Ledger is asking resellers and distributors in Southeast Asia and Hong Kong to suspend sales of its cryptocurrency hardware wallets while it investigates an incident in which someone in the distribution chain tampered with the devices and later drained crypto from them, the company said in a Tuesday (Oct. 13) post on X.
Ledger’s request covers Indonesia, Singapore, Thailand, the Philippines, Vietnam, Malaysia and Hong Kong. The company has confirmed incidents only in Southeast Asia, and it has not verified any incidents linked to devices elsewhere, according to the post.
“We understand this is concerning, and will continue to provide updates from the Ledger Donjon [Ledger’s security research team] as the investigation progresses. Stay vigilant,” Ledger said in the post. “We have no indication that Ledger’s infrastructure, systems or services or direct sales channel have been compromised.”
Bloomberg reported Tuesday that spyware was implanted in some Ledger devices, enabling someone to steal $90 million in cryptocurrency. Users of Ledger devices began reporting losses Friday (Oct. 9), and some of their devices were purchased from Malaysian reseller CryptoBilis, according to the report.
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CryptoBilis said in an official notice shared in a post on X that after Ledger published its security notice, CryptoBilis paused all sales and shipments of Ledger devices while Ledger investigates the incident. CryptoBilis is cooperating with that investigation.
In an update shared in another post on X, CryptoBilis said it temporarily paused its sales and shipments of all hardware wallets, of all brands, in Malaysia, the Philippines and Indonesia.
“We are doing this as a precaution, to protect our customers while Ledger’s investigation continues and while we review our own processes with the help of independent specialists,” CryptoBilis said in the update.
Following the incident involving Ledger, other makers of crypto hardware wallets are reassessing how they work with third-party sellers, according to the Bloomberg report. OneKey and Trezor have said they are halting or reviewing some of their relationships with sellers, per the report.
OneKey said in a Monday (Oct. 12) response to the incident that while it has no reports of its users losing assets in this incident, the company has terminated CryptoBilis’s authorization as a reseller, has stopped adding resellers and is reviewing existing ones.
Trezor said in a post on X that while there is no evidence that its devices have been compromised, it has reduced the number of resellers so that it can more effectively check the ones it works with.
It was reported in May that Ledger paused its plans for a U.S. initial public offering due to an unfavorable market for crypto IPOs.
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