Scammer Loses $5M in Bitcoin to Ledger Hardware Wallet Attack

Ledger hardware wallet attack — A scammer who stole bitcoin via a fraudulent scheme has lost nearly $5 million of their illicit gains after being targeted in the recent Ledger hardware wallet theft, according to blockchain analysis firm Chainalysis.

Chainalysis reported on Thursday that an address linked to a ‘task scam’—where victims were paid to fake sales reviews before being defrauded—held over 60 BTC. The scammer moved these stolen proceeds into three Ledger addresses on September 22, only for thieves to drain all three wallets in a single transaction on October 9.

The theft is part of a broader, sophisticated attack on Ledger devices. The company stated that an organized crime group installed implants into devices sold through a Malaysia-based reseller, CryptoBilis, allowing them to read users’ seed phrases and drain funds. Blockchain investigator Specter estimates total losses from this attack at $86 million.

Ledger has launched an investigation and is working with law enforcement, confirming that CryptoBilis has stopped selling its products. This incident follows a similar large-scale attack in July on Coldcard hardware wallets, which led to approximately $120 million in losses due to a firmware bug.