Stablecoins
Spy Chip Discovered in Ledger Wallets Linked to Crypto Theft Investigation
Recent reports have surfaced regarding a hidden spy chip found inside Ledger hardware wallets, raising concerns over security and potential thefts. The discovery was made by Mark Karpelès, former CEO of Mt. Gox, who revealed that the chip was cleverly concealed behind the screen of a sealed device, equipped with an antenna and SIM card capable of transmitting sensitive recovery phrases.
Ledger has initiated an investigation following numerous reports of emptied wallets linked to purchases from CryptoBilis, an authorized reseller operating in Southeast Asia. On October 9, 2026, Ledger instructed CryptoBilis to cease all sales and shipments immediately, advising customers who purchased devices in the last 90 days to leave uninitialized wallets unopened. Those who have already set up their wallets are urged to transfer their assets to new devices with fresh seed phrases.
While Ledger maintains that its systems and directly sold devices remain uncompromised, the investigation is ongoing. Analysts estimate that losses could range from $72 million to $93 million, with significant amounts of Ethereum, Bitcoin, and Tether reportedly involved. Tether has already frozen approximately $10 million linked to suspected theft addresses.
As the investigation unfolds, users are advised to remain vigilant and follow Ledger's guidance to safeguard their assets.
FAQ
What was discovered in Ledger hardware wallets?
A hidden spy chip was found inside Ledger hardware wallets, which is capable of transmitting sensitive recovery phrases.
Who revealed the discovery of the spy chip?
Mark Karpelès, the former CEO of Mt. Gox, revealed the discovery of the spy chip.
What should customers do if they purchased Ledger devices from CryptoBilis?
Customers who purchased devices in the last 90 days are advised to leave uninitialized wallets unopened and transfer assets to new devices with fresh seed phrases if they have already set up their wallets.
What is Ledger's stance on the security of their systems?
Ledger maintains that its systems and directly sold devices remain uncompromised, although an investigation is ongoing.
What are the estimated losses associated with this security breach?
Analysts estimate that losses could range from $72 million to $93 million, involving significant amounts of Ethereum, Bitcoin, and Tether.