Crypto Hardware Wallets Hit in Estimated $70 Million Attack

Crypto hardware maker Ledger SAS said it’s investigating reports that a number of users had seen a “loss of funds” from their wallets, knocking the industry further as attacks continue to pepper a technology once considered impervious to digital theft.

The Paris-based company said the information it had gathered to date indicated that affected wallets had been purchased from a Malaysian reseller named CryptoBilis. No reports had been made regarding products purchased directly from Ledger or about its infrastructure, systems and services, a spokesperson added.

“As a precaution, and pending the results of our investigation, we have asked CryptoBilis to pause all sales and shipments of Ledger devices,” the company said in a statement posted on X on Friday. It advised users who had bought unused devices from CryptoBilis in the last 90 days to not set them up, while those who were already using them should consider moving their funds to another wallet.

The total amount lost in the incident is estimated at more than $70 million as of late morning in New York, according to analysis posted by Emmett Gallic, an analyst at blockchain analytics firm Arkham Intelligence.

Ledger declined to provide additional comment. CryptoBilis didn’t immediately respond to a request for comment.

The ongoing incident is the latest in a series of hacks to plague the crypto industry in recent months, including the theft of more than $100 million in Bitcoin from wallets hosted by Canada-based Coinkite Inc. Hardware wallets, also known as cold storage, are typically considered among the safest places to store cryptocurrency as they use physical devices alongside private passwords to protect assets from unwanted activity.

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