Ledger Investigates Potential $86M Theft Linked to Southeast Asia Reseller

Ledger is probing reports that funds were stolen from hardware wallets purchased through a Southeast Asian reseller, prompting an ongoing inquiry into as much as $86 million in alleged losses. The claims were publicized by a blockchain investigator on X after multiple users reported missing assets on social platforms.

While the figure and scope remain unverified, the incident has raised alarm because it involves devices sold by a third-party vendor rather than an apparent compromise of Ledger’s own infrastructure. The company has not attributed the losses to any specific cause.

Actions Taken and Customer Guidance

Ledger publicly acknowledged the complaints and said it has asked the reseller, CryptoBilis, to halt all sales and shipments while the investigation continues. Customers who bought devices from CryptoBilis within the last 90 days are advised not to initialize them. Those who already activated their devices should consider migrating assets to a new Ledger unit created with a freshly generated recovery phrase.

Tracing and Uncertainties

A pseudonymous investigator known as Specter reported tracing suspicious transfers across Bitcoin, Ethereum and Tron addresses after analyzing user reports on X and Reddit. However, the provenance, connection between incidents, and the exact amount affected have not been independently verified.

Possible explanations include a supply-chain attack — for example, if devices were tampered with or shipped with pre-generated recovery phrases that attackers already control. Ledger, though, has not confirmed device tampering or any specific attack vector.

Context Within Broader Crypto Security Issues

The potential loss comes amid a year marked by several high-profile security breaches in the crypto space, including large exploits affecting exchanges and platforms. These events emphasize the risks tied to custodial and non-custodial storage, and why hardware-wallet security is closely watched by the market.

Ledger, founded in 2014 and based in Paris, reports having sold millions of devices worldwide. Any security concern related to wallets in widespread use can have broader implications, even if incidents stem from third-party resellers rather than the vendor’s core technology.

Ongoing Investigation

The matter remains under investigation; Ledger says it will share updates as new information emerges. At present, there is no conclusive public evidence linking the reported losses to a compromise of Ledger’s systems.

UPDATE (Oct. 9, 14:58 UTC): Adds further context about Ledger.