Ledger Hack: Reports Indicate Hardware Wallets Being Drained Of Funds

Ledger is investigating reports of loss of funds. This is based on the company’s own statements, as well as external and reporting.

In a post on X, Ledger stated that they are reviewing pilfered funds in Southeast Asia from users who purchased their products from a reseller named ” CryptoBillis.

“we [Ledger] have asked CryptoBilis to pause all sales and shipments of Ledger devices. We recommend Ledger users who purchased from this reseller in the last 90 days to not initiate set up if you have not done so yet. If you have set up your Ledger device, consider moving assets to a new Ledger signer (with new seed). We will continue to inform customers of updates as the investigation progresses.”

A post claims a Ledger user had their wallet drained of $100,000 in USDT.

“Seed phrase were handwritten and kept in a safe. Never touch my Ledger Stax. The Ledger wallet was used as a place to keep funds, and I don’t interact with anything other than receiving funds.”

While the user does not say exactly where the wallet was purchased, they note it was from an official reseller.

Another post on X by @SpecterAnalyst says they tracked illicit transfers totaling $86 million.

Earlier this week, a crypto analyst warned on X and called for Bunker Mode due to his belief that AI has reached the point where it can be utilized to compromise wallets holding crypto.

“My personal recommendation is to set in motion a controlled mass migration of assets to fresh addresses, i.e. addresses whose pubkeys remain hidden behind a hash. Holders, starting with large and sophisticated ones, should consider moving the bulk of their funds to addresses that have never signed a transaction. And when they do sign one, they should also move remaining funds to a new address…”

For hardware wallets, the possibility of a breach is especially concerning, since people use these devices because they worry holding funds online and the risk of a hack.

Binance f ounder “CZ” was following the news and doling out advice; he recommended caution when using any hardware wallet:

“When you buy a hardware wallet (or download a new software wallet), leave it for a couple of weeks before moving any meaningful amount of funds to it. And follow the news in those weeks (and after), for hacks, etc. Hardware can be tempered with, software official website can be hacked. Self-custody comes with extra responsibilities.”

“When you buy a hardware wallet (or download a new software wallet), leave it for a couple of weeks before moving any meaningful amount of funds to it. And follow the news in those weeks (and after), for hacks, etc. Hardware can be tempered with, software official website can be hacked. Self-custody comes with extra responsibilities.”