MediaMarktSaturn, the parent company of European electronics retailer MediaMarkt and Europe's largest consumer electronics retailer by sales, has removed Ledger hardware wallets from its stores and online platforms across all of its markets as a precautionary measure following reports of tampered devices. Ledger is a France-based manufacturer of hardware wallets — small offline devices designed to store the keys that control cryptocurrency funds.

“We did this as a precautionary measure,” a company spokesperson said, adding that the retailer was in contact with Ledger and was taking the incident seriously.

The withdrawal follows reports that customers found unauthorized hardware components, including cellular modules, inside Ledger devices purchased from separate MediaMarkt stores in Germany. Ledger said no funds had been reported stolen in connection with the German case.

The incident forms part of a broader investigation into cryptocurrency thefts involving devices sold through CryptoBilis, a Southeast Asian reseller. Ledger confirmed that unauthorized hardware implants in affected devices could capture users' 24-word wallet recovery phrases from the screen during setup and transmit them over a cellular network using an electronic SIM card, meaning the transmission would not depend on the owner's computer or internet connection. Earlier reporting by BitcoinKE on the implant cited crypto losses exceeding $80 million.

The recovery phrase captured by the implant can be used to restore a cryptocurrency wallet and gain access to its funds. Ledger said the implant did not modify the device's secure chip or operating system, and that it had no indication that its own infrastructure, systems, or services had been compromised.

The company has not confirmed the total value of losses or the number of affected customers. It said all confirmed thefts linked to the incident involved devices sold through CryptoBilis, while investigations into reports involving other devices and locations were continuing.

The episode adds to a run of supply-chain security developments in the hardware wallet industry. Fellow manufacturer Trezor has moved to cut hardware wallet resellers in a supply-chain security overhaul, and separately said that data belonging to roughly 14,000 customers was exposed following a breach at a shipping partner. A case study examining a Coldcard Bitcoin wallet exploit has also drawn attention to hardware security vulnerabilities affecting cold storage devices.

The withdrawal by MediaMarktSaturn underscores the supply-chain risks facing hardware wallet manufacturers. Devices designed to keep cryptocurrency recovery phrases offline — a core security feature of such products — can be compromised if unauthorized components are introduced at any point before they reach customers.

The retailer's decision applies across its international markets rather than being limited to individual stores or specific online sales channels. Attention now turns to the continuing investigations, including whether any confirmed thefts extend beyond devices sold through CryptoBilis.

Source: BitcoinKE