Allegations of a supply chain breach against Ledger, the manufacturer of cryptocurrency hardware wallets, are growing. Following the earlier discovery of physically modified Ledger devices, it is now claimed that spyware has also been found in devices purchased from various stores in Europe.
A user who made new statements on the subject on social media claimed that the security of Ledger’s supply chain in Europe has been compromised and argued that the company should immediately initiate a product recall process to protect its users.
According to the claimant, the same physical alterations were found on two separate Ledger devices purchased from different European stores. The user stated that after purchasing the second device, they videotaped the unboxing and once again encountered spyware inside.
Both devices examined were alleged to contain additional components, such as cables and an LTE communication module, that were not part of the original design. It is believed that these components may have been installed with the aim of leaking data from the devices.
The user argued that this situation might indicate a broader supply chain attack rather than an isolated incident, noting that the retailer in question has over 1,000 stores in 11 European countries. However, there is no confirmed evidence yet that other Ledger devices in these stores have also been affected.
Suspicions Turn Towards Distributor Operating Across Europe
The claimant stated that they initially believed the compromised devices had been previously purchased and returned, and then resold by stores.
However, he reported that a store employee he spoke to told him that the device he purchased was not a returnable item and that returned Ledger devices are sent directly to the manufacturer instead of being resold.
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The user stated that he sent the first device he found to former Mt. Gox CEO Mark Karpelès for examination, and that he would send the second device directly to Ledger.
Ledger also urged users who purchased their devices from sellers other than the manufacturer’s official store to carefully inspect their devices.
Mark Karpelès had previously claimed that some Ledger devices had hidden communication modules embedded in them and that these devices were able to pass the manufacturer’s official authenticity checks.
If the new allegations are confirmed, it is being considered that the incident may be a broader hardware supply chain attack affecting not just a few devices, but also physical sales channels across Europe.
However, at this stage, the extent of the attack, the number of affected devices, and potential perpetrators have not been independently verified.
*This is not investment advice.
Continue Reading: Important: Ledger Wallets Sold in Europe Are Also Alleged to Contain Spyware