SINGAPORE, October 28, 2026 — Victims in Singapore have lost about $3.5 million after purchasing tampered cryptocurrency hardware wallets at local retail stores.
Police Statement on Financial Losses
In a statement released today, the police confirmed that two cases involving hardware wallets from Paris-based manufacturer Ledger have been reported to authorities since September 10.
Preliminary investigations revealed that devices bought at specific retail locations in Singapore contained malicious hardware components designed to compromise user security.
The police stated these unauthorized parts are capable of capturing users’ recovery phrases or private keys before the legitimate owners can access their funds.
According to blockchain analysts, total losses across the region are estimated at more than US$86 million, equivalent to S$110 million.
Ledger noted it could not confirm the exact number of people affected or verify the full extent of financial damage beyond the initial reports.
Regional Sales Suspension
The manufacturer suspended sales across Southeast Asia on October 14 following the discovery of the tampering in its supply chain.
This suspension covers markets including Singapore, Malaysia, Indonesia, Thailand, the Philippines, Vietnam, and Hong Kong.
A hardware wallet functions as a physical device that stores private keys offline, making them more secure than storing keys online where they are vulnerable to hacking.
The police added that they are in contact with Ledger, which is currently reviewing the affected cases to determine the scope of the compromise.
Technical Analysis of the Compromise
Investigations found that the malicious components were inserted into devices sold at certain Singapore retail stores rather than being a global manufacturing defect.
Once installed, these components allow an attacker to intercept the recovery phrase when a user enters it into the device for the first time or during subsequent transactions.
This method bypasses standard security protocols because the private keys are generated and stored on the device itself without ever leaving the hardware.
Analysts note that while online wallets are convenient, they remain inherently vulnerable to remote attacks, whereas physical devices like Ledger offer a layer of protection that can be undermined by supply chain tampering.
Public Safety Advisories
Police have urged the public to be cautious when holding or transacting cryptocurrencies while waiting for further updates on the investigation.
They are advised to stay updated and refer to official advisories issued by hardware wallet providers regarding device safety and firmware updates.
Users should take appropriate steps to safeguard their devices, such as verifying product authenticity through authorized dealers before purchase.
Cryptocurrency holders must never disclose their private keys, recovery phrases, or seed phrases to anyone, including support staff claiming to be from the wallet manufacturer.
Members of the public with information on such crimes can call the police hotline on 1800-255-0000 or submit details online at www.police.gov.sg/i-witness.
For more information on scams, members of the public may also call the 24-hour ScamShield Helpline on 1799 or visit www.scamshield.gov.sg.
Legal And Financial Implications
Legal experts have warned that victims of the tampered Ledger wallets may face significant challenges in recovering their lost funds, as cryptocurrency transactions are typically irreversible by design. The police have confirmed that the malicious hardware components are capable of capturing recovery phrases, which allows unauthorized parties to drain digital assets without the owner’s consent. While the sales suspension across Southeast Asia aims to prevent further victims, those who have already suffered losses are advised to preserve all purchase receipts and device packaging as potential evidence for ongoing investigations.
Financial regulators continue to monitor the situation, noting that the estimated total losses of over US$86 million (S$110 million) across the region highlight the broader risk to cryptocurrency users. Authorities have reminded the public that they can report information related to the scams via the police hotline at 1800-255-0000 or through the online portal at www.police.gov.sg/i-witness, with additional scam prevention resources available through the 24-hour ScamShield Helpline on 1799.
Sources
- About $3.5 million lost in S’pore due to tampered Ledger crypto hardware wallets
- About $3.5 million lost in S’pore due to tampered Ledger crypto hardware wallets
Photo: Amjith S / Unsplash (Unsplash License)
