Ledger Says Organized Crime Group Spent Millions Targeting Hardware Wallet Users

According to Bitcoin Magazine, hardware wallet manufacturer Ledger has issued a statement regarding a sophisticated supply chain attack affecting digital asset users. Ledger stated that an organized criminal group purchased devices, installed hardware implants capable of reading user seed phrases, and returned the tampered devices to the supply chain via resellers.

The investigation began after customers in Southeast Asia reported lost funds following purchases from the Malaysia-based reseller CryptoBilis. Ledger confirmed that an impacted user's device contained an unauthorized hardware implant. While Ledger did not specify the total funds lost, blockchain investigator Specter reported that $86 million was drained.

Ledger emphasized that its chips, operating systems, and servers were not compromised, describing the incident as an attack on the distribution channel after products left company control. The Paris-based manufacturer stated that the criminals built dedicated logistics, technology infrastructure, and laundering systems for a coordinated operation. Ledger launched an investigation, dispatched employees to other markets to screen supply chains, suspended sales through authorized distributors in Southeast Asia and Hong Kong, and is currently working with law enforcement.