Allegations of a Massive Hack at One of the Largest Crypto Wallets—A Substantial Amount Stolen, CZ Issues a Warning

Ledger, the world’s largest hardware wallet manufacturer, has launched an investigation into allegations that cryptocurrency assets belonging to some users in Southeast Asia were stolen. On-chain analysis suggests that hundreds of wallets were affected and that over $86 million in cryptocurrencies may have been stolen. Binance founder Changpeng Zhao (CZ) also commented on the matter.

Ledger stated that the incidents may be connected to devices purchased from a vendor called CryptoBilis and requested that the company suspend sales and shipments until the investigation is complete. They also advised users who purchased Ledger devices from CryptoBilis within the last 90 days not to set up their devices yet. Users who had already set up their devices were advised to create a new seed phrase, switch to a trusted new Ledger device, and transfer their assets.

On-chain researcher Specter revealed that he tracked suspicious addresses that received funds from hundreds of victim wallets on the Ethereum, TRON, and Bitcoin networks. Specter estimates the total losses from the attacks exceed $86 million. However, the common method used in the attacks has not yet been definitively determined. It was emphasized that there is no evidence that Ledger devices or the company’s core infrastructure were directly compromised.

Binance founder Changpeng Zhao (CZ) said that initial findings indicate the incident may have been a supply chain attack linked to a single vendor. Zhao stated that a limited number of users may have purchased counterfeit or modified Ledger devices.

CZ specifically warned users who recently purchased Ledger to be cautious, stating that Ledger is one of the oldest and most reliable hardware wallet manufacturers in the industry and has proven its security over the years.

Zhao also stated that he believes participants in the BNB ecosystem and other actors in the cryptocurrency sector will provide support in tracking and recovering the stolen funds.

*This is not investment advice.