The entire point of a hardware wallet is that the seed phrase never passes through any intermediary device. This incident struck right at that core premise: Ledger has confirmed that devices sold through the CryptoBilis channel contained a non-original hardware component secretly planted inside, designed to steal users' recovery phrases.
The seed phrase is the final lock on a hardware wallet—once it leaks, everything inside the wallet is effectively exposed, since anyone can use it to reconstruct the private key and drain the funds. Ledger's statement specifically pointed to units sold through CryptoBilis as the source of the problem, not devices from official channels.






