Ledger Hardware Wallets Compromised: Criminal Gang Steals Cryptocurrency Assets

Hardware wallet manufacturer Ledger has reported a major supply chain security incident. Some devices in circulation have been secretly fitted with additional electronic components that can read the recovery phrases displayed on the screen during the user's first initialization and transmit them externally, resulting in the theft of cryptocurrencies. Ledger has asked distributors in several Southeast Asian countries to temporarily stop selling affected products. The incident began on October 9, and the source of the compromised devices was traced back to the Malaysian distributor, Cryptobay. Blockchain researchers estimate that hundreds of wallets may be affected, with potential losses of up to $930 million. Tether has frozen about $100 million worth of USDT involved in the incident. Ledger confirmed that most of the stolen coins were concentrated in the Malaysian distributor's channel, and investigations into suspected tampered devices in other regions are ongoing. Security experts advise not to initialize or transfer assets to new devices purchased from third-party channels.