According to Decrypt, Ledger discovered an unauthorized LTE implant embedded in a device that allegedly enabled the extraction of a user’s 24-word recovery phrase during the setup process. The company stated that the hidden chip reads the phrase displayed on screen at initialization, while leaving the Secure Element and its associated software unaffected. Ledger did not specify how the implant was detected or removed, nor provide details on affected device models or distribution method. The discovery coincides with a suspected drain involving approximately $86 million, though Ledger has not confirmed responsibility or legal action. The firm emphasized that normal use of the Secure Element remained intact and operational during the incident. No user accounts, private keys, or additional wallet data were reported as compromised beyond the recovery phrase. Ledger’s statement focused on technical observation rather than user guidance at this stage.
