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Ledger reviews reseller controls after $93m wallet theft

Ledger is reviewing reseller sales controls and device tamper protections after an implanted LTE module exposed recovery phrases and enabled roughly $93 million in crypto theft.

The Top Crypto Editors 2 min read

Ledger reviews reseller controls after $93m wallet theft

Is Ledger changing how its wallets reach customers? The company is reviewing its sales policies and anti-tampering protections after hardware implants in reseller-sold devices were linked to roughly $93 million in reported crypto theft. Bloomberg reports that Ledger asked resellers in Southeast Asia and Hong Kong to suspend sales while it investigates.

Ledger’s response to the hardware implant attack says the affected devices were sold through resellers and describes the incident as non-systemic. The company’s security lab, Ledger Donjon, examined the implant, and Ledger asked authorized resellers and distributors in the affected markets to pause sales.

How did the implant expose recovery phrases?

A hidden cellular implant could capture a wallet’s recovery phrase during setup, according to Tom’s Hardware’s report on Ledger’s review. The phrase is displayed on the device as a user sets it up; the report says the implant read the display output and transmitted the phrase over LTE. Whoever obtains that phrase can recreate the wallet’s keys and move its assets.

That route matters because Ledger’s normal software authenticity check did not detect the physical modification, Tom’s Hardware reported. The implant sat outside the device’s firmware system, so the incident raised a question about how a genuine device can be altered before it reaches a buyer. Ledger says its own sales channels and infrastructure remain unaffected.

What changes is Ledger considering?

Ledger CEO Pascal Gauthier said the review covers controls for both direct sales and resellers, and that the company will share what it can, according to Tom’s Hardware. Chief technology officer Charles Guillemet said Ledger is also assessing device anti-tampering protections, Bloomberg reported. The company has not announced a date for completing the review or detailed specific changes.

For you, the immediate distinction is where a device came from: Ledger’s confirmed cases concern reseller-sold units, not a compromise of its direct sales channel. The next thing to watch is Ledger’s promised update on reseller controls and physical tamper detection; no publication date has been set.

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