how can the implant send the seed words to an attacker? doesn't a crypto wallet have to talk an application on the host computer? wouldn't the communication between the wallet and the host computer never allow for the seed words to be sent from the wallet to the outside world? in other words how could an "implant" tampering of the wallet make the host computer suddenly start sending seed phrases to third parties?
The attackers added their own tiny 4G or 5G board.
They put an eSIM in the device…
There is an eSIM with worldwide data in the device.
Though it's not what happened in this case, you could tamper with a crypto wallet to make it emulate a USB keyboard and once connected, send a series of keystrokes to download and run an exploit.
The implant could fabricate a reason to connect to a host computer. Like "Cannot display seed words, connect to a computer to debug"
They sniffed the LCD interface and OCR'ed the seed words when they were displayed using an implanted tiny CPU. This is a very sophisticated attack.