Here’s what happened in crypto today

Today in crypto, Ledger asked resellers across Southeast Asia and Hong Kong to suspend hardware wallet sales amid an investigation into tampered devices, European electronics retailer MediaMarktSaturn removed Ledger products from stores and online platforms, and rival Trezor began cutting its authorized reseller network as a precaution.

Ledger asks resellers to halt sales in Southeast Asia and Hong Kong

Ledger has requested sellers and distributors of its devices in six Southeast Asian countries and Hong Kong to suspend sales and remove its hardware wallets from shelves as it investigates reports of tampered devices.

In a post on X on Tuesday, Ledger said the request covers resellers in Indonesia, Singapore, Thailand, the Philippines, Vietnam, Malaysia and Hong Kong.

“To be clear, as the investigation continues, the only confirmed incidents remain contained to Southeast Asia. We have not verified a drain linked to a device bought elsewhere,” said Ledger.

“The investigation is ongoing to determine who tampered with these devices and where in the distribution chain it happened,” it added.

The wider sales suspension request expands on Ledger’s earlier request for reseller CryptoBilis to stop sales and shipments. The investigation became public on Oct. 9 after reports of stolen crypto linked to devices purchased through the reseller.

Trezor cuts reseller network after Ledger wallet tampering reports

Hardware wallet maker Trezor is reducing its authorized reseller network after reports that a Southeast Asian reseller modified Ledger devices to steal users’ recovery phrases.

Trezor said Tuesday the decision was precautionary and that it had no evidence its own devices were compromised. Chief commercial officer Danny Sanders said affected resellers would lose their authorized status on Jan. 1, with shipments to those businesses stopping immediately.

The move follows rival Ledger’s confirmation that at least one device sold by reseller CryptoBilis contained an unauthorized hardware implant capable of capturing recovery phrases and transmitting them over cellular networks.

The incident has raised questions about the security of hardware wallet supply chains. Trezor told Cointelegraph that its existing checks can detect counterfeit devices and modified firmware, but the Ledger implant operated differently by reading information displayed on the device’s screen.

Blockchain investigators have estimated potential losses of between $72 million and $86 million, although Ledger said it had not confirmed the total.

Trezor advised customers to purchase devices directly from the manufacturer and consider multisignature wallets using hardware from different providers.

MediaMarktSaturn pulls Ledger products amid tampering reports

MediaMarktSaturn, the parent company of European electronics retailer MediaMarkt, has removed Ledger products from its physical stores and online platforms amid reports of tampered hardware wallets.

“The products have been removed from our product lineup internationally in all of our countries. We did this as a precautionary measure,” a MediaMarktSaturn spokesperson told Cointelegraph.

Ledger said Tuesday that MediaMarktSaturn suspended sales in coordination with the wallet maker following a report of a hardware implant from a customer in Germany. Ledger said no fund losses had been reported in connection with that case and that it had no indication its infrastructure, systems or services were compromised.

An X user known as Johannes claimed Monday that he purchased two Ledger wallets from separate MediaMarkt stores. He said both contained unauthorized cables and cellular modules.

The security concerns emerged Friday after Ledger said it is investigating reports of losses involving devices sold through Southeast Asian reseller CryptoBilis. Ledger said Tuesday that implants transmitted users’ recovery phrases over cellular networks and that it was investigating reports beyond CryptoBilis.