Ledger Investigates Hardware Hack After Over $90 Million in Crypto Stolen

Cryptocurrency hardware wallet maker Ledger is investigating a sophisticated physical attack on its devices that has resulted in estimated losses exceeding $90 million. The Paris-based company stated that an organized criminal group installed hidden surveillance components inside some of its wallets before they were sold to customers.

Supply-Chain Breach Under Investigation

The probe began after customers of CryptoBilis, a Malaysian cryptocurrency retailer, started reporting missing funds on October 9. According to blockchain researchers cited in the report, the total value of stolen digital assets is now estimated to be more than $90 million.

In response, CryptoBilis has temporarily closed its physical stores in Kuala Lumpur. Ledger confirmed it is working with local law enforcement on the matter, while the retailer has not yet issued a public comment.

Nature of the Hardware Compromise

Independent security researchers suggest the attackers physically altered the devices to bypass their core security features. The modifications reportedly include:

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• The installation of components capable of intercepting sensitive information, such as data sent to the wallet's screen.
• The addition of cellular chips and SIM cards to transmit the captured data to the attackers remotely.

This method allows criminals to gain access to a user's cryptocurrency holdings without directly breaking the device's primary security chip, highlighting a significant vulnerability in the product supply chain.

Broader Industry Implications

The incident raises serious concerns about the security of distribution channels for crypto hardware. The investigation has uncovered evidence that the attack may not be isolated to one retailer, as a compromised device was also reportedly identified after being purchased at Singapore's Changi Airport.

This hardware-level breach follows other recent security events in the sector, including a software vulnerability that led to significant Bitcoin losses from Coinkite devices and a data breach at a shipping provider used by Trezor. Ledger has not yet determined the full extent of the attack or the total number of devices affected.