Ledger Confirms Hardware Tampering in User Device as CryptoBilis Halts Sales

Ledger confirmed that an unauthorized hardware implant was found inside one affected user’s device, expanding a security investigation to the hardware level and prompting distributor CryptoBilis to halt sales of all hardware wallets.

Ledger is contacting the affected user and cooperating with law enforcement as the investigation continues. The company said it has found no indication that its own security infrastructure, systems or services were compromised.

CryptoBilis has suspended hardware-wallet sales until the investigation is complete. Ledger advised customers who bought devices through the distributor not to initialize products that have not yet been set up.

Customers who already initialized their devices should consider creating a new wallet with a new recovery phrase and transferring their assets, Ledger said. The company is also developing stronger hardware anti-tampering measures.

The incident raises concerns about supply-chain security for hardware wallets, which are physical devices designed to store private keys and approve cryptocurrency transactions.