Ledger: A gang implanted malicious hardware for months to steal mnemonic phrases, sales in Southeast Asia and Hong Kong distribution channels suspended

Ledger announced the progress of the investigation into the hardware wallet implantation attack. According to their disclosure, an organized crime group spent months purchasing genuine Ledger devices, disassembling them, and implanting custom hardware specifically designed to steal mnemonic phrases, then reintroducing them to the market through Southeast Asian distribution channels.

The group also established a supporting system for collecting mnemonic phrases, stealing assets, and laundering money, which Ledger claims involved an investment of millions of dollars. Ledger emphasized that this incident is a localized distribution channel attack, and their chips, operating systems, and servers were not compromised. The company has requested authorized distributors and resellers in Southeast Asia and Hong Kong to suspend sales and implement new security regulations, including prohibiting the display of devices on shelves or in display areas, as well as prohibiting the resale of returned devices.