$86 Million May Have Just Vanished From Hardware Wallets. The Weak Link Might Not Be the Wallet at All.
For years, the standard advice has been "don't leave your crypto on an exchange, buy a hardware wallet." This week shows where that advice can break.
On Friday, Ledger said it is investigating reports of lost funds from users in Southeast Asia who bought devices through a reseller called CryptoBilis, which sells in Indonesia, Malaysia, and the Philippines. Ledger asked the reseller to pause all sales and shipments.
Onchain investigator Specter estimates more than $86 million may have been drained from hundreds of wallets. Another researcher traced over $72 million to eight addresses. Arkham data shared by Specter puts the roughly $87 million at the flagged addresses at about $42 million in $ETH , $17.6 million in $BTC , and $16.5 million in $USDT .
What's confirmed and what isn't:
✅ Ledger is investigating and has halted that reseller's sales
❓ The loss amount hasn't been independently verified
❓ The cause hasn't been confirmed, including whether devices were tampered with or recovery phrases were pre-generated
✅ Ledger says it has no evidence its own systems or wallet technology were compromised
Ledger's guidance: if you bought from this reseller in the last 90 days and haven't set up your device, don't. If you already have, consider moving your funds to a new Ledger signer with a brand-new recovery phrase.
The bigger lesson applies to everyone: a hardware wallet protects you from hackers online, but it can't protect you from a device that was altered before it reached you.
🔒 Buy directly from the manufacturer
📦 Check for tampered packaging
📝 Never use a recovery phrase that came pre-written
Where do you buy your hardware wallet, and would you trust an authorized reseller after this? 👇
#Ledger #CryptoSecurity #BTC #CryptoNews #Zyverra
For years, the standard advice has been "don't leave your crypto on an exchange, buy a hardware wallet." This week shows where that advice can break.
On Friday, Ledger said it is investigating reports of lost funds from users in Southeast Asia who bought devices through a reseller called CryptoBilis, which sells in Indonesia, Malaysia, and the Philippines. Ledger asked the reseller to pause all sales and shipments.
Onchain investigator Specter estimates more than $86 million may have been drained from hundreds of wallets. Another researcher traced over $72 million to eight addresses. Arkham data shared by Specter puts the roughly $87 million at the flagged addresses at about $42 million in $ETH , $17.6 million in $BTC , and $16.5 million in $USDT .
What's confirmed and what isn't:
✅ Ledger is investigating and has halted that reseller's sales
❓ The loss amount hasn't been independently verified
❓ The cause hasn't been confirmed, including whether devices were tampered with or recovery phrases were pre-generated
✅ Ledger says it has no evidence its own systems or wallet technology were compromised
Ledger's guidance: if you bought from this reseller in the last 90 days and haven't set up your device, don't. If you already have, consider moving your funds to a new Ledger signer with a brand-new recovery phrase.
The bigger lesson applies to everyone: a hardware wallet protects you from hackers online, but it can't protect you from a device that was altered before it reached you.
🔒 Buy directly from the manufacturer
📦 Check for tampered packaging
📝 Never use a recovery phrase that came pre-written
Where do you buy your hardware wallet, and would you trust an authorized reseller after this? 👇
#Ledger #CryptoSecurity #BTC #CryptoNews #Zyverra