Warning on Wallet Risk: Embedded Chip in Ledger

Warning on Wallet Risk: Embedded Chip in Ledger. A review of an embedded component in the Ledger wallet highlighted supply chain risk; the $93 million theft has not yet been confirmed.

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The discovery of an unauthorized electronic component in a ledger hardware wallet has drawn attention to the security of the distribution path of these devices. According to CryptoSlate, the ledger confirmed the existence of this fragment in a device that was procured from independent vendor CryptoBilis.

An investigation by the Ledger security team revealed that the embedded chip was able to record and send a 24-word recovery phrase when displayed during the boot process with an LTE connection and an electronic SIM card. This part worked separately from the operating system and the main security part of the device; Therefore, the normal appearance of wallet operation does not necessarily reveal hardware tampering.

Ledger said that the confirmed theft cases related to this incident were related to CryptoBilis devices. This seller has stopped selling. Regarding similar reports from other stores in Germany and Singapore, Ledger has yet to confirm a link or chain.

Trezor has announced that it will end the licensing of some selected vendors on January 1, 2027 and tighten its supply chain controls. The company said that it did not find any evidence of tampering with its own devices and this is a preventive measure; The number or name of the involved sellers has not been announced.

Some independent researchers have estimated the potential losses related to this case to be close to 93 million dollars, but Ledger has not confirmed the total of these losses or the number of affected users. The company also said that its systems and internal services were not compromised in this incident.

This case shows that even keeping the keys offline does not eliminate the risk of buying a tampered device by itself. For users, the source of purchase and the protection of the recovery phrase are still of fundamental importance.

Analysts believe that the reported incident is a reminder that the security of the wallet is not limited to the chip and software of the device, and the distribution chain is also important. Iranian users should never enter a recovery phrase on a connected device or screen, buy the device from a reputable seller, and never transfer inventory due to an unverified report. Independent verification of details is necessary to gauge the scope of risk and the market.