Ledger published an official announcement following user reports regarding missing assets and altered hardware, labeling the incident among the most advanced security breaches the cryptocurrency sector has ever encountered.
The hardware maker announced on Thursday that an extremely structured syndicate of criminals purchased Ledger units and integrated physical implants capable of capturing user seed phrases before returning the modified products into the commercial supply chain through retail channels.
The Paris-headquartered manufacturer stated last week that it had launched an inquiry after consumers located in Southeast Asia reported stolen assets tied to purchases from CryptoBilis, a reseller based in Malaysia.
The firm subsequently confirmed that hardware belonging to one of the affected clients featured an unauthorized physical modification.
Although the exact total of stolen capital from the compromised units remains unverified, blockchain analyst Specter estimated total losses at $86 million, and Ledger did not provide answers to written inquiries from Bitcoin Magazine.
According to a statement released by Ledger on Thursday, the criminal organization constructed dedicated logistical and technological frameworks, including seed-harvesting servers alongside asset-draining and money-laundering systems, demonstrating immense patience and millions in investment before executing a synchronized strike to empty the wallets.
Ledger further clarified that no vulnerabilities existed within its microcontrollers, operating software, or backend servers, noting that company networks remained secure and that the breach targeted the distribution network strictly after the hardware left official custody.
Describing the event as its most extensive investigation to date, the enterprise dispatched personnel to international regions, including Europe, to verify that alternative supply chains had not been compromised.
The business confirmed that inspected hardware units proved secure, while authorized vendors and merchant partners throughout Southeast Asia and Hong Kong voluntarily halted retail operations.
Additionally, Ledger stated it is collaborating directly with police authorities to track the stolen capital and neutralize the criminal network’s technical infrastructure.
The organization’s public announcement did not specify the exact quantity of individuals impacted.
The digital asset sector continues to process the fallout from a July incident where malicious actors managed to siphon nearly $120 million worth of bitcoin from users of Coldcard devices.
Furthermore, multiple data leaks have occurred throughout the year, with fraudsters specifically targeting Ledger via its third-party payment vendor Global-e in order to acquire private user details.
Originally published at https://bitcoinmagazine.com/news/ledger-says-crime-group-spent-millions.
