Ledger Pauses Reseller Sales After $86 Million Drain Claims: Were Devices Tampered?
Key Summary
Ledger has paused sales of its hardware wallets from Southeast Asian reseller CryptoBilis after reports of $86 million losses, with suspected Ledger losses above $86 million. The move comes amid concerns about tampered devices, which have been a known risk for hardware wallets sold outside official stores.
Ledger Investigates $86 Million Losses from Reseller CryptoBilis
Investigation Underway
Ledger has asked CryptoBilis to halt sales of its hardware wallets while it investigates reports of $86 million losses. The move came about an hour after an analyst put suspected Ledger losses above $86 million. Ledger has not confirmed the figure or said whether any devices were tampered with. Its warning covers only recent buyers from one reseller in Southeast Asia. Ledger has not endorsed the $86 million total and has not explained how funds left users' wallets.\ \n\n
Background on Hardware Wallets
A hardware wallet is a small device that keeps the secret keys to a person's crypto offline. Ledger is one of the best-known makers. On Friday, Ledger Support named the seller as CryptoBilis. The Malaysian shop, founded in 2020, sells crypto merchandise and Ledger devices. It also operates in Indonesia and the Philippines. Ledger told anyone who bought from the shop in the past 90 days not to set the device up. Buyers who already had were told to move funds to a new device with a new seed phrase. A seed phrase is the 24-word backup that controls a wallet.\
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Previous Incidents
A Second Hardware Wallet Scare Since August Tampered devices sold outside official stores are a known risk. In April, a researcher found fake Ledger units on a Chinese marketplace that sent PINs and seed phrases to attackers. Separately, in August, a Coldcard firmware bug drain cost Bitcoin holders about $70 million. Coldcard is a rival hardware wallet. Ledger said it will share updates as the investigation progresses. Whether the CryptoBilis devices were altered before reaching buyers remains unanswered.