A scammer who reportedly made millions through fake online job scams has lost $4.9 million in a hardware wallet attack. The individual had transferred the proceeds into three Ledger wallets, which were allegedly compromised by hidden spy chips designed to capture recovery phrases.
Once the recovery phrases were obtained, the attackers were able to access the wallets and steal 60 BTC, worth more than $4.9 million at the time of the incident. The case highlights the risks associated with hardware wallet security, especially when devices may have been tampered with before reaching their owners.
The incident is linked to the broader CryptoBilis attack, which has reportedly resulted in $102 million in losses across 324 wallets. It also serves as a reminder that even hardware wallets, widely considered a secure way to store crypto, are not immune to physical supply-chain attacks or compromised devices.