Ledger Suspends Reseller Shipments Amid Multichain Crypto Theft Investigation

Ledger is investigating reports of cryptocurrency losses involving customers in Southeast Asia who purchased hardware wallets through reseller CryptoBilis. The company has asked the reseller to suspend sales and shipments while investigators examine the incidents. An onchain investigator estimates that suspected thefts across Bitcoin, Ethereum, and Tron exceed $86 million, although the total remains unconfirmed.

The incident has raised concerns about hardware wallet security and the risks associated with compromised devices. Ledger has not confirmed how the reported losses occurred, how many customers were affected, or whether the reseller’s products were tampered with before reaching buyers.

Customers who purchased devices through CryptoBilis within the past 90 days face particular uncertainty as the investigation continues.

Ledger Issues Urgent Warning to Recent Buyers

Ledger announced its precautionary measures on October 9, asking CryptoBilis to pause all sales and shipments until the company completes its investigation.

The company also advised recent buyers who have not activated their devices to postpone setup. Customers who have already configured their wallets should consider transferring their cryptocurrency to a new Ledger signer using a newly generated recovery phrase.

A recovery phrase is a sequence of words that restores access to a cryptocurrency wallet. Anyone who obtains this phrase may gain access to the funds it controls.

The guidance aims to reduce potential exposure while investigators determine whether the reported incidents share a common cause. However, Ledger has not established a direct link between every reported loss and a device purchased from CryptoBilis.

Onchain Investigators Trace Millions in Suspected Losses

Blockchain investigator Specter estimated that more than $86 million in cryptocurrency may have been stolen from wallets across Bitcoin, Ethereum, and Tron. The investigator traced transactions involving suspected theft addresses after reports of missing funds circulated online.

Another investigator, operating under the name tanuki42, previously estimated losses exceeding $72 million. However, researchers have not independently confirmed the aggregate amount or established whether the estimates cover the same transactions.

A potential supply-chain attack has emerged as one possible explanation. Such an attack could involve devices being altered before reaching customers, potentially exposing their owners to unauthorized access. Nevertheless, investigators have not confirmed that hardware tampering occurred.

The case highlights the security challenges facing the cryptocurrency industry, where individual users often bear responsibility for protecting their assets. Hardware wallets generally keep private keys offline, but that protection depends on secure device initialization and safeguarding recovery phrases.

For now, Ledger’s investigation remains ongoing. The company has not confirmed the total financial losses or identified the mechanism behind the reported thefts. The findings could have wider implications for hardware wallet distribution and customer trust in cryptocurrency self-custody.