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The cryptocurrency market has once again faced a test of asset security. Ledger, a renowned hardware (cold) wallet manufacturer, confirmed that it is investigating reports from some users who have lost funds. Based on the information currently available, all affected devices were purchased from Malaysian reseller CryptoBilis. Blockchain analytics firm Arkham Intelligence estimates that losses from the incident have already exceeded $80 million. Although no incidents have been reported involving Ledger’s official direct infrastructure, the company has urgently asked the reseller to suspend sales and shipments of the devices in question. Even Binance founder CZ has reminded everyone to exercise caution.
Ledger Wallets Sold by Malaysian Distributor CryptoBilis Run Into Trouble
Ledger, the well-known hardware wallet manufacturer, issued a statement announcing that it is investigating multiple reports from users who lost funds in their wallets. Preliminary evidence suggests that all devices raising security concerns were sold by Malaysian distributor CryptoBilis. A Ledger spokesperson stressed that no products purchased through official infrastructure, systems, or direct sales channels have been affected. However, Ledger has declined to comment further on the incident, and distributor CryptoBilis has yet to respond directly. The exact cause of the incident remains unclear pending further investigation.
To prevent potential security risks from escalating, Ledger has formally asked CryptoBilis to suspend sales and shipments of all related hardware devices until the investigation is complete. The company has also issued specific advice to customers who purchased devices from the distributor in the past 90 days: if a device has not yet been used, do not set it up for now; if it has been activated and funded, consider transferring the assets to another secure cryptocurrency wallet. This precaution is intended to minimize potential losses.
Arkham: Losses Exceed $80 Million
The scale of the impact from this security incident is substantial and has attracted considerable market attention. According to an assessment by Emmett Gallic, an analyst at research firm Arkham Intelligence, total losses resulting from the incident are estimated to have exceeded $80 million. While the specific attack method and movement of the funds are still being tracked, such a significant outflow has sounded an alarm for digital asset investors accustomed to purchasing devices through third-party distribution networks, highlighting the importance of supply chain security management.
Binance founder CZ posted that, based on the information currently available, the incident appears to be linked to a supply chain attack involving a vendor. A small number of users may have purchased counterfeit or tampered-with Ledger wallets. As Ledger is one of the industry's most secure and longest-established hardware wallets, CZ urged anyone using a Ledger hardware wallet, especially one purchased recently, to exercise caution!
Frequent Hacker Attacks Put Cold Wallet Security to the Test
The incident involving devices sold by a Ledger distributor is just one of numerous attacks to hit the crypto industry in recent months. Several major security incidents have occurred recently, including a breach involving wallets hosted by Canadian company Coinkite Inc., which led to the theft of more than $100 million worth of Bitcoin. Cold wallets—offline storage that combines a physical device with a private key to prevent internet connectivity—have long been widely regarded as the safest haven. But the recent spate of attacks continues to test the limits of these security systems.
This article, “Are Cold Wallets No Longer Safe? Ledger Distribution Network Hit by Trouble, With Losses Exceeding $80 Million,” first appeared at .