Ledger Investigates CryptoBilis Wallet Security Incident
Ledger has temporarily suspended product sales through CryptoBilis after reports linked devices sold by the reseller to cryptocurrency losses in Southeast Asia.
The investigation intensified after Ledger confirmed that one affected hardware wallet contained an unauthorized hardware implant. Blockchain investigator Specter has claimed that the incident may be connected to losses exceeding $86 million, although the full scope of the incident remains under investigation.
Ledger advised customers who purchased devices from CryptoBilis within the past 90 days not to begin setup if they have not already done so. Customers who have activated their devices were encouraged to move their assets to a new Ledger signer using a newly generated recovery seed.
CryptoBilis Suspends Hardware Wallet Sales
CryptoBilis has paused sales of its hardware wallet inventory while the investigation continues. The reseller warned customers that a recovery phrase must always be generated by the device during setup and written down by the user.
A device should be treated as unsafe if it arrives with a recovery phrase already printed or written on a card, or if another person has seen the phrase. Users should also never share their recovery phrase or PIN with Ledger, CryptoBilis, or anyone claiming to offer fund recovery services.
In an update dated October 11, 2026, Ledger said the confirmed cases involved devices sold through CryptoBilis and affected a limited number of devices.
Ledger Warns Against Unauthorized Resellers
Ledger has also urged distributors to source products only through authorized channels and avoid restocking returned products. The company warned that devices purchased from unauthorized sellers could be counterfeit, modified, or otherwise outside Ledger’s security procedures.
Crypto users should purchase hardware wallets directly from the manufacturer or an officially authorized retailer. Before using a device, customers should inspect the packaging, verify the setup process, and ensure the recovery phrase is generated on the device itself.
The investigation remains ongoing, and users should monitor official Ledger updates for further information.
Source: The Hacker News
Disclaimer: This article is for informational purposes only. BuzzToday24 does not provide cryptocurrency investment or security advice.
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