Ledger reviews sales controls after wallet implant thefts
Ledger is reviewing sales and anti-tamper controls after modified wallets sold through CryptoBilis were linked to crypto thefts estimated at $93 million.
The Blockheight Editors··2 min read
Ledger is reviewing sales and anti-tamper controls after hardware implants in wallets sold through reseller CryptoBilis were linked to an estimated $93 million in crypto thefts, according to Tom’s Hardware’s report on the review. Ledger began investigating reported losses on October 9 and confirmed that some CryptoBilis devices had been tampered with, BleepingComputer reported.
How did the implant expose wallet funds?
Ledger’s Donjon security team said the implant decoded the wallet’s 24-word recovery phrase and sent it over LTE using an eSIM. The added component did not alter the device’s Secure Element or operating system, so Ledger’s integrity checks did not detect it, BleepingComputer reported.
The recovery phrase can be used to access and move the assets protected by a wallet. Tom’s Hardware reported that Ledger CTO Charles Guillemet advised owners of suspected tampered devices to contact support for instructions to return them for examination.
What sales steps has Ledger taken?
Ledger asked resellers and distributors in Southeast Asia and Hong Kong to halt wallet sales and remove products from shelves while it investigates, according to BleepingComputer. The company said all confirmed fund losses involved devices sold by CryptoBilis, which it had already told to stop sales and shipments.
CEO Pascal Gauthier said Ledger is reviewing controls for direct sales and resellers. Tom’s Hardware reported that Ledger also plans to review anti-tampering protections and work with researchers and other vendors on the assessment.
What remains unresolved?
The $93 million figure is an estimate cited by Tom’s Hardware; Ledger has not confirmed the total losses or number of affected users. BleepingComputer said some users reported suspicious devices from other sellers, but Ledger had confirmed losses only involving CryptoBilis at the time of its report.
Ledger’s review and investigation are ongoing. The company has not announced when it will complete the review or what changes it will make to sales and anti-tamper policies.
Source material
- Tom’s Hardware’s report on the review — tomshardware.com
- BleepingComputer reported — bleepingcomputer.com