Ledger Investigates Unprecedented Hardware Attack as Crypto Losses Top 90M USD
Ledger investigates an unprecedented hardware supply chain attack involving modified cryptocurrency wallets with embedded spying chips, causing over 90 million dollars in losses.
Cryptocurrency hardware wallet manufacturer Ledger is investigating an unprecedented cyber and hardware attack in which its devices were physically altered to embed covert tracking and spying components, with victim losses already crossing the 90 million dollar threshold.
At the center of the investigation is Malaysian crypto retailer CryptoBilis, after its customers began reporting disappearing funds starting October 9. Blockchain investigators estimate the value of digital assets stolen so far at over 90 million dollars.
Investigation Findings and Global Scope
The French manufacturer, based in Paris, stated that an organized crime syndicate installed hidden hardware inside some of its wallets. Simultaneously, the company is checking reports of infected devices purchased in other locations, raising serious concerns that the attack's scope is much broader and not limited to CryptoBilis.
Following the incident, CryptoBilis temporarily closed its physical stores in Kuala Lumpur. Ledger clarified that it is cooperating with local law enforcement authorities, while the Malaysian retailer has not yet issued an official response.
Sophisticated Hardware Interception
Independent security researchers explain that the engineered devices contained components capable of intercepting sensitive information displayed on the wallet screen and transmitting it to attackers via a dedicated cellular connection. This sophisticated modification allowed criminals to gain direct access to victims' funds without directly breaching the device's main security chip.
The affair reignites heavy concerns surrounding supply chain security in crypto storage, especially when products pass through third-party distributors or refurbished equipment sales channels.
Ledger's current investigation joins a series of severe security lapses recently recorded at competing manufacturers: earlier this year, a software vulnerability in Coinkite devices caused bitcoin losses totaling about 130 million dollars, while a breach at a delivery service provider for Trezor exposed the personal details of about 67,000 customers.
As part of the investigation, evidence of infected devices was discovered beyond Malaysia's borders: an inspection of a Ledger Flex wallet purchased at Changi Airport in Singapore revealed a custom screen connector, a cellular chip, and a SIM card embedded inside the device.
The findings raise pointed questions regarding how booby-trapped devices managed to penetrate official retail distribution networks and the number of customers still exposed to danger. At this stage, Ledger has not yet determined the full extent of the attack or stated how many devices were affected in total.
