Ledger wallet tampering suspected after reports of crypto thefts

“Ledger has discovered that a hardware implant in some of its crypto wallets sold through the reseller CryptoBillis is intercepting seed phrases during setup and sending them via an embedded SIM to attackers, who have stolen more than $86 million from hundreds of wallets. The tampering appears confined to the supply chain and does not affect devices purchased directly from Ledger. The company has paused sales from CryptoBillis and released a checklist for users to verify their devices. For U.S. consumers, the incident raises concerns about the security of hardware wallets and the reliability of third‑party resellers, potentially prompting tighter regulatory oversight and a shift toward direct purchases from manufacturers. Expert Analysis: This breach highlights the critical need for robust supply‑chain verification in the crypto industry; without it, the U.S. market risks a loss of consumer trust and could face increased regulatory scrutiny that may reshape how hardware wallets are distributed and sold.”