Ledger reveals CryptoBilis hardware wallets contained covert data-stealing chip

Hardware wallet manufacturer Ledger has publicly explained how a security breach occurred in devices sold by a third party, CryptoBilis. The company stated that a covert 'spy' chip was embedded within the physical hardware of these wallets. This hidden component was capable of transmitting users' cryptocurrency wallet recovery keys over a mobile network. The exploit functioned without requiring any alteration to Ledger's own software, representing a sophisticated hardware-level attack.