Ledger announced that it is investigating reports of losses linked to its hardware wallet devices purchased through a distributor in Southeast Asia, confirming that one affected device contained an unauthorized hardware implant.

The company said in a post on X on Saturday that it is contacting users as part of its ongoing investigation into the incident, which researcher Specter estimated could exceed $86 million across Bitcoin, Ethereum, and Tron.

Ledger asked anyone with relevant information about the investigation to contact its bounty program by email at: bounty@ledger.fr.

As a precautionary measure, CryptoBilis, the distributor in question, confirmed that it had suspended sales of all hardware wallet inventory until the investigation is complete. Ledger also said it is actively in contact with CryptoBilis regarding next steps.

According to Ledger, the incident appears to be limited to a single distributor and its market in Southeast Asia. The company has not yet confirmed how many customers may be affected or the final value of the reported losses.

The company also stressed that its infrastructure, systems, and services had not been compromised, confirming that the investigation is ongoing.

As for practical steps, Ledger advised users who bought their devices from this distributor not to begin setup if they have not already done so. Those who have already set up their devices are advised to consider transferring their assets to a new Ledger signer, including by using a new seed.

Ledger also urged any users who need assistance or have questions to contact customer support through official channels only.

These developments come as investigations focus on determining the actual scope of the impact and whether the issue is confined to the supply chain associated with the distributor in question.

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