Ledger Finds Unauthorized Implant in CryptoBilis-Sold Device

Ledger said at least one hardware wallet linked to cryptocurrency losses contained an unauthorized hardware implant, raising supply-chain concerns for customers who buy devices through resellers.

The confirmed cases disclosed by Ledger involve devices sold through Southeast Asian reseller CryptoBilis. Ledger said Oct. 11 that the number of affected devices appears limited and that its internal security infrastructure, systems and services remain unaffected.

CryptoBilis has suspended sales of its entire hardware-wallet inventory while the investigation continues. Ledger advised customers not to initialize unused devices. Customers who already initialized an affected device should transfer their assets to a new Ledger device using a new recovery seed.

Ledger’s Genuine Check verifies a device’s Secure Element, the chip that protects sensitive wallet functions, but it does not detect every unauthorized physical modification when the original chip remains intact. Ledger recommends buying devices directly from the company or authorized resellers.

The total number of affected devices, victims and losses has not been confirmed by Ledger. The method used to install the implant and how the devices entered the distribution chain also remain unconfirmed.