Binance's CZ Warns of Risk of Supply Chain Attack on Ledger Hardware Wallets

ChainCatcher report: Zhao Changpeng has posted a warning to Ledger hardware wallet users, especially those who have recently purchased devices. According to current information, this incident appears limited to the supply chain, involving a single supplier, with a small number of users potentially receiving counterfeit or tampered Ledger devices.

Zhao Changpeng stated that Ledger is a long-standing and highly secure hardware wallet brand within the industry, yet such incidents can still occur. He anticipates and urges the BNB ecosystem and the broader crypto industry to assist in tracking stolen funds and facilitating their recovery.

Previously, Ledger confirmed it is investigating an asset theft incident involving users in Southeast Asia, whose devices were purchased through the distributor CryptoBilis. Ledger has requested CryptoBilis to suspend all sales and shipments and advised users who purchased devices through this distributor within the past 90 days to refrain from initializing their devices. Those who have already set up their devices should generate a new mnemonic phrase to create a new Ledger signing device and transfer their assets to the new wallet.

On-chain investigator Specter estimates that hundreds of wallets on the Bitcoin, Ethereum, and Tron networks have been compromised in this incident, with losses exceeding $86 million. Security researcher tanuki42 previously estimated losses at over $72 million and noted that the amount continues to rise. The exact cause of the incident and whether the affected devices contain security vulnerabilities remain under investigation.