Theft From Ledger Crypto Wallets Linked to Modified Devices

Complaints about money being stolen from Ledger crypto wallets are increasing. The incident is believed to be linked to devices purchased from the seller CryptoBillis and later modified. Ledger has asked CryptoBillis to stop selling these crypto wallets until the investigation is complete. The company confirmed that an unauthorized electronic component had been added to one victim’s device.

Photos and videos shared on X and Threads show a small circuit board beneath the screen. This component allegedly captures information displayed on the screen, including the seed phrase provided when the device is first set up. A seed phrase is a set of secret words needed to restore a crypto wallet and access the funds in it. The circuit board can send this information to the attacker using a built-in SIM card.

The people behind the attack are said to have stolen more than $86 million in cryptocurrency from hundreds of wallets. That is approximately more than 146.2 million manats. The incident has mainly affected users in Southeast Asia and devices sold through CryptoBillis. In such attacks, the device is modified and additional components are installed before it reaches the buyer.

There are currently no signs that Ledger’s systems have been hacked. No information has been released indicating that crypto wallets purchased directly from the company have been affected. Ledger has published instructions for users on how to check their devices for signs of tampering. At the current stage of the investigation, suspicion is primarily focused on devices purchased from CryptoBillis.