This story keeps getting bigger. CryptoBillis, a distributor accused of selling users Bitcoin hardware wallets implanted with spyware chips, was reportedly transferred by its owner in the first half of the year to a Chinese man named JIA MING, whose profile lists Wuchang, Heilongjiang, as his location.

At the same time, Karpelès, who lives in Tokyo, bought a Ledger cryptocurrency hardware wallet from a Chinese seller on Amazon Japan.

After taking the hardware apart, investigators found LTE, eSIM, and antenna components inside. These could be used to remotely read the mnemonic phrases and private keys for users’ Bitcoin and Ethereum. Before users store cryptocurrency on the hardware wallet, the spyware chip can capture the screen when the device displays the recovery phrase and transmit its contents, obtaining the mnemonic phrase and private key and ultimately transferring the cryptocurrency.

The estimated losses from theft currently exceed $86 million, involving hundreds of wallets, including Bitcoin and Ethereum. Since many devices implanted with spyware chips are still being activated by users and used to store cryptocurrency, the losses may continue to grow.