Ledger Tightens Reseller Rules After $102 Million Wallet Theft

Ledger said its investigation found that hidden components in altered hardware wallets copied recovery phrases, prompting tighter reseller controls. The theft was estimated at $102 million across 324 wallets.

Ledger said the components copied the 24-word recovery phrase shown during setup and sent it over mobile networks using a built-in eSIM. The company said the wallet’s security chip and operating system remained intact.

The estimate covered wallets across six networks. The wallet count does not equal the number of customers because one owner can control multiple addresses. Ledger’s investigation traced the altered devices to genuine units modified before they entered reseller channels in Southeast Asia.

The updated rules require authorized dealers to keep new devices off public display and prohibit resale of returned wallets. Ledger’s inspections of devices from stores in Germany and warehouse inventory found no tampering in those samples.

Ledger advised CryptoBilis customers not to set up unused devices. Customers who had already used one should move their assets to a new wallet with a fresh recovery phrase.