Ledger Confirms Unauthorized Hardware Was Planted in Wallet; Retailer Halts Sales!

Ledger confirmed that unauthorized hardware was planted inside a device affected by the security incident, while distributor CryptoBilis suspended hardware wallet sales.

A company statement reported by Wu Blockchain revealed a new finding confirming physical tampering in the incident involving Ledger wallets. An unauthorized hardware component that had been installed later was detected inside the device under investigation.

Ledger said it had found no evidence that its infrastructure, systems, or services had been compromised. The company’s reported finding therefore focused on the physical alteration of the affected device.

Setup warning for affected users

The company recommended that affected users not activate devices that have not yet been used—that is, not complete their initial setup. It also advised them to consider moving their assets to wallets created with new recovery phrases.

This warning was shared for users and devices affected by the incident. CryptoBilis, the hardware wallet distributor, halted device sales following the developments.

Estimated losses exceed $86 million

Earlier on-chain analyses estimated that losses linked to the incident exceeded $86 million. That figure is based on earlier analyses, while the new development in Ledger’s latest statement was confirmation that unauthorized hardware had been found inside a device.