Hardware wallet maker Ledger has announced it is currently looking into reported asset losses after customers located in Southeast Asia encountered problems with units acquired through a third-party vendor.
The Paris-based organization cautioned clients on Friday who acquired units from the seller CryptoBilis over the preceding 90 days to avoid initializing the hardware.
Ledger refrained from disclosing the exact total of stolen funds, yet an on-chain analyst known as Specter shared on X that he tracked illicit destination addresses following social media reports, indicating that over $86 million had vanished.
BREAKING: Ledger reports loss of funds from users in South East Asia who purchased products from the reseller “CryptoBillis”.
The situation is ongoing and users are urged to review Ledger’s official updates. pic.twitter.com/0GT3cthQtD
This event follows several digital asset data exposures throughout the year alongside a massive exploit impacting popular Coldcard hardware devices in July.
“Ledger is investigating reports of loss of funds from users in South East Asia who purchased products from a reseller named CryptoBilis,” Ledger stated via its official support channel on X.
Ledger further mentioned that it requested CryptoBilis to suspend all transactions and deliveries of Ledger hardware.
“If you have set up your Ledger device, consider moving assets to a new Ledger signer (with new seed). We will continue to inform customers of updates as the investigation progresses,” the business noted.
In an official statement shared with Bitcoin Magazine, Ledger emphasized that current evidence indicates the breach is confined strictly to this merchant within this distinct regional market.
“No reports were made of products purchased directly from Ledger, and Ledger’s infrastructure, systems and services were not compromised,” the corporation added.
CryptoBilis operates as a hardware wallet merchant headquartered in Kuala Lumpur, Malaysia, according to official web details. The vendor did not immediately reply to inquiries from Bitcoin Magazine.
The digital currency sector continues to recover after malicious actors in July managed to steal nearly $120 million worth of bitcoin from Coldcard customers.
Those devices, produced by the Canadian firm Coinkite, contained a software defect resulting in weak recovery seed creation, which enabled bad actors to effectively guess investor seed phrases.
Galaxy Research reported that during the months following the incident, various threat actors successfully exploited the flaw independently.
In a separate occurrence last month, hardware wallet manufacturer Trezor disclosed that roughly 81,000 users suffered data exposure after its external fulfillment vendor experienced a security breach.
Malicious actors have heavily targeted user information this year, with scammers obtaining private details via Ledger’s third-party payment vendor Global-e in order to dispatch deceptive phishing messages.
Originally published at https://bitcoinmagazine.com/news/ledger-warns-users-after-losses-reported.
