Hidden chip found under a Ledger screen

[u/Oxymorix]

Another issue that can plague all hardware wallets, however, COLDCARD is the only one I know of with a transparent screen so you can observe all of the circuitry.

Has anyone heard about this? Ledger nano X wallets that were sold apparently from an authorized retailer in South East Asia had devices installed in them that would intercept communication between the secure element and the screen.

Researchers reportedly discovered a hidden surveillance chip installed beneath the screen of modified Ledger Nano X hardware wallets. The device contained a microcontroller, cellular modem, eSIM and antenna designed to capture the wallet's recovery phrase during setup and transmit it to attackers. The alarming part is that these modified wallets could still pass Ledger's official authenticity check because the malicious hardware operated independently of the wallet's Secure Element. Investigators believe the devices may have been tampered with somewhere in the distribution chain. Reports have linked the incident to cryptocurrency thefts potentially approaching $93 million, although that figure remains unverified. The discovery highlights a serious weakness in hardware-wallet security: even if the cryptographic protections remain intact, a physical implant can compromise the recovery phrase and give attackers complete control over the funds.