Ledger Confirms Hardware Implant in Wallets Sold Through Reseller CryptoBilis

Ledger has confirmed that a number of its hardware wallets were tampered with through a physical implant that allowed attackers to drain users' cryptocurrency holdings, according to BleepingComputer. The company said the affected devices were distributed by CryptoBilis, a reseller operating in Southeast Asia.

According to Decrypt, Ledger stated that every confirmed case has been linked to devices sold through that reseller, and that its own internal systems and direct sales channels were not affected. The manufacturer added that CryptoBilis has stopped selling hardware wallets.

CoinDesk reported that Ledger described the confirmed cases as limited to the reseller's devices, while critics argued the company still bears responsibility for an authorized sales channel. CoinDesk also reported that up to $93 million has been traced and $10 million frozen in connection with the thefts. Decrypt put the suspected scale of the drain at around $87 million.