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Ledger warns CryptoBilis wallets include LTE implants that steal recovery phrases

Ledger says malicious implants in the devices decode 24-word recovery phrases on screen and send them over LTE using an embedded SIM, while Ledger says the chips and transactions were not altered.

Reported · Written up by our desk · Market Structure

Ledger says some wallets sold by CryptoBilis were found to include malicious LTE-enabled implants that exposed users’ wallet recovery phrases, after CryptoBilis halted sales and Ledger’s partners moved to cut ties. Cointelegraph reports that Ledger detailed the issue in a Tuesday X post and that the implant behavior surfaced after the reseller stopped selling the affected wallets.

According to Ledger’s description, the implants used a microcontroller to decode the 24-word recovery phrases displayed during wallet setup, then transmitted the data over cellular networks using an embedded SIM. Ledger also said the implants did not compromise the devices’ security chips or alter transactions, The Defiant reported.

The Defiant also notes that Ledger said its Genuine Check tool cannot rule out this type of tampering. Cointelegraph reports that Ledger said Trezor and OneKey cut ties with the reseller following the findings.

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