Spy chips were found inside Ledger wallets sold by one reseller in Southeast Asia. The chip read people’s 24-word seed phrase off the screen during setup and sent it out over a hidden SIM. Then the wallets got drained. Reports say $70M+ gone, some say over $93M. The device worked normally. Even Ledger’s Genuine Check can’t detect it. Should you still use a hardware wallet? Yes. The problem was where people bought them. Buy only from the official store. If a seed phrase is already in the box, it’s a scam. Make the 24 words yourself and keep them on paper only. Market-wise, your coins aren’t the problem. Keys got stolen, not blockchains. But trust in self-custody just took a hit, and that’s good news for exchanges and custodians. And watch out for fake “Ledger recall” messages this week. Nobody legit will ever ask for your 24 words.