Ledger is investigating reports that modified hardware wallets were used in a theft estimated at more than $90 million. The alleged compromise appears to involve supply-chain tampering, where devices may have been altered before reaching buyers.
This is a classic hardware security problem rather than a blockchain protocol bug. If an attacker can insert hidden components into a wallet or its packaging, they may be able to capture sensitive data even when the device’s core cryptographic chip remains intact.
The best defense is operational: source devices only from trusted vendors, inspect for tampering, and initialize wallets in a clean environment with independently verified firmware. Users should also move funds to newly generated seeds if they suspect a device was compromised.
For manufacturers and resellers, tighter chain-of-custody controls and authenticated hardware attestation can reduce exposure. Security reviews should extend beyond firmware to include distribution, refurbishment, and retail handling.