Ledger Discovers LTE Implant That Stole Recovery Phrases in $86M Attack

LTE implant — Hardware wallet maker Ledger has identified a sophisticated hardware implant that siphoned users’ 24-word recovery phrases, a discovery linked to a suspected $86 million asset drain.

The company’s investigation found that the implant, a hidden LTE chip, was placed on the circuit board of a limited number of Ledger Flex devices. This chip was designed to read the recovery phrase directly from the screen as it was displayed during the device’s initial setup process. The attack was highly targeted, bypassing the wallet’s Secure Element chip and its core software entirely.

Ledger stated that the physical tampering was extremely difficult to detect without specialized equipment, as the implant was designed to blend in with the legitimate components. The company believes the compromised devices were part of a supply chain attack before they reached consumers.

The firm has urged all Ledger Flex owners to verify the integrity of their devices using a newly released diagnostic tool. It also reiterated that the vulnerability was not present in its other product lines, such as the Ledger Nano S Plus or Ledger Stax.