Ledger has requested that all distributors and resellers in Hong Kong and Southeast Asia immediately halt sales and remove its hardware wallets from shelves. The measure follows reports of devices being tampered with via hidden implants.
The affected markets include Indonesia, Singapore, Thailand, the Philippines, Vietnam, and Malaysia. Ledger stated that all confirmed incidents of compromised devices are linked to the regional reseller CryptoBilis.
The company's Donjon security team identified that the malicious implants capture 24-word recovery phrases during setup and transmit them via LTE. On-chain investigator Specter estimates losses at over $86 million, though Ledger has not verified this figure.
Ledger clarified that its internal systems, infrastructure, and direct sales channels remain secure. The company is currently investigating the distribution chain to determine the source of the tampering.
Additionally, the retailer MediaMarkt Saturn has suspended sales of Ledger products in Germany after a customer reported a suspicious implant. No funds were lost in this specific case.
Separately, competitor Trezor announced it will terminate all reseller authorizations starting January 1, 2027, as a precautionary step, noting no evidence of compromise within its own supply chain.
