Ledger Wallet Users Drained for $90M! (Everything You Need to Know)

The $90 million theft was caused by a supply-chain attack involving hidden LTE implants in tampered Ledger wallets sold by the reseller CryptoBilis, not a software hack of the devices themselves.

How to Use a Cold Storage Wallet

To securely set up and use a hardware cold wallet, follow these steps:

Purchase from Official Sources: Buy only directly from the manufacturer’s official website or a verified authorized reseller. Avoid third-party marketplaces (like Amazon) or unknown regional resellers to prevent supply-chain tampering.
Inspect the Device: Upon arrival, check the anti-tamper seals and packaging for any signs of physical manipulation or pre-filled recovery phrases. A legitimate device should always ship with an empty PIN and no pre-generated seed phrase.
Initialize and Set PIN: Connect the device to the official companion app (e.g., Ledger Live, Trezor Suite) downloaded from the manufacturer’s site. Set a unique PIN code directly on the device’s physical buttons or touchscreen.
Secure the Recovery Phrase: Write down the 12- or 24-word recovery phrase on the provided paper or metal backup sheet. Never photograph, type, or store this phrase digitally. Store it in a secure, offline location (such as a fireproof safe).
Transfer Funds: Generate a new public address on the device, verify it on the device’s screen, and transfer your crypto assets from an exchange or hot wallet to this cold storage address.
Sign Transactions Offline: When sending funds, prepare the transaction in the companion app. The transaction details will be sent to the hardware wallet, where you must physically verify and confirm them. The private key signs the transaction inside the device and never leaves it.

5 Examples of Different Cold Wallet Brands

Ledger: Known for models like the Nano X, Flex, and Stax, featuring secure element chips and broad support for over 15,000 cryptocurrencies.
Trezor: A pioneer in open-source hardware wallets, offering models like the Safe 3 and Model T with EAL6+ certified secure elements.
Tangem: A credit-card-sized NFC wallet that generates and stores keys on the card itself, often eliminating the need for a seed phrase.
Ellipal: Features air-gapped security using QR codes for transactions, with no USB or Bluetooth ports to prevent digital interception.
Coldcard: A Bitcoin-focused hardware wallet that emphasizes air-gapped signing and advanced security features like key splitting.

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