- Ledger investigates suspected crypto losses exceeding $86 million across three blockchains.
- CryptoBilis faces a sales pause as Ledger warns customers against setting up devices.
- Security researchers examine possible wallet tampering, but the cause remains unknown.
Ledger launched an investigation into suspected cryptocurrency theft involving customers who purchased hardware wallets from Southeast Asian reseller CryptoBilis. The Ledger wallet investigation follows reports of more than $86 million in potential losses across several blockchain networks.
On October 9, the company requested a temporary suspension of device sales and shipments while examining the incidents. However, Ledger has not confirmed the reported losses or their cause.
Ledger Wallet Investigation Prompts CryptoBilis Sales Halt
Ledger identified CryptoBilis as the reseller connected to customer complaints across Southeast Asia. The company operates as an authorized Ledger reseller in Indonesia, Malaysia, and the Philippines. As a result, the hardware wallet manufacturer asked CryptoBilis to suspend product sales and deliveries during its investigation.
In an October 9 statement, Ledger advised customers who purchased devices within the previous 90 days to delay setup. Customers already using those devices should consider transferring assets to a new Ledger signer with a fresh recovery phrase. The company said it would provide further updates as investigators examine the reported losses.
The Ledger wallet investigation has also raised questions about possible device tampering before delivery. However, the company has not established whether counterfeit hardware, altered devices, or another security issue caused the incidents.
Ledger Wallet Investigation Follows $86M Theft Estimates
On-chain researcher tanuki42 initially traced more than $72 million to addresses linked to suspected cryptocurrency theft. Another investigator, Specter, subsequently estimated losses exceeding $86 million across Bitcoin, Ethereum, and Tron. Neither figure has been independently confirmed, and the number of affected customers remains unknown.
Meanwhile, Binance co-founder Changpeng Zhao suggested that a supply chain attack involving one vendor could explain the incidents. Former Mt. Gox CEO Mark Karpeles also raised concerns about potential hardware modifications. Karpeles suggested examining device circuit boards for evidence of tampering.
The Ledger wallet investigation highlights risks involving hardware distribution and cryptocurrency self-custody. Hardware wallets normally protect private keys by keeping them offline, reducing exposure to online attacks. However, compromised devices could expose sensitive recovery information before customers begin using their wallets. Ledger has not confirmed a security flaw affecting its wider product range.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
