Ledger Asks Retailers to Pause Sales in Southeast Asia and Hong Kong

Ledger asked authorized resellers and distributors to suspend sales in Southeast Asia and Hong Kong as it investigates a scheme the company says involved modified wallets that captured recovery phrases during setup.

New rules took effect immediately. Retailers must keep products off shelves and displays, store them away from customers, and hand them over only when a purchase is made. Retailers must keep returned wallets out of resale, including units that look unopened, and quickly report any complaints about unusual products.

Ledger said attackers spent months buying genuine devices, adding hidden components designed to capture recovery phrases, then returning the wallets to distribution through Southeast Asian resellers.

Ledger’s security team examined store-bought devices, including units bought in Germany, and samples from warehouses. No implants were found in the devices examined, but Ledger did not disclose how many it checked. The company said its chip, operating system and servers were not compromised, characterizing the incident as confined to distribution.