Ledger Spy-Chip Attack Exposes Crypto Wallet Supply-Chain Risks

Were Ledger’s systems hacked?

No. Ledger said the confirmed thefts involved physically tampered devices sold through CryptoBilis, rather than a breach of its software or internal systems. A hidden chip reportedly captured users’ 24-word recovery phrases during setup and transmitted them over a mobile network.

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How much cryptocurrency was stolen?

Blockchain researchers estimated losses of up to $93.2 million across more than 300 wallets. Ledger had not independently confirmed the total loss amount as of CoinDesk’s October 13 report.

Why does the attack matter for Ledger’s business?

The incident threatens customer confidence in Ledger’s hardware security and reseller network, potentially increasing costs for investigations, device protections and distribution controls. The financial impact on revenue and profitability has not been disclosed.

Are all Ledger hardware wallets affected?

No confirmed evidence established that all Ledger devices or sales channels were affected. Ledger said the confirmed losses involved CryptoBilis-sold devices, while reports of implants elsewhere were still being investigated.

What should affected Ledger customers do?

Customers who bought devices through CryptoBilis and have not initialized them should not set them up. Those who have used them should transfer their assets to a new device with a newly generated recovery phrase, following Ledger’s guidance.

What happens next for Ledger?

Ledger is investigating where the devices were tampered with and reviewing reseller controls and anti-tampering protections. The number of compromised devices, the full financial losses and the identity of those responsible remain unresolved.