Ledger Reveals Recovery-Phrase Implant as MediaMarktSaturn Pauses Sales

Ledger said Tuesday that attackers installed hidden hardware implants in some wallets sold through Southeast Asian reseller CryptoBilis, potentially exposing users’ 24-word recovery phrases and prompting a temporary European sales freeze. The implant could detect the phrase during device setup, decode it and transmit it over LTE through a provisioned eSIM. Ledger said the component was separate from the wallet’s Secure Element and did not alter its operating system, transactions or signatures. MediaMarktSaturn, a major European electronics retailer, suspended Ledger sales in stores and online on Oct. 13 after a customer in Germany reported finding an implant in a device.

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