Ledger implant raises hardware wallet supply chain doubts
Security researchers say buyers cannot realistically spot tampering with hardware wallets after Ledger confirmed an unauthorised implant in a device sold through a reseller.
Why it matters: The incident shows that tampering can occur through authorised resellers, leaving buyers dependent on checks that security researchers say cannot catch every attack.
Key points
- Ledger confirmed on Saturday that one affected device contained an unauthorised implant
- Malicious implants in Ledger wallets sold by CryptoBilis captured recovery phrases and sent them over cellular networks
- Trezor said on Tuesday it would cut the number of resellers as a preventive step
Hardware wallet supply chain risk has returned to the centre of crypto security debate after Ledger confirmed an unauthorised implant in one of its devices. Losses were reported on Friday and Ledger confirmed the implant on Saturday, Cointelegraph reports.
Security researcher Joe Grand told Cointelegraph on Tuesday that ordinary owners cannot be expected to detect sophisticated tampering. Grand, who specialises in hardware security and has recovered crypto from locked wallets, said even technical people do not inspect every device they receive. Crypto analyst Mati Greenspan said he has never used a hardware wallet since entering the industry in 2013, arguing it adds another chain of trust.
Trezor said the Ledger implants capture screen information without altering firmware, and that it has not seen this attack on its own devices. On Tuesday it said it would reduce its number of resellers as a preventive step.
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