GoKawiilTampered Ledger hardware wallets sold by third-party resellers drain over $93M in crypto
An ongoing investigation has found that counterfeit or tampered Ledger hardware wallets, sold through third-party resellers like Cryptobilis in Southeast Asia and elsewhere, contained hidden eSIM and LTE chips capable of capturing users' recovery phrases. Researchers say more than $93 million has already been stolen from affected users, while wallets purchased directly from Ledger remain unaffected. Cryptobilis has halted sales of all hardware wallet brands while the investigation continues.
GoKawiil's interpretation of the reporting above, not reported fact.
The incident suggests that even security-focused hardware can be compromised not through the manufacturer but through supply-chain tampering at resale points, which could undermine broader trust in 'cold storage' crypto security. It also points to a growing sophistication in physical hacking methods, using hidden circuitry to photograph private keys during setup rather than relying on software exploits. Ledger's advice to avoid initial setup on recently purchased devices implies the company believes the compromise window is tied to specific resale channels, though the scope of affected units is still being determined.
- Hacked Ledger wallets with hidden eSIM/LTE chips have stolen over $93 million from users.
- Compromised devices reportedly originated from resellers like Cryptobilis in Malaysia, not from Ledger directly.
- Ledger urges recent buyers from affected resellers to avoid initial setup and move funds to a new wallet with a new seed.
Ledger Nano X Hardware Wallet — Given this supply-chain tampering scandal, it's critical to buy hardware wallets directly from Ledger or other authorized official channels rather than third-party resellers. The Ledger Nano X remains a solid choice for securing crypto offline, but only when purchased sealed and verified straight from the manufacturer.
See Ledger Nano X Hardware Wallet on Amazon → Affiliate link — we may earn a commission on purchases, at no extra cost to you. Product picked by AI based on this article; it is not a tested recommendation.Source: tomshardware.com — Bruno Ferreira, 2026-10-13
Published there as: “Store-bought hardware crypto wallets had secret chips installed that enabled stealing crypto recovery phrases”
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