Ledger Investigates Fund Losses Tied to Southeast Asian Reseller After Implant Found in Device
Ledger announced it is cooperating with authorities after users recently reported financial losses and one individual received a compromised hardware device. However, the manufacturer emphasized that the scope of affected products remains “limited.”
In a Sunday statement, the hardware wallet provider confirmed it has established contact with the impacted customers.
The Paris-headquartered company initially stated on Friday that an inquiry was underway following reports from Southeast Asian buyers who suffered fund losses after purchasing through a third-party reseller.
By Saturday, Ledger verified that a physical inspection of a device belonging to an affected user uncovered an unauthorized hardware modification.
While Ledger declined to disclose the exact financial losses, blockchain analyst Specter estimated that $86 million has been drained across devices.
“As the investigation continues, we are working with relevant authorities,” Ledger stated on Sunday.
The company further advised: “Also, we strongly advise users not to purchase from unauthorized resellers, where the risk of buying suspicious, counterfeit or modified devices is important as nothing operates under ledger security guidelines.
“Security isn’t static and this incident underscores why we continuously review and strengthen our distribution and anti-tamper processes.”
The situation came to light last week when Southeast Asian customers reported missing funds following purchases from CryptoBilis, a vendor based in Kuala Lumpur, Malaysia.
In response, Ledger urged anyone who bought from CryptoBilis to refrain from initializing their hardware wallets.
Ledger noted on Sunday that CryptoBilis has since halted the sale of its hardware wallets.
Social media users shared photographic proof of internal components added to Ledger products, suggesting the modification could capture private keys. The exact number of signing devices carrying this implant remains unverified.
Neither Ledger nor CryptoBilis provided immediate responses to inquiries from Bitcoin Magazine.
Security surrounding hardware wallets has gained significant attention following a July incident where hackers stole nearly $120 million in bitcoin from users of Coldcard devices.
Those devices, manufactured by the Canadian firm Coinkite, suffered from a firmware vulnerability that caused flawed seed phrase generation, enabling attackers to effectively guess investor recovery phrases.
In an unrelated security breach last month, rival hardware wallet maker Trezor disclosed that the personal details of nearly 81,000 customers were exposed after a data breach at its third-party fulfillment partner.
Data targeting has been a persistent threat this year, including an incident where scammers accessed customer information through Ledger’s payment processor, Global-e, to distribute phishing emails.
FAQ
Why is Ledger investigating fund losses in Southeast Asia?
Ledger launched an investigation after customers in Southeast Asia reported losing funds after purchasing devices from an unauthorized reseller.
What was found inside the compromised Ledger device?
Ledger confirmed that one of the impacted user’s devices contained an unauthorized hardware implant.
How much money was stolen in total?
While Ledger did not confirm the exact amount, blockchain investigator Specter reported that $86 million had been drained from devices.
Which reseller was linked to the tampered devices?
Customers reported losing funds after purchasing from CryptoBilis, a vendor located in Kuala Lumpur, Malaysia, which has since stopped selling hardware wallets.
