- Ledger asked Southeast Asian reseller CryptoBilis to suspend hardware wallet sales and shipments while it investigates reports of stolen customer funds.
- On-chain investigator Specter estimated potential losses exceeding $86 million across hundreds of wallets, although Ledger has not confirmed the figure.
- Ledger advised customers who purchased devices from CryptoBilis within the past 90 days not to set them up and urged existing users to move their funds to a new device with a new recovery phrase.
Ledger has asked a Southeast Asian reseller to temporarily halt sales of its hardware wallets following reports that customers may have lost millions of dollars in cryptocurrency.
The company identified the reseller as CryptoBilis, a Malaysian business that also operates in Indonesia and the Philippines.
The precautionary move came shortly after on-chain investigator Specter reported suspected losses exceeding $86 million across hundreds of cryptocurrency wallets.
Ledger has not confirmed the reported losses or established whether any hardware wallets were tampered with.
Ledger Warns CryptoBilis Customers
Ledger Support issued a warning to customers who purchased hardware wallets from CryptoBilis during the past 90 days.
The company advised buyers who have not yet activated their devices to avoid setting them up until further information becomes available.
Customers who have already used the devices were instructed to transfer their cryptocurrency to a new hardware wallet secured with a new recovery phrase.
“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.
The warning specifically concerns recent purchases from CryptoBilis and does not establish a broader security issue affecting all Ledger devices.
Investigator Reports More Than $86 Million in Losses
The reported loss figure comes from Specter, an on-chain investigator who analyzed cryptocurrency movements across Ethereum, TRON and Bitcoin.
According to Specter, funds associated with hundreds of suspected victim wallets were traced across the three networks.
Public Bitcoin blockchain records reportedly showed approximately 211 BTC held across three addresses identified by the investigator.
Those funds had not moved as of 13:44 UTC on Friday.
However, Ledger has not independently verified the $86 million estimate or explained how the reported funds may have been compromised.
The investigation also has not established whether the suspected losses are directly connected to devices sold by CryptoBilis.
Hardware Wallet Security Concerns Continue
The investigation follows other reported security incidents involving cryptocurrency hardware wallets.
In April, a researcher identified counterfeit Ledger devices sold through a Chinese marketplace that allegedly transmitted users’ PINs and recovery phrases to attackers.
Separately, an August firmware-related incident involving rival hardware wallet manufacturer Coldcard reportedly resulted in approximately $70 million in Bitcoin losses.
These incidents highlight the potential risks associated with compromised devices, counterfeit products and vulnerabilities affecting wallet security.
For now, Ledger’s warning remains limited to recent CryptoBilis customers.
The company said it will provide further updates as its investigation progresses. Whether any devices were altered before reaching customers remains unconfirmed.
