Ledger Halts S-E Asia Sales Amid Tampered Devices Discovery

Overview

Ledger, a Paris-based cryptocurrency hardware wallet maker, has suspended sales in South-east Asia after discovering that some of its devices were tampered with to steal users' funds.

Background

Following an October 9 incident in which wallet owners reported stolen cryptocurrency, Ledger announced on October 13 that it is also asking regional resellers and distributors to pull the hardware wallets from their shelves.

Investigation

The manufacturer is currently investigating devices sold by Malaysian reseller CryptoBilis, which were found to contain malicious implants.

Implications

These implants can read information on the wallet's screen, and when users key in a 24-word recovery phrase to access their cryptocurrencies, the information is relayed to a third party.

Losses

The losses are estimated at more than US$86 million (S$110 million), although Ledger said it has not been able to confirm the number of people affected or the total amount lost.

Sales Suspension

The sales suspension currently applies to Singapore, Malaysia, Indonesia, Thailand, the Philippines, Vietnam, and Hong Kong.

Response

In Singapore, a tampered device was found to have been sold at Metapod in Changi Airport.

Reactions

European electronics retailer MediaMarktSaturn has also pulled Ledger's products from its shelves across the 11 markets where it operates, after a customer in Germany reported an implant in a device.

Investigation

According to Ledger's website, its products are manufactured and assembled in France, Hungary, and Vietnam, before being shipped to retailers and customers from its warehouse in Vierzon, France, or its distribution centre in Memphis, Tennessee, in the US.