Ledger confirms unauthorized hardware implant; losses may exceed $86M

Hardware wallet maker Ledger, which has been investigating reports of crypto losses involving its devices purchased from Southeast Asian reseller CryptoBilis, confirmed that one of the impacted users’ devices contained an unauthorized hardware implant.

Ledger said it was reaching out to users as part of its ongoing investigation into the losses, which investigator Specter estimated may exceed $86 million across Bitcoin, Ethereum and Tron.

As a measure of precaution, CryptoBilis confirmed that it had ceased sales of all hardware wallet inventory until the investigation is concluded. Ledger is in active communication with CryptoBilis on next steps.

Ledger recommends users who purchased one of their devices from this reseller to not initiate set-up if they have not yet done so. If they have set up their Ledger device, they should consider moving assets to a new Ledger signer (with a new seed).

Cointelegraph reported on Friday that CryptoBilis was listed as an authorized Ledger reseller in Indonesia, Malaysia and the Philippines.

Ledger has not confirmed how many customers may be affected or the value of the reported losses.

In a statement to Cointelegraph, Ledger said the incident appeared to be isolated to the single reseller and its market.

“Ledger’s infrastructure, systems and services were not compromised,” the company said, adding that its investigation remained ongoing.