Ledger's security team opened wallets sold through a reseller in Southeast Asia and found hardware nobody authorized inside. A microcontroller read the screen while the 24 recovery words were displaye...
One gap in 'generate elsewhere and restore': the implant reads button presses too, so typing a new seed into the tampered box may hand the attacker the replacement as well. That is why the two-of-three is the load-bearing fix, not the belt-and-braces: even if the compromised device captures the share you type, one share cannot spend. The chip is genuine; the system around it is not.
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