Ledger Makes Shocking Discovery in Crypto Theft Probe

Crypto hardware wallet firm Ledger has discovered a disturbing detail in its investigation into alleged crypto thefts. It has found that at least one piece of hardware had been tampered with by the insertion of a rogue piece of hardware.

Ledger's latest update, which was posted on Oct. 10, says it found the rogue hardware inside one of the affected users' devices. It was from the recent CryptoBilis security incident. CryptoBilis is an authorized reseller in Southeast Asia.

It is the first piece of concrete evidence of hardware tampering during the investigation. It is a frightening prospect that some Ledger wallets might have been tampered with surreptitiously before their users received them.

Whether or not this implant had anything to do with the alleged thefts, or how many devices might be affected, is still unclear.

Additionally, Ledger says CryptoBilis has ceased sales of all hardware wallets as a precautionary measure until the investigation is over.

Ledger says it is in touch with affected users and working with law enforcement to hunt down the culprits.

The alleged attack is particularly worrying, as it does not even necessarily mean the attackers had to hack into the secure element (that is, the chip inside the Ledger device that generates and secures the private keys). The alleged rogue hardware is supposed to tap into the communication lines between different internal parts of the wallet and the screen.