Ledger Suspends Reseller as Drain Reports Surface @Ledger has confirmed it is investigating reports that customers in Southeast Asia had funds drained from hardware wallets purchased through
@Ledger has confirmed it is investigating reports that customers in Southeast Asia had funds drained from hardware wallets purchased through regional reseller CryptoBillis. As a precaution, Ledger Support said it had asked CryptoBillis to pause all Ledger device sales and shipments while the investigation continues.
The Malaysian shop, founded in 2020, sells crypto merchandise and Ledger devices, and also operates in Indonesia and the Philippines.Customers who purchased devices through the distributor during the past 90 days have been advised not to initialize them.Users who already completed setup have been told to create a new recovery phrase on a new Ledger signing device and transfer their assets to a new wallet.
On-chain investigator Specter estimated that more than $86 million in crypto assets was drained across 98 wallet addresses, although the total losses and the cause of the incidents have not been independently confirmed.Security researcher tanuki42 previously estimated the losses at over $72 million, noting that the figure continues to rise.
According to Specter's analysis, the theft spans three major networks: $ETH, $TRX, and $BTC. The analyst traced several theft addresses that received inflows from hundreds of victim wallets, pointing toward a coordinated campaign rather than a handful of unlucky individuals.On-chain data shows that three BTC theft addresses received more than 211 BTC between October 8 and 9, which had not yet been moved.
According to information currently available, the incident appears limited to the supply chain, involving a supplier, with some users potentially having purchased counterfeit or tampered Ledger devices. However, the cause of the incident and whether the devices contain a security vulnerability remain under investigation. Ledger has not confirmed any vulnerabilities in its devices or software.
Some reports suggest the final figure could approach $100 million once more victims are identified, though that figure remains unverified. Users who purchased a Ledger device from CryptoBillis are urged to follow Ledger's guidance immediately and monitor official channels for updates.
Sources:BeInCrypto: Ledger Pauses Reseller Sales After $86 Million Drain ClaimsTokenPost: Ledger Investigates Southeast Asia Theft Linked to CryptoBilis DevicesThe Defiant: Ledger Asks CryptoBilis to Halt Sales Amid Reports of Lost Funds
