Singapore police have documented S$3.5 million in losses from tampered Ledger hardware wallets acquired through local retail outlets. At least two cases of compromised devices were reported since Sept. 10.
Ledger has ordered authorized resellers in Southeast Asia and Hong Kong to suspend sales while authorities investigate. The move signals recognition of a active supply chain vulnerability in a region where crypto adoption is accelerating.
Tampered hardware wallets bypass the core security model: private keys stored offline, isolated from internet-connected devices. Malicious modifications allow attackers to extract keys or redirect transactions without owner knowledge. Each reported case has resulted in total loss of assets held on the device.
The scale of loss from just two incidents—roughly S$1.75 million per case—reflects the significant holdings users concentrate in single hardware wallets. This supply chain vector is particularly dangerous because it defeats the user's security decisions at the point of purchase.
Users acquiring new hardware wallets should purchase directly from manufacturers or verified retailers only. Inspecting packaging integrity and device condition before initialization is critical before moving funds onto a new device.
