Ledger has confirmed that a customer’s device purchased through Southeast Asian reseller CryptoBilis contained an unauthorized hardware implant, adding a new development to an investigation into reported cryptocurrency losses.
In an October 10 update, Ledger urged customers with unused devices from the reseller not to set them up. Those who have already activated their devices should consider transferring their funds to a new Ledger device with a fresh recovery phrase.
Ledger Investigates CryptoBilis Wallet Losses
The investigation follows reports of about $86 million in cryptocurrency losses involving devices sold through CryptoBilis. Ledger said its security systems, infrastructure and services showed no signs of compromise. CryptoBilis has suspended sales of its hardware wallet inventory during the investigation.
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Former Mt. Gox CEO Mark Karpelès previously shared images of a small component he found inside a Ledger device. Its function and any connection to the reported losses remain unconfirmed.
CZ Warns Users About Wallet Security
Binance founder Changpeng Zhao also urged users to exercise caution with newly purchased hardware wallets and newly downloaded software wallets. In an October 9 post on X, he warned about potential tampering and hacking risks.
Ledger reminded customers never to share their 24-word recovery phrases, including with anyone claiming to represent the company. The confirmed implant raises supply-chain security concerns, but investigators have not established whether it caused the reported losses.
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