Crypto hard wallet maker Ledger suspends sales in S-E Asia; tampered devices found sold in S’pore

SINGAPORE – Paris-based cryptocurrency hardware wallet maker Ledger has suspended sales across South-east Asia after discovering that some of its devices were tampered with to steal users’ funds.

Following an Oct 9 incident in which wallet owners reported stolen cryptocurrency, Ledger announced on Oct 13 that it is also asking regional resellers and distributors to pull the hardware wallets from their shelves.

A hardware wallet is a physical device used to store private keys offline, making them more secure than storing the keys online, where they could be vulnerable to hacking.

The manufacturer is currently investigating devices sold by Malaysian reseller CryptoBilis, which were found to contain malicious implants.

These implants can read information on the wallet’s screen, and when users key in a 24-word recovery phrase to access their cryptocurrencies, the information is relayed to a third party.

According to blockchain analysts, losses are estimated at more than US$86 million (S$110 million), although Ledger said it has not been able to confirm the number of people affected or the total amount lost. The manufacturer added that the losses were confined to South-east Asia.

The sales suspension currently applies to Singapore, Malaysia, Indonesia, Thailand, the Philippines, Vietnam and Hong Kong.

In Singapore, a tampered device was found to have been sold at Metapod in Changi Airport. The Straits Times has contacted Metapod and Ledger for more information.

Separately, European electronics retailer MediaMarktSaturn has also pulled Ledger’s products from its shelves across the 11 markets where it operates, after a customer in Germany reported an implant in a device.

According to Ledger’s website, its products are manufactured and assembled in France, Hungary and Vietnam, before being shipped to retailers and customers from its warehouse in Vierzon, France, or its distribution centre in Memphis, Tennessee, in the US.

Aqil Hamzah is a transport journalist at The Straits Times. He is also interested in issues related to crime and technology.