Changpeng Zhao, widely known as CZ, warned Ledger hardware wallet users on Oct. 9 to stay alert, with a particular focus on people who bought devices recently. Based on the information currently available, he said the case appears confined to the supply chain and tied to a single supplier, with a limited number of users potentially receiving counterfeit or tampered Ledger devices.
CZ described Ledger as a long-established hardware wallet brand with a strong security reputation, while noting that incidents of this kind can still happen. He said he expects and urges the BNB ecosystem and the broader crypto industry to help trace stolen funds and support recovery efforts.
Earlier, Ledger said it was investigating a theft case affecting users in Southeast Asia. Those users had purchased devices through reseller CryptoBilis. Ledger has asked CryptoBilis to halt sales and shipments and advised users who bought through the reseller in the past 90 days not to initialize their devices. Users who already set them up were told to create a new Ledger signing device with a new seed phrase and move assets to a new wallet. On-chain investigator Specter estimated losses above $86 million, while security researcher tanuki42 had earlier put losses above $72 million and said the figure was still rising.
BlockBeats reported on Oct. 9 that Changpeng Zhao, or CZ, warned Ledger hardware wallet users to stay cautious, especially those who purchased devices recently.
Based on the information available so far, CZ said the incident appears to be limited to the supply-chain stage and involves one supplier. A small number of users may have bought counterfeit or tampered Ledger devices. He added that Ledger is a long-established hardware wallet brand with relatively strong security, though incidents like this can still occur.
CZ calls for help tracing stolen funds
CZ said he expects and urges the BNB ecosystem and the wider crypto industry to help trace the stolen funds and push for recovery.
Ledger investigates case tied to CryptoBilis
Ledger had earlier confirmed that it is investigating an asset-theft incident affecting users in Southeast Asia. The users involved had purchased devices through reseller CryptoBilis.
Ledger has asked CryptoBilis to suspend sales and shipments. It also advised users who bought devices from that reseller in the past 90 days not to initialize them. If setup has already been completed, users should create a new Ledger signing device using a new seed phrase and transfer assets to a new wallet.
Investigators put losses in the tens of millions
On-chain investigator Specter estimated that the incident has already led to thefts from hundreds of wallets across the Bitcoin, Ethereum and TRON networks, with losses exceeding $86 million.
Security researcher tanuki42 had earlier estimated losses at more than $72 million and said the total was still increasing.
The exact cause of the incident, and whether the devices involved contain a security vulnerability, has not yet been confirmed and remains under investigation.
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