Hardware wallet manufacturer Ledger declared on October 11 that the recent cryptocurrency thefts reported on October 9 were limited to devices purchased through its authorized Southeast Asian distributor, CryptoBilis. While Ledger noted the affected devices were limited in number, it did not disclose the exact figures of compromised wallets.
Inquiry Focuses on Distributors
Ledger emphasized that the incident did not impact its direct sales or internal systems. The company stated it is collaborating with relevant authorities to ascertain how these thefts transpired and is reaching out directly to affected customers. Ledger, a French technology firm renowned for its secure hardware wallets used to store cryptocurrencies, maintains its reputation in safeguarding digital assets.
Ledger indicated the number of impacted devices is constrained, yet the precise extent of the issue remains undisclosed.
Initial findings suggest the investigation is concentrating on the supply chain segment. Previously, an unauthorized hardware component was discovered within one of the risky customer devices, raising concerns that some wallets may have been physically altered before reaching customers.
$86 Million Loss Estimate Under Scrutiny
Blockchain researchers estimate the total financial loss could exceed $86 million, although this figure remains unverified officially. Investigating teams are also working to determine if the reported thefts are linked to a singular method of tampering.
Ledger affirmed that its infrastructure was not the source of the incident and that its direct sales channel remained unaffected.
The investigation is keen to discern whether the physical tampering represents an isolated event or is indicative of a broader distribution issue. The current probe aims to clarify if the losses reported by different users stem from identical hardware modifications.
Sales Halted, Security Measures Strengthened
Following the developments, CryptoBilis has announced the suspension of all hardware wallet sales until a new directive is issued. Ledger has reinforced the security of its supply chain, including authorized distributor systems, and implemented additional protective measures against physical tampering.
The company reminded its distribution partners to procure products exclusively from authorized sources and reiterated the advisement against reselling returned devices.
Ledger called for the consideration of this issue beyond its brand, urging other hardware wallet providers and security researchers worldwide to bolster measures against physical intervention attempts across the industry.
