Ledger hasn't confirmed that total or established that every loss came
- On Oct. 10, Ledger confirmed an unauthorized implant in one affected customer's device
- During setup, a Ledger wallet displays 24 recovery words, which can recreate the wallet and its keys if the device is lost
- Ledger's Genuine Check verifies that a device contains an authentic Secure Element, the chip responsible for sensitive security operations
Summary
01 Ledger confirmed a hidden implant that stole recovery phrases during wallet setup. 02 The spy chip transmitted stolen recovery words over a mobile connection. In early October, customers in Southeast Asia discovered that their crypto had disappeared from Ledger hardware wallets that still seemed to be working normally. They bought the devices through CryptoBilis, an authorized reseller, and believed their private keys were protected inside a device built for that purpose. On Oct. 10, Ledger confirmed an unauthorized implant in one affected customer's device.