Ledger Details Hardware Wallet Tampering Aimed at Recovery Phrases

Ledger said a criminal group altered genuine hardware wallets before they reached Southeast Asian resellers, adding hidden components designed to capture recovery phrases during setup. The company’s Oct. 15 disclosure says the operation continued for many months. Ledger asked authorized resellers and distributors in Southeast Asia and Hong Kong to pause sales while it investigates. It also instructed sellers to keep devices off shelves and displays, hand each unit to the buyer at purchase and never resell a returned wallet, even if it appears unopened. Ledger’s security team dismantled an implant and examined devices bought from stores as well as warehouse samples. The company said every unit examined was clean, and that its secure element chip, BOLOS operating system and internal servers were unaffected.

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