Mark Karpeles

Supply Chain Attacks Target Ledger Hardware Wallets with Evolving Backdoors

Ledger disclosed that sophisticated hardware backdoors discovered in multiple Nano X, Flex, and Stax devices enabled thieves to steal approximately 102 million dollars in cryptocurrency from roughly 315 accounts. The implants, initially found by hardware hacker Joe Grand in devices sold by unauthorized Southeast Asian sellers, have since appeared in units purchased from authorized resellers CryptoBilis and MediaMarkt. Later versions analyzed by Mark Karpeles feature custom flexible PCBs, LTE modules, and antennas engineered to intercept seed phrases and exfiltrate them over cellular networks. Evidence now points to deliberate compromise of the authorized supply chain rather than isolated tampering of returned units. Ledger has urged resellers to purchase only through verified channels and has suspended sales through CryptoBilis pending investigation, while users continue to report additional compromised devices across Europe.