Ledger Finds LTE Implant That Stole Recovery Phrases in Suspected $86M Drain

Ledger has identified a critical security vulnerability involving a hidden LTE implant capable of stealing 24-word recovery phrases from its hardware wallets. This malicious chip operates by reading the recovery phrase directly from the device's screen during the initial setup process, completely bypassing the Secure Element and its internal software protections. This method of compromise suggests a sophisticated supply chain attack, where devices might be tampered with before they reach the end-user. The article indicates this vulnerability is suspected to be linked to a substantial $86 million drain, highlighting the severe financial implications and the paramount importance of scrutinizing the provenance and physical integrity of hardware wallets, especially when first unboxing and configuring them for Bitcoin storage.