Authorized hardware wallet reseller CryptoBilis underwent a corporate ownership transfer months before becoming the epicenter of a supply chain attack that resulted in tens of millions of dollars in stolen cryptocurrency.
Corporate registry filings that surfaced on Twitter reveal that 100% of CryptoBilis shares were transferred to an individual identified as Jiaming, whose registered address is located in Heilongjiang province, China. The share transfer was finalized in August following a corporate acquisition that closed earlier in March.
Former co-founders Arravind Prabu confirmed they surrendered all administrative, operational, and system access to the incoming management team upon completion of the March sale. The founders stated they retained no operational visibility into the business following the handover.
The revelations follow a public alert issued by hardware wallet manufacturer Ledger, which requested CryptoBilis to freeze all product sales and shipments across its retail channels in Malaysia, the Philippines, and Indonesia. Blockchain analytics platform Arkham tracked more than $80 million in drained digital assets across Bitcoin, Ethereum, and TRON networks from wallets linked to devices distributed by the reseller.
Security researchers and industry analysts investigating the breach reported that select hardware devices shipped through the reseller contained physical modifications and spy implants designed to extract recovery seed phrases.
In response to the manufacturer request, CryptoBilis issued a notice confirming a temporary suspension of sales and shipments for all hardware wallet brands across its online platforms and physical retail locations.
Corporate records and social media statements indicate that a non-disclosure agreement accompanied the acquisition, preventing the former owners from publicly announcing the ownership change at the time of the transaction.
Ledger advised customers who purchased devices from CryptoBilis within the last 90 days to leave uninitialized devices unconfigured. Users who have already configured devices bought through the reseller were instructed to transfer assets immediately to a separate signer utilizing a newly generated recovery phrase.
Investigators have not established direct evidence linking the change in corporate ownership to the physical device modifications.
What Affected Hardware Wallet Users Should Do Immediately
- Uninitialized Devices: Do not unbox, connect, or configure any hardware wallet purchased from CryptoBilis within the last 90 days. Keep the packaging sealed pending official clearance from manufacturer support.
- Active Devices: Users operating a device purchased through the distributor should immediately transfer all digital assets to a secure wallet.
- Recovery Phrases: Always generate a completely new recovery seed phrase when migrating funds. Never reuse seed phrases generated on a suspect device.
- Official Support: direct all inquiries and verification requests exclusively through official manufacturer help channels at
support.ledger.com.
This article is published on BitPinas: Ledger Reseller CryptoBilis Underwent Ownership Change Prior to Supply Chain Investigation
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