Hardware wallet supply chain attack leads to $100 million stolen, former Mt. Gox CEO Mark Karpelès reveals Ledger attack details

Odaily News: According to monitoring by Bitcoin News, Bitcoin News released a podcast in which former Mt. Gox CEO Mark Karpelès and Foundation CEO Zach Herbert discussed the largest supply chain attack in crypto industry history. Mark Karpelès stated that he discovered a spy implant 3 weeks before the funds were stolen and contacted Ledger, but received no response. The implant had a built-in hidden cellular modem that could directly read the seed phrase on the screen and passed Ledger's own checks; even setting a passphrase could not prevent the seed phrase from being stolen. Mark Karpelès stated that with $5 million, he could create an implant that would only be detectable through X-rays. The program also discussed the hardware wallet reseller model, the Malaysian reseller behind the attack, on-chain tracking of stolen crypto assets, the spread of the attack to Europe, why Trezor was not targeted, hardware wallet security, and multi-party computation solutions. The program timeline shows that the amount stolen from hardware wallets reached $100 million, of which $86 million was transferred out within 24 hours.