German Ledger Reseller MediaMarkt Pauses Sales After $86M Wallet Drain

MediaMarkt Removes All Ledger Wallets From Stores

MediaMarkt, the official European reseller for Ledger hardware wallets, has stopped selling the devices. The company pulled its Ledger products from both physical stores and online platforms after reports emerged that some wallets may have been fitted with physical spyware.

The move comes after an incident last week in which wallets sold by Malaysian reseller CryptoBilis were drained of millions of dollars worth of cryptocurrency. MediaMarkt told Cointelegraph it has "removed all of the manufacturer's products" and is in contact with Ledger.

"We take this incident very seriously," the company said.

What We Know About the Spyware

• A $86 million draining incident involved Ledger wallets sold by CryptoBilis
• Former Mt. Gox CEO Mark Karpelès has been helping identify spyware in dismantled wallets
• Karpelès reportedly found spyware in wallets sold by MediaMarkt, Philippine reseller LazMall, CryptoBilis, and Singapore's Metapod airport store
• Ledger's security team says the spyware could record a wallet's 24-word recovery phrase and transmit it via an attached eSIM

Ledger's Response

Ledger's latest statement only confirmed that wallets sold by CryptoBilis were involved in the draining incident. The company said, "We have not verified a drain linked to a signer bought elsewhere," and added that it is "reviewing reports of implants in other signers and locations."

Ledger is investigating the tampered devices from CryptoBilis. The company noted that CryptoBilis has stopped selling wallets while the investigation continues.

What Remains Unclear

Ledger has not formally linked the other resellers where spyware was discovered to the $86 million drain. While Karpelès reported finding implants in wallets from MediaMarkt, LazMall, and Metapod, Ledger has only officially confirmed the CryptoBilis connection.

Protos has reached out to LazMall for comment and will update this story if a response is received.

Why This Matters

Ledger wallets are among the most popular hardware wallets for storing cryptocurrency. A hardware wallet is a physical device that stores private keys offline, keeping them safe from online hackers. When spyware can record a wallet's recovery phrase, anyone with access to that phrase can drain the funds stored on the device.

The incident highlights the importance of buying hardware wallets from authorized resellers and verifying device integrity before use.

Sources

• Protos