Modified Ledger wallets transmit recovery phrases through hidden cellular hardware

Attackers are selling modified Ledger Nano X wallets that intercept recovery phrases displayed on the screen and transmit them through hidden cellular hardware, heise reported, citing Tibane Labs' analysis. The added chip reads the connection between the Secure Element and screen without altering the Secure Element itself. An LTE modem, eSIM and antenna send the phrases to attackers, giving them control of the associated cryptocurrency. Blockchain observers identified over 300 affected wallets depleted of approximately 93 million US dollars. Ledger advised customers who bought from Malaysian dealer Cryptobilis in the last three months to stop using those wallets and move holdings elsewhere, and prohibited further sales by the dealer. Ledger acknowledged one manipulated wallet and customer loss but has not confirmed the full damage.