Ledger has confirmed a shocking security problem. The hardware wallet maker says an unauthorized implant was found inside at least one device linked to recent crypto fund losses. The news spread fast on Monday and worried traders who keep their coins in cold wallets for safety.
All confirmed cases so far involve wallets sold through CryptoBilis, a reseller in Southeast Asia covering Indonesia, Malaysia and the Philippines. On-chain researchers estimate that more than $86 million, possibly up to about $93 million, was taken from over 300 wallets across Bitcoin, Ethereum and Tron. Ledger itself has not confirmed that total loss figure.
CryptoBilis has now stopped sales of all its hardware wallet stock until the investigation ends. Ledger says its own systems, services and direct sales channels were not compromised, and that the number of affected devices appears limited. The company is contacting affected users directly and says the probe that began on October 9 is still ongoing.
Ledger's advice is clear. If you bought a device from this reseller and have not set it up yet, do not start it. If you already set one up, move your coins to a new device with a fresh recovery phrase, bought directly from Ledger. And never share your recovery phrase or PIN with anyone — no real support team will ever ask for it.
For traders, this is a trust shock at a nervous time for the market. Self-custody is supposed to be the safest way to hold crypto, so a physical tampering case can hurt confidence and add fear, even though no cases outside this one reseller have been confirmed so far. Traders will now watch closely for any wider findings.
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This post is news only, not financial advice. Always do your own research before buying or selling crypto.
Sources: CoinDesk, Cointelegraph, The Hacker News