• Ledger confirmed that a device tied to recent cryptocurrency thefts contained an unauthorized hardware implant, with all known cases involving wallets sold by the Southeast Asian reseller CryptoBilis.
• On-chain researchers estimate that $86 million to $93 million was stolen from more than 300 wallets, though Ledger said its internal systems and direct sales channels were not compromised.
• Ledger advised CryptoBilis customers not to initialize unused devices and told those with active wallets to move their funds to a new seed on a device obtained directly from Ledger.

Crypto wallet manufacturer Ledger has confirmed that a device linked to recent user fund losses contained an unauthorized hardware implant. According to the company, all confirmed cases identified so far involve products distributed through the Southeast Asian reseller CryptoBilis.

In a statement released on Oct. 10, Ledger Support stated, “Ledger can confirm that one of the impacted users’ devices contained an unauthorized hardware implant.” The company added that it is actively contacting affected users as part of an ongoing investigation, and that CryptoBilis has suspended sales of all hardware wallet inventory until the investigation concludes.

In a follow-up update on Oct. 11, Ledger noted that the volume of impacted devices appears limited. “To date, all confirmed cases related to the disclosed draining incident of Oct 9th, 2026, involve devices sold through the Southeast Asia reseller CryptoBilis,” the company stated, adding that its internal systems and direct sales channels remain unaffected.

The confirmation of a physical implant marks the first concrete evidence supporting earlier speculation of supply-chain tampering.

The incident first came to light on Friday, when Ledger acknowledged investigating reports of missing funds from customers who purchased devices through CryptoBilis, which operates in Indonesia, Malaysia, and the Philippines.

While Ledger has not confirmed an official loss, third-party on-chain researchers have estimated the loss at between $86 million and $93 million from more than 300 wallets across multiple blockchains, including Bitcoin, Ethereum, and Tron. The company reiterated that it there is no indicattion that its own internal security infrastructure, systems, or services were compromised.

Ledger stated it is cooperating with relevant authorities on Sunday. The company also reminded its network of distributors to source products exclusively through authorized channels and strictly prohibited the restocking of returned products.

The company repeated its earlier security guidance to pcustomers who purchased devices via CryptoBilis: “Do not initialize unused devices. If already set up, move to a new seed on a device from Ledger.” The company urged affected users to contact official Ledger Support and file complaints with local law enforcement.

Ledger also warned that scammers often attempt to exploit incidents of this type, reminding users that the company will never call, DM, or ask for their 24-word recovery phrase.

When will wallets be SAFU?

The Ledger incident has again raised broader industry questions regarding hardware wallet safety. Following the 2022 collapse of the FTX exchange, millions of investors migrated their assets into self-custody, relying heavily on physical hardware wallets made by firms like Ledger and Coinkite (makers of Coldcard) to keep private keys entirely offline.

In practice, however, physical storage has not been immune to vulnerabilities.

In July 2026, a flaw in Coldcard’s seed-generation firmware allowed attackers to drain an estimated $100 million to $130 million in bitcoin, according to data from on-chain researchers.

In this current exploit, Ledger maintains that the physical tampering is strictly isolated to the batch distributed by CryptoBilis and it is taking necessary steps to avoid such risks.

“Security isn’t static and this incident underscores why we continuously review and strengthen our distribution and anti-tamper processes,” Ledger said in its Oct. 11 post.

It added that it is reviewing authorized reseller controls, advancing hardware protections, and calling for broader industry improvements in chain-of-custody practices.

Still, speculation regarding how the supply chain was breached continues to circulate.

In a post on X, Binance co-founder Changpeng Zhao (CZ) alleged that the attackers “apparently bought the reseller and made them sign a non-disclosure agreement to keep their mouth shut.”

These claims have not been independently verified. CryptoBilis did not immediately respond to requests for comment regarding the incident or Zhao's specific allegations.