Suspected spy hardware in Ledger wallets linked to $86 million crypto theft

Reports suggest a covert hardware component hidden under the display of some Ledger crypto wallets may be responsible for a large-scale theft of cryptocurrency valued at more than $86 million. The implant allegedly records the seed phrase shown during the device's initial configuration and relays the data through an integrated SIM card to attackers, who then empty the victims' accounts. The compromised units were primarily distributed by the reseller CryptoBillis and have impacted users across Southeast Asia.

Ledger has requested CryptoBillis suspend all wallet sales while a formal investigation proceeds, emphasizing that devices purchased directly from Ledger show no signs of compromise. The company has also provided instructions for users to verify whether their hardware has been altered. No evidence points to a breach of Ledger's own internal systems.