Crypto wallet producer Ledger has launched an investigation following reports that some users who purchased devices from an authorized distributor in Southeast Asia had their crypto assets stolen. The Paris-based company is scrutinizing notifications linked to customers who obtained Ledger devices through Malaysia’s CryptoBilis.
Sales Halted and Urgent Advisory Issued to Users
As a precaution, Ledger has requested that CryptoBilis suspend all sales and shipments until the investigation is completed. The company also advised customers who purchased from this distributor within the last 90 days but have not yet set up their wallets to refrain from initiating setup until further notice.
For those who have already activated their devices, Ledger recommended transferring their crypto assets to a new Ledger hardware wallet and setting up a new recovery phrase. The specifics of how the alleged theft occurred remain unclear, and it has not been confirmed whether any hardware was tampered with.
Ledger urged users who purchased devices from the concerned distributor in the past 90 days and have yet to set them up not to activate their wallets.
Supply Chain Attack Speculation Arises
Binance co-founder Changpeng Zhao speculated that the incident may represent a supply chain attack, suggesting that counterfeit or physically altered hardware wallets could be the source of the alleged theft. Zhao, a prominent figure in the cryptocurrency space, emphasized the potential link to physical tampering.
Zhao noted that, based on available information, the issue seems localized to a single seller, and the number of affected devices may be relatively low. He underscored Ledger’s reputation as one of the oldest and most security-oriented hardware wallet manufacturers in the crypto ecosystem.
Changpeng Zhao advised caution for users who recently acquired Ledger hardware wallets, noting that initial findings point to a solitary distributor.
Uncertainty Surrounds Extent of Potential Losses
Former Mt. Gox CEO Mark Karpeles also entered the discussion, reiterating a claim about a tampered Ledger device allegedly sent to him from Malaysia. However, there is no verified information establishing a direct link between his claim and the ongoing investigation.
Blockchain researcher Specter estimated potential losses could exceed $86 million, suggesting that hundreds of wallets across Bitcoin, Ethereum, and Tron networks might be implicated. Nevertheless, Ledger has not corroborated this figure and states that the affiliation of all cases with the same distributor remains unconfirmed.
The company has committed to keeping the community informed as the investigation progresses, urging potentially affected users to contact official support channels. The scope of the investigation, the number of impacted users, and the ultimate scale of the loss remain indeterminate at this stage.
