Ledger Reveals Millions-Strong Operation Behind Attack on Crypto Wallets

Ledger has shared a reconstruction of an attack that involved modified hardware wallets. An organized criminal group invested millions in technology and logistics to intercept secret recovery phrases and drain wallets. The criminals purchased genuine Ledger devices, modified them with hidden components, and resold them through resellers in Southeast Asia. The hidden hardware could intercept the recovery phrases displayed on the screen during installation, allowing wallets to be restored on other devices. Ledger reports that the criminals prepared for months and spent millions on servers and laundering stolen crypto. The company has temporarily halted sales in seven Asian markets and is implementing stricter rules for sellers. Returned devices may never be resold, and stores must keep products off shelves until purchased. Ledger is working on new security for the devices but has not yet released details.

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