OneKey Ends CryptoBilis Deal After Ledger Wallet Theft Reports

OneKey has revoked Malaysian retailer CryptoBilis’ distribution authorization after funds were stolen from some Ledger wallets sold through the channel, widening concerns over hardware-wallet supply chains.

OneKey will provide free replacements for devices purchased through CryptoBilis from March 1 through Oct. 12. The company also said it has stopped accepting new distributors and has no reports of customer assets being affected.

Ledger is investigating the losses and confirmed that one affected user’s device contained an unauthorized hardware implant. CryptoBilis suspended sales and shipments of all hardware wallets in Malaysia, the Philippines and Indonesia on Oct. 10.

An estimate of losses as high as $103 million has not been confirmed by Ledger.