Ledger has confirmed that all verified cases in the recent wallet-draining incident involve devices sold by the Southeast Asian reseller CryptoBilis. The hardware wallet manufacturer stated that its own systems and direct sales channels remain unaffected by the breach, while noting that the total volume of impacted devices is limited.
CryptoBilis has ceased all sales of hardware wallets as Ledger works with relevant authorities and reaches out to affected users. The company advised buyers who purchased from this reseller to move their funds to a new seed phrase on devices obtained through authorized channels, warning against the risks of buying from unauthorized sellers where modified or counterfeit devices may be distributed.
Key facts
- Ledger confirmed that every verified case in the suspected drain involves devices sold by reseller CryptoBilis.
- Onchain investigators have traced more than $86 million in suspected thefts across Ethereum, Tron, and Bitcoin.
- CryptoBilis has stopped selling hardware wallets following the emergence of the incident.
- Ledger urged buyers to avoid unauthorized sellers and never to restock returned products.
- The company advised affected users to transfer funds to new seed phrases on devices from authorized sources.
- Ledger stated that its internal systems and direct sales operations were not compromised.
Why it matters
The incident highlights the security risks associated with purchasing hardware wallets from unauthorized third-party resellers, as tampered or modified devices can lead to significant financial loss for users who trust the supply chain.