Ledger Investigates Southeast Asia Theft Linked to CryptoBilis Devices

Ledger is investigating a reported theft of crypto assets affecting Southeast Asian users who obtained hardware wallets through distributor CryptoBilis, with estimated losses exceeding $86 million across three blockchain networks.

Ledger has asked CryptoBilis to suspend sales and shipments. Customers who purchased devices through the distributor during the past 90 days have been advised not to initialize them.

Users who already completed setup have been told to create a new recovery phrase on a new Ledger signing device and transfer their assets to a new wallet. A recovery phrase is the group of words used to restore access to a crypto wallet.

Specter, a blockchain investigator, estimated that hundreds of wallets on the Bitcoin, Ethereum and Tron networks were affected. Security researcher tanuki42 previously estimated losses above $72 million and said the total was still increasing.

The cause of the incident and whether the devices contain a security vulnerability remain under investigation.