Implanted chips in Ledger hardware wallets
On 15 October Ledger confirmed that a criminal group had fitted genuine hardware wallets with parts that capture the recovery phrase during setup, then put them on the market through resellers in Southeast Asia. As of 13 October, the thefts Ledger had confirmed were all tied to devices sold by authorised reseller CryptoBilis, and reports of implants from other channels were unconfirmed. Ledger's Genuine Check cannot detect these implants, and Ledger advises anyone who bought and set up a device from CryptoBilis to move their assets to a new device and a new recovery phrase.
Based on 20 sources, including Ledger, Ledger Support, Ledger Academy