Singapore police issued an urgent advisory on 28 October 2026 after at least two cryptocurrency users lost a combined S$3.5 million. The losses were traced to Ledger hardware wallets bought from retail stores in Singapore. Preliminary investigation found the devices contained malicious hardware components capable of capturing recovery phrases and private keys.
The advisory came after the victims reported unauthorized transfers from their wallets. Investigations revealed that the wallets had been compromised at the hardware level, allowing attackers to access the victims' funds without their knowledge. The malicious components were implanted in the devices before they were sold.
Once the attackers had those phrases, they drained the victims' wallets without their knowledge. The transactions were likely authorized using the stolen private keys, making them appear legitimate to the network. The victims only discovered the theft when they checked their balances.
Ledger has suspended sales across Southeast Asia and is reviewing the cases with police. The compromised devices have been linked to a regional reseller named CryptoBilis. Ledger has stated that it is cooperating with authorities and is taking steps to prevent further incidents.
The incident has raised concerns about the security of hardware wallets, which are widely considered one of the safest ways to store cryptocurrency. Hardware wallets are designed to keep private keys offline and require physical confirmation for transactions. However, supply chain attacks that tamper with the device before it reaches the user can bypass these protections.
Singapore police have advised the public to only purchase hardware wallets from official sources and to inspect devices for signs of tampering. They also recommend that users who suspect their device has been compromised should immediately transfer their funds to a new wallet with a freshly generated recovery phrase.
The Monetary Authority of Singapore (MAS) has not yet issued a separate statement, but it is likely monitoring the situation. The case highlights the need for stronger regulations and oversight in the cryptocurrency hardware supply chain.
For the victims, the losses are significant. S$3.5 million is a substantial amount, and recovery may be difficult. Police are continuing their investigation and have not ruled out further arrests. They have urged anyone with information to come forward.
This incident serves as a reminder that even the most secure technologies can be vulnerable to physical attacks. Users must remain vigilant and follow best practices for securing their crypto assets. As the ecosystem matures, it is hoped that manufacturers and resellers will implement stricter controls to prevent such tampering.