Ledger crypto wallet hit by hardware attack, resulting in losses of over $90 million

Investing.com – Cryptocurrency hardware wallet manufacturer Ledger is investigating an attack involving the tampering of its devices. Some units were found to contain hidden surveillance components, with estimated losses exceeding $90 million.

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The investigation centers on CryptoBilis, a cryptocurrency retailer based in Malaysia. Since October 9, customers of the platform have reported the unexplained disappearance of their assets. Blockchain researchers estimate that the total value of the stolen digital assets exceeds $90 million.

Paris-based Ledger stated that an organized criminal group installed hidden hardware inside some of its wallet devices.

Meanwhile, the company is also investigating potentially compromised devices purchased through other channels, suggesting that the scope of the attack may extend beyond CryptoBilis.

CryptoBilis has temporarily closed its physical store in Kuala Lumpur. Ledger reports that it is working with local law enforcement, while CryptoBilis has yet to provide a response.

Independent security researchers have noted that the tampered devices contain specialized components capable of intercepting sensitive information intended for the wallet’s screen and relaying that data to the attackers via a cellular network connection.

Such hardware modifications allow criminals to gain access to users’ cryptocurrency assets without needing to directly breach the device’s primary security chip.

This investigation is not an isolated incident; the hardware wallet industry has experienced several security-related issues in the past.

Earlier this year, a software vulnerability was discovered in devices manufactured by Coinkite, which reportedly led to the loss of approximately $130 million worth of Bitcoin.

Additionally, a logistics provider used by Trezor suffered a data breach, resulting in the exposure of personal information belonging to approximately 67,000 customers.

The investigation has also uncovered evidence of potentially compromised devices outside of Malaysia.

According to reports, a Ledger Flex device purchased at Singapore’s Changi Airport was found to have been tampered with, specifically involving its display connector, cellular chip, and SIM card.

These findings have raised serious questions regarding how these compromised devices entered retail distribution channels and whether additional users remain at risk. At present, Ledger has not yet determined the full scope of the attack, nor has it disclosed the specific number of affected devices.