Ledger is shifting its investigation toward the reseller channel after reports that users in Southeast Asia lost crypto from hardware wallets bought through CryptoBilis. The company has paused sales through CryptoBilis and is telling customers not to set up devices bought through that channel while its inquiry continues.
The key point is that Ledger says there is no indication its own systems, infrastructure, or services were compromised. Instead, the concern appears isolated, so far, to that reseller channel and market rather than to wallets sold directly by Ledger. That matters because a hardware wallet can be exposed during distribution if a device is tampered with, swapped, or packaged with a recovery phrase already known to an attacker, even if the device’s core cryptography remains intact.
On-chain investigator Specter has estimated losses could exceed $86 million across Bitcoin, Ethereum, and Tron, though that figure has not been independently confirmed. Ledger’s guidance is clear: if you bought a wallet from CryptoBilis and have not set it up, do not initialize it. If you already did, move your assets to a new device using a fresh recovery phrase. What remains unclear is the exact nature of the reseller-channel issue.