Ledger Confirms Implant in Reseller Units; MediaMarkt Suspends Sales

Ledger Security Breach Confirmed

Ledger has officially acknowledged a security flaw affecting devices sold through CryptoBilis, a reseller operating in several European markets. The company confirmed reports of a hardware implant within the devices capable of compromising users’ recovery phrases – the critical key to accessing crypto assets stored on Ledger hardware wallets.

CryptoBilis Targeted

The implant specifically targets devices sourced from CryptoBilis. Ledger stated that only units sold through this reseller are affected, and devices purchased directly from Ledger or authorized retailers remain secure. The vulnerability allows an attacker to intercept the 24-word recovery phrase during the wallet’s setup process.

MediaMarkt Response

In response to the confirmed breach, MediaMarkt, a major European electronics retailer, has temporarily suspended sales of all Ledger products across its stores. This precautionary measure aims to protect customers and allow for a thorough investigation into the extent of the compromised units. The suspension impacts multiple European countries where MediaMarkt operates.

Ongoing Investigation

Ledger is currently working with law enforcement and security experts to investigate the incident and identify the source of the implant. The company is advising users who purchased Ledger devices from CryptoBilis to contact support for assistance and potential remediation steps. The incident raises concerns about supply chain security within the hardware wallet industry and the risks associated with unauthorized resellers.

Source: The Block