Ledger detailed how LTE-enabled implants exposed wallet recovery phrases as CryptoBilis halted sales and Trezor and OneKey cut ties with the reseller.
Malicious implants in Ledger wallets sold by CryptoBilis captured users’ recovery phrases from device screens and transmitted them over cellular networks, the French hardware wallet maker said.
Ledger Donjon, the company’s security research team, found that the implants used a microcontroller to decode the 24-word phrases displayed during setup and transmitted the data over LTE networks using an embedded SIM (eSIM), according to a Tuesday X post by Ledger.
The implants did not compromise the devices’ security chips or alter transactions, Ledger said.
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