Ledger Wallets Hit by Sophisticated Supply Chain Attack Draining Millions in Bitcoin
Key Summary
A sophisticated supply-chain attack on Ledger devices sold through CryptoBilis has drained over 60 BTC, worth $4.8 million, from a wallet tied to an alleged crypto scammer, with hundreds of wallets affected in a coordinated burst.
Attack on Ledger Devices
A wallet holder described in a post on X as a crypto scammer lost over 60 BTC, worth $4.8 million, after a Ledger hardware wallet was compromised. The loss was not a one-off. It sits inside a much larger supply-chain attack on Ledger devices sold through CryptoBilis, a Southeast Asian reseller.nnn
How the Attack Worked
Ledger confirmed it found an unauthorized hardware implant inside at least one affected device. The implant captured the 24-word seed phrase users wrote down during setup. It then sent those phrases out over cellular networks. A seed phrase is the master key to a wallet. Whoever holds it can rebuild the wallet anywhere and move every coin inside.nnn
The Numbers Keep Moving
Early loss estimates ranged from $72 million to $86 million. Those figures were later revised upward to between $93 million and $102 million across roughly 300-plus wallets. Analysts tracking the collector addresses saw inflows in Bitcoin, Ethereum, TRON and stablecoins. Over 324 wallets were involved, per the research findings.nnn
Tether Freezes $10 Million
Tether froze about $10 million in USDT linked to the exploited addresses.nnn
Ledger Points to the Reseller
Ledger said every verified case traced back to purchases from CryptoBilis. The company stated that its own systems and direct sales channels remained secure. CryptoBilis temporarily paused sales after the discovery.nnn
The Perpetrators
Ledger characterized the perpetrators as a highly organized criminal group. According to the company, the group spent considerable effort building the implants before launching a coordinated strike.nnn
The Attackers' Strategy
The attackers did not drain wallets the moment seed phrases came in. Instead, they appear to have waited while victims loaded funds, then struck many wallets almost simultaneously. This approach maximizes the haul and minimizes warning. If the group had emptied wallets one by one, early victims could have raised alarms and saved later ones.nnn
What This Means for Self-Custody
The research findings suggest the event could weaken consumer confidence in hardware wallet safety and self-custody more broadly. With an estimated $102 million taken within hours, that concern is not abstract. The findings also flag possible regulatory scrutiny and louder demands for manufacturer accountability. Ledger has drawn a clear line around its own channels, but customers who lost funds may not find that distinction comforting.nnn
A Practical Checklist
There is a practical checklist for anyone holding a device from a third-party seller. Check the purchase source and date against Ledger's 90-day guidance. Be wary of any device that arrived with packaging or components that seem off.