European Retailers Pull Ledger Wallets Amid Supply Chain Tampering Fears

European electronics retailers and online stores are removing Ledger hardware wallets from their shelves and sales sites following reports of unauthorized physical tampering with crypto devices. The decision was taken as a precautionary measure after a customer in Germany reported finding a suspicious component inside a device. According to Ledger, no loss of funds has been reported in this specific case.

The controversy began after Ledger confirmed that devices sold through Southeast Asian distributor CryptoBilis contained a hidden electronic component. According to the company security team, the component is capable of reading the wallet's 24 recovery words during device setup and transmitting them via a cellular network. Anyone who obtains these words can gain control over the victim's digital assets.

Blockchain researchers estimated that the volume of thefts associated with the compromised devices could exceed 86 million dollars, though Ledger emphasized that the exact amount and number of affected users have not yet been fully verified. The company stated it has no evidence that its systems or services were breached and asked CryptoBilis to halt sales and shipments. Meanwhile, reports of suspicious devices purchased in Europe remain unverified.

This incident highlights that even a hardware wallet, a physical device designed to protect access keys and considered the safest solution in crypto, is not immune to supply chain interference. Ledger instructed customers who purchased a device through CryptoBilis and have not yet activated it not to set it up and to contact support. Those who suspect their device was compromised are advised not to re-enter their recovery words, never share them, and follow the company's official security guidelines.