Ledger reviews reseller policies after hardware wallet spy chip attack

Ledger SAS is reviewing its reseller and anti-tampering policies after hardware implants in some of its devices were used to steal an estimated $90 million in cryptocurrency from users, according to Bloomberg. On Tuesday, the Paris-based company directed resellers across Southeast Asia and Hong Kong to halt device sales pending the outcome of the investigation.

Chief Executive Officer Pascal Gauthier said in a social media post that Ledger is assessing the controls that apply to both its direct sales and its reseller network. In his own social media post, CTO Charles Guillemet said Ledger is examining its anti-tampering measures and urged anyone who thinks their device may have been modified to consult the company's inspection guidelines and mail any suspect units back to Ledger.

The incident traces back to Malaysian reseller CryptoBilis, according to Bleeping Computer. Users began reporting fund losses on Friday, some tied to devices bought through that reseller. Ledger confirmed hardware tampering on at least one device and said all reported cases of unexpected fund drains were linked to CryptoBilis. The company described the affected volume as "limited."

According to Bleeping Computer, Ledger opened a formal investigation into the losses on October 9 and told CryptoBilis to halt sales and shipments. The next day, the company confirmed a hardware implant had been found in at least one affected device.