Ledger: Criminal Group Spent Months Implanting Malicious Hardware to Steal Seed Phrases, Sales Suspended via Distribution Channels in Southeast Asia and Hong Kong

Ledger has released an update on its investigation into the hardware wallet implant attack. According to its disclosure, an organized criminal group spent months purchasing genuine Ledger devices, disassembling them, and implanting custom hardware specifically designed to steal seed phrases, before reintroducing them to the market through distribution channels in Southeast Asia. The group also built a supporting infrastructure for seed phrase collection, asset theft, and money laundering. Ledger stated that the operation involved millions of dollars in investment.Ledger emphasized that this incident was a localized distribution channel attack, and that its chips, operating system, and servers were not compromised. The company has instructed authorized dealers and distributors in Southeast Asia and Hong Kong to suspend sales and has implemented new security rules, including prohibiting devices from being placed on shelves or display areas, and prohibiting the resale of returned devices.