Crisis in crypto custody? Ledger investigating $86M theft
00:00 Speaker A Hey yeah, Ledger investigates potential wallet tampering after reports of 86 million dollars in crypto stolen. 00:15 Speaker A The hardware wallet maker said it is investigating devices sold by a Southeast Asian reseller as social posts swirl about crypto assets drained from Bitcoin, Ethereum, and Tron addresses. 00:30 Speaker A So they confirmed over the weekend that there was an issue here and that it came from their third-party seller, which is an approved third-party seller, which is crypto Bilis. B I L I S, nobody knows how to say that. Bilis? Bilice? 00:50 Speaker A Crypto Bilice. I'm going with Bi-lice. So, BitQuery is estimating 93.2 million in linked losses. 01:00 Speaker A There've been quite a few different estimates, all of them above 86 million. But what the crazy story here is that these devices basically were being sold by this third party and there's evidence that the physical devices were tampered with by someone at this third party. 01:21 Speaker A They put something in there that allowed the devices to be hacked. Holy crap, man. 01:27 Speaker A You guys were here obviously for the cold card hack that really shook the self-custody world uh right out of its shoes. Then we have the massive data breaches from different companies. 01:42 Speaker A Bits of gold and Trezor had the massive one and others. So we have, you know, the physical breach on cold card. We have your data being leaked and attached to your holdings with Treasure and others. 01:59 Speaker A And now you can't even trust that your wallet arrives without already being hacked. The literal hardware for it. It is very hard right now to trust self-custody. 02:11 Speaker A Unfortunately, I'm not saying that you should not self-custody. I just don't know how you handicap your device having something added to it uh by a third seller. Yes, you can order directly from Ledger, they say that they've had no issues. But this is crazy. 02:26 Speaker A We're clearly having a crisis in existential, an existential crisis in custody. A lot of people will look to treasury companies. I think more specifically maybe to ETFs or even holding their coins on exchanges as this self-custody crisis sorts itself out.
