People are being robbed of crypto by a tiny chip implanted in their hardware, with $100 million said to have been stolen already
News Source
β’Mon, 12 Oct 2026 15:57:58 +0000
π° What Happened
PC Gamer reports that people are having cryptocurrency stolen by a tiny chip planted inside their hardware, with around $100 million said to have been taken. The reports centre on Ledger hardware wallets, which store crypto keys offline. Former Mt. Gox chief Mark Karpeles said he found a hidden circuit board inside a sealed wallet. The chip is said to copy the password and the 24-word recovery phrase. Ledger is investigating devices sold by a reseller in Malaysia.
π The Backstory
Hardware wallets are small devices that keep crypto keys away from the internet, so thieves cannot simply hack a computer. This attack is different because it targets the supply chain, planting a chip before the device even reaches the buyer. Recovery phrases are the master keys to a crypto wallet, and anyone who gets them can drain the funds. Analysts at Bitquery estimated losses of $92.9 million across 311 wallets, though Ledger has not confirmed those totals.
π― Why It Matters
It is a reminder that even gadgets sold as 'secure' can be tampered with, so where you buy them matters.
PC Gamer reports that people are having cryptocurrency stolen by a tiny chip planted inside their hardware, with around $100 million said to have been taken. The reports centre on Ledger hardware wallets, which store crypto keys offline. Former Mt. Gox chief Mark Karpeles said he found a hidden circuit board inside a sealed wallet. The chip is said to copy the password and the 24-word recovery phrase. Ledger is investigating devices sold by a reseller in Malaysia.
Hardware wallets are small devices that keep crypto keys away from the internet, so thieves cannot simply hack a computer. This attack is different because it targets the supply chain, planting a chip before the device even reaches the buyer. Recovery phrases are the master keys to a crypto wallet, and anyone who gets them can drain the funds. Analysts at Bitquery estimated losses of $92.9 million across 311 wallets, though Ledger has not confirmed those totals.
It is a reminder that even gadgets sold as 'secure' can be tampered with, so where you buy them matters.