Ledger Confirms Hidden Chip in Wallet Amid Theft Claims

Hardware wallet manufacturer Ledger has confirmed finding an unauthorized hardware implant inside a customer's device during an October 10 investigation into reported thefts involving Southeast Asian reseller CryptoBilis. According to CryptoNews, blockchain researchers have estimated suspected cryptocurrency losses exceeding $86 million across hundreds of wallets.

Following the reports, CryptoBilis suspended sales of all hardware wallet products. Ledger advised customers who purchased devices through the reseller against setting them up, and recommended that users already operating the hardware transfer funds to a new device initialized with a fresh recovery phrase.

Physical Tampering Discovery

Security researcher Mark Karpelès reported finding suspicious electronics behind the screen of a Ledger Nano X device obtained from Malaysia. Technical analysis from Tibane Labs suggested the modified hardware involved a microcontroller and cellular communication components positioned to potentially capture display information during wallet setup.

Ledger stated that its internal security infrastructure and systems have not been compromised. The manufacturer has contacted law enforcement and is working with the Security Alliance's SEAL_911 incident response initiative.

Key facts

• Ledger confirmed an unauthorized hardware implant in an affected customer's device on October 10.
• Reseller CryptoBilis suspended all hardware wallet sales during the ongoing investigation.
• Bitquery estimated $92.9 million in losses across 311 wallets, a figure unconfirmed by Ledger.
• Former CryptoBilis executives stated they transferred operational control of the business in March 2026.