Ledger is currently investigating allegations that over $86 million in cryptocurrency has been stolen from several wallets associated with devices distributed by a Southeast Asian reseller, CryptoBilis. Although the reported losses have not been independently verified, the situation has drawn significant attention online, particularly regarding the draining of assets from Bitcoin, Ethereum, and Tron wallets.
Investigation Launched Following Theft Reports
The hardware wallet manufacturer announced on Friday its inquiry into the situation, as concerns grow over a potential supply-chain attack that may have compromised the devices sold by CryptoBilis. According to blockchain investigator Specter, who shared findings on X, the suspected theft involves numerous wallets, but the exact amount of affected assets remains unconfirmed.
In response to the reports, Ledger has instructed CryptoBilis to cease all sales and shipments immediately. Customers who have purchased devices from this reseller in the last 90 days are advised against setting them up. Those who have already activated their wallets should consider transferring their assets to a new Ledger device with a fresh recovery phrase.
The investigation comes at a time when the crypto industry is reeling from a series of security breaches. Last month, Bitget, a cryptocurrency exchange, reported losses exceeding $350 million due to a hack. Other notable security incidents this year include a $320 million exploit on the Liquid Network and a $295 million breach involving Drift.
A potential explanation for the theft could involve tampering with the hardware wallets before they reached customers, allowing attackers to pre-load devices with known recovery phrases. This would enable unauthorized access to user funds, differing from a direct breach of Ledger’s own systems. However, there has been no confirmation that this type of tampering is responsible for the reported losses.
As the inquiry proceeds, Ledger has promised to provide further updates regarding the situation and any findings related to the number of affected users and the total value of the lost cryptocurrency.