When your security hardware is the source of the breech - you got a problem!
Sophisticated bad actors stole ~$90M of crypto by hiding password readers in USB-like crypto hardware wallet devices sold by French firm Ledger.
Over many months, the bad guys bought genuine Ledger devices, opened them, fitted custom-built hidden components designed to capture the recovery phrase during setup, and put them back into distribution through resellers in South East Asia.
They built their own logistics and technology infrastructure with seeds collector servers, draining and laundering infrastructures. They were patient, they spent millions, and they struck in one coordinated operation, draining wallets.
There was no flaw in Ledger’s chip, operating system or servers. Ledger indicated their systems were not compromised, and that this was an attack on "the distribution channel after the devices left our control." https://qz.com/ledger-reseller-controls-spy-chip-crypto-theft-101426 #Crypto #CryptoCrime #Ledger #CryptoHardware #CryptoWallet #Hack #Security #CyberAttack #CryptoTheft