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

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

The group also established a supporting system for collecting mnemonic phrases, asset theft, and money laundering, with Ledger stating that the scale of their investment reached several million dollars. Ledger emphasized that this incident is a localized distribution channel attack, and its chips, operating system, 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 banning the resale of returned devices.