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Slow Fog Analysis suggests hardware implantation to steal mnemonic phrases from Ledger

The Chief Information Security Officer of Slow Mist Security, 23pds, stated that if the modification of the Ledger device's PCB is indeed as described by former Mt. Gox CEO Mark Karpelès, the attacker would possess a considerable level of technical skill.23pds mentioned that the possible attack process involves the wallet generating a mnemonic phrase within a secure element and displaying it on the screen for the user to write down. A malicious module could obtain the displayed content through screen data lines such as SPI, record the complete mnemonic phrase, and then send the data to the attacker via LTE/eSIM. The secure element can prevent the private key from being directly read or exported, but it cannot stop external modules from accessing the information currently displayed on the screen. He noted that the above analysis is based on the premise that the PCB has indeed been modified in the described manner, and the relevant attack paths and hardware implantation still require independent verification.Mark Karpelès previously stated that a Ledger hardware wallet he received was suspected of being implanted with a spy module. The device came from Malaysia, the outer packaging was intact with shrink wrap, and the implant was hidden in the position where the screen originally had a cushion, containing LTE communication components, an antenna, eSIM, and a microcontroller connected to the Ledger SPI bus, capable of analyzing the characters displayed to the user and sending relevant data after the mnemonic phrase setup is completed.

first_img Hyperliquid Co-Founder: Self-Custody and Transparency are the True Advantages of On-Chain Finance

According to The Block, Jeff Yan, co-founder of the decentralized perpetual contract trading platform Hyperliquid, stated during a fireside chat at the Korea Blockchain Week 2026 that around-the-clock trading is not the essential difference between on-chain trading venues and traditional exchanges. He pointed out that cryptocurrencies do not need to adhere to traditional market opening hours because these assets inherently possess international attributes, and some traditional exchanges have already begun to actively extend their trading hours.Yan emphasized that the more enduring value of on-chain finance comes from allowing users to retain control and custody of their funds, which helps to avoid a common single point of failure risk. In his view, once a counterparty, intermediary, or even custodian encounters issues, the ability to self-custody becomes particularly crucial.In addition, transparency constitutes another distinct feature of on-chain trading. Although it does not have a strong appeal in serving ordinary consumers, it is essential for building trust in the entire system. In a system controlled solely by a private organization, users cannot obtain the same level of trust and neutrality guarantees.He also mentioned that for assets lacking publicly available prices during the closing hours of traditional exchanges, continuous trading remains necessary. He cited commodities, stocks, and Pre-IPO targets that had already traded on Hyperliquid before the reference market opened as examples to illustrate that the demand is indeed real.
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