Ledger has asked a Southeast Asian reseller to halt sales of its hardware wallets while it investigates reports that buyers lost funds. The move came about an hour after an analyst put suspected Ledger losses above $86 million.
Ledger has not confirmed that figure or said whether any devices were tampered with. Its warning covers only recent buyers from one reseller in Southeast Asia.
What Ledger Told Buyers of CryptoBilis Devices
A hardware wallet is a small device that keeps the secret keys to a person’s crypto offline. Ledger is one of the best-known makers.
On Friday, Ledger Support named the seller as CryptoBilis. The Malaysian shop, founded in 2020, sells crypto merchandise and Ledger devices. It also operates in Indonesia and the Philippines.
Ledger told anyone who bought from the shop in the past 90 days not to set the device up. Buyers who already had were told to move funds to a new device with a new seed phrase. A seed phrase is the 24-word backup that controls a wallet.
“As a precaution, and pending the results of our investigation, we have asked CryptoBilis to pause all sales and shipments of Ledger devices,” Ledger Support stated.
Where the $86 Million Claim Comes From
The loss figure comes from Specter, an analyst who tracks public blockchain data. Specter said they traced funds from hundreds of victim wallets on Ethereum, TRON, and Bitcoin.
Public records on mempool show three Bitcoin addresses Specter listed hold about 211 BTC combined. None of it had moved as of 13:44 UTC on Friday.
Ledger has not endorsed the $86 million total. It also has not explained how funds left users’ wallets.
A Second Hardware Wallet Scare Since August
Tampered devices sold outside official stores are a known risk. In April, a researcher found fake Ledger units on a Chinese marketplace that sent PINs and seed phrases to attackers.
Separately, in August, a Coldcard firmware bug drain cost Bitcoin holders about $70 million. Coldcard is a rival hardware wallet.
Ledger said it will share updates as the investigation progresses. Whether the CryptoBilis devices were altered before reaching buyers remains unanswered.
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