Ledger Hardware Tampering Case Reveals Major Scam Operator Among Victims
One of the most significant victims in the Ledger hardware tampering incident, which saw over 60 Bitcoin (BTC) stolen, valued at approximately $4.8 million, has been identified as a major scam operator. This development links the illicit funds to the compromised hardware.
Scam Funds Diverted Through Compromised Devices
Following the revelation of hardware implant theft through Ledger’s Southeast Asian distribution channels, blockchain analytics firm Chainalysis announced on the evening of October 15th (Taipei time) that a prominent scam operator was among the hardest-hit victims. The operator had over 60 Bitcoin, worth around $4.8 million, drained from their accounts. This update connects the flow of scam proceeds with the hardware tampering scheme.
According to a detailed post by Chainalysis, the scam operator had previously paid individuals to create fake sales and reviews for legitimate products. They then allegedly instructed victims to deposit additional personal funds to claim their earnings, citing a “negative balance.” On September 22nd, the perpetrator transferred the illicit gains into three separate Ledger addresses. On October 9th, the thief emptied these three addresses with single transactions, consolidating the funds into a single wallet already flagged as containing stolen assets. On-chain data indicates that the scam proceeds were initially “cold-stored” in a hardware wallet before being withdrawn on the same day the large-scale theft from tampered devices occurred.
How the Tampering Occurred
Ledger’s official blog stated that criminal groups purchased genuine products, disassembled them to install hidden components designed to extract recovery seed phrases during setup, and then reintroduced them through Southeast Asian distributors. The company emphasized that its chips, operating system, and servers were not compromised. CoinDesk reported that the implants could exfiltrate the 24-word seed phrase via LTE/eSIM and confirmed that the losses were linked to devices sold by distributor CryptoBilis. BleepingComputer also cited at least one device containing unauthorized hardware implants.
Estimated Losses and Mitigation Efforts
Ledger has not yet released an official total loss figure. Bitquery later updated its estimate to approximately $102 million across 324 wallets and six blockchains. Earlier, CoinDesk cited estimates ranging from $93.2 million to $94.5 million, noting that Tether had frozen approximately $10 million in related USDT. The discrepancies are largely attributed to the subsequent identification of additional addresses, and these figures should be considered on-chain estimates, unconfirmed by the company.
Related Developments
Ledger has requested the suspension of sales in six Southeast Asian countries and Hong Kong due to the expanding hardware tampering case, leading to the delisting of affected distributors.
The Ledger hardware tampering issue has continued to unfold, with European electronics retailers also delisting the products. Reports have emerged of users purchasing two devices that contained hidden mobile signal antennas.
In response to the tampering storm, Ledger has launched its new security device, the Atom, a $849 “non-calling Android cold wallet” with built-in anti-tampering features.
Separately, the number of stablecoin wallets in China has increased by 43 times in two years, with transaction volumes more than three times the global average.
