An investigation into hardware crypto wallets reveals modified devices circulating via third-party resellers in Europe and Southeast Asia equipped with hidden cellular modules for exfiltrating recovery phrases, alongside reported losses surpassing $93 million.
The compromised devices had additional mobile phone components, which allowed the theft of the recovery codes that users use to protect their funds. So far, reports indicate that at least $93 million worth of digital currencies have been stolen.
Where were the modified devices found?
The first affected wallet was found at a store run by reseller Cryptobilis in Malaysia, with the company immediately halting sales of all wallet brands. The reseller also operates in Indonesia and the Philippines.
A researcher investigating the issue found a similarly compromised device on Amazon Japan, which had been purchased from a Chinese seller and shipped from Malaysia. It is noted that Cryptobilis also sells other wallet brands, such as Trezor, Coolwallet, and Tangem, but so far there have been no reports of problems with products other than Ledger.
Who is at risk?
Devices sold directly from Ledger's official website are not affected by the issue. The risk only applies to those who purchased such devices from specific resellers and third-party sellers in regions of Asia and Europe.
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