Ledger Reveals Organized Crime Syndicate Invested Millions to Compromise Hardware Wallets

Ledger issued a statement after customers reported missing funds and altered devices, labeling the incident one of the most sophisticated attacks the digital‑asset industry has ever seen.

On Thursday, the hardware maker said a highly organized criminal group purchased Ledger wallets, implanted them with hardware capable of harvesting seed phrases, and returned the compromised units to the market through resellers.

Last week, Paris‑based Ledger announced it had opened an investigation after Southeast Asian customers reported losing funds following purchases from the Malaysian reseller CryptoBilis.

The company subsequently confirmed that at least one affected device harbored an unauthorized hardware implant.

While the exact amount lost remains unclear, blockchain investigator Specter estimated that $86 million was drained from the compromised devices. Ledger did not reply to written questions from Bitcoin Magazine.

“The criminal group constructed its own logistics and tech infrastructure, including seed‑collection servers and money‑laundering channels. They were patient, invested millions, and executed a coordinated strike that emptied wallets,” Ledger stated in its Thursday release.

“There was no vulnerability in Ledger’s chip, operating system, or servers; our systems remained uncompromised. The attack targeted the distribution channel after the devices left our control,” the company added.

The firm said that, as part of its largest investigation to date, it dispatched staff to other regions, including Europe, to verify that no other supply chains had been compromised.

It added that screened devices proved clean, and authorized resellers and distributors in Southeast Asia and Hong Kong have halted sales.

Ledger noted that it is collaborating with law enforcement to trace the stolen funds and dismantle the attackers’ infrastructure.

The exact number of affected customers remains undisclosed in Ledger’s statement.

The crypto industry continues to feel the impact of a July hack in which attackers stole nearly $120 million in bitcoin from Coldcard users.

Additionally, several data breaches have occurred this year, with fraudsters attempting to obtain Ledger customer information through the company’s payment processor, Global‑e.

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