Ledger confirms unauthorized chip in a hardware wallet

Ledger confirmed that an affected hardware wallet sold through a Southeast Asian reseller contained an unauthorized hardware implant. The company said it was contacting users and investigating reports of cryptocurrency losses while the reseller CryptoBilis suspended sales of its inventory.

Security investigators estimated that losses associated with the wider incident could exceed $86 million, although estimates and attribution were still being examined. The device compromise underscores a supply-chain threat distinct from phishing or malware installed on an owner's computer.

A hardware wallet can protect signing keys against software attacks while still being vulnerable if the physical device is altered before delivery. Authorized distribution, tamper checks and verified firmware remain critical parts of the security model.