Ledger Says CryptoBilis Cases Limited, Tether Freezes $10M in Stolen USDT

CryptoBilis Ledger exploit — Ledger says unauthorized hardware implants caused thefts from devices sold by its Southeast Asian reseller CryptoBilis, with Tether freezing $10 million in USDT linked to the exploit as blockchain analysts track up to $93.2 million in stolen funds.

In a statement on October 12, the hardware wallet maker stated that every confirmed case of theft is tied to a device sold by CryptoBilis, an authorized reseller based in Indonesia. Ledger has advised customers who purchased devices through this channel to not set up any unused hardware and to transfer assets from potentially compromised wallets to new devices with freshly generated recovery phrases.

Blockchain analytics firms tracking the incident estimate the total siphoned from hundreds of wallets could be as high as $94.5 million. Tether, the issuer of the USDT stablecoin, has confirmed it has frozen $10 million of the stolen funds on the chain in coordination with investigators.

Ledger’s investigation found evidence of an unauthorized hardware implant in at least one of the affected devices. The company maintains that the issue is isolated to the CryptoBilis sales channel, a stance that has drawn criticism from some security experts who argue Ledger must take responsibility for the integrity of its authorized distribution network.