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Ledger CryptoBilis Reseller Compromise
Ledger advises recent CryptoBilis customers to secure assets as reports of tampered devices and multi-million dollar losses emerge.
Happy Friday, October 9, 2026.
Ledger is investigating hardware wallets sold by its reseller CryptoBilis. Credifi is using zkTLS to verify borrowers’ credit scores. And New York bans Alex Mashinsky from the crypto industry.
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Ledger CryptoBilis Reseller Compromise
CryptoBilis, a Southeast Asia based reseller of Ledger hardware wallets, is suspected of selling compromised devices that have been physically altered. Ledger said it is investigating reports and has asked CryptoBilis to pause sales and shipment. Ledger customers who bought devices from the reseller are advised not to set them up and to consider moving assets to a new Ledger signer with a new seed.
The advisory applies to CryptoBilis customers, not all Ledger users. A community member posted images of a Ledger Nano X he said he bought in Malaysia, showing what he described as a concealed antenna and SIM implant. On-chain investigators estimate losses above $86 million across hundreds of wallets and multiple chains.
CryptoBilis’ former co-founders, Arravind Prabu and Vimalatheethan, said they completed an operational handover in March 2026 and no longer have access to the company’s systems or management. The company was acquired by a Chinese national earlier this year. Security researcher Taylor Vano says the onchain transactions appear to be attributed to Chinese individuals.
Credifi Adds zkTLS Credit Checks
Credifi, a lending protocol for uncollateralized USDC loans, launched an iOS app and Chrome extension that use zkTLS to verify credit scores from Experian, NerdWallet, and Credit Karma. The company says borrowers can prove their scores are authentic and untampered, allowing Credifi to reserve more expensive credit-report and bank-statement checks for applicants who qualify for further underwriting.
Credifi estimates underwriting and verification cost $50 to $80 per funded loan, adding roughly 3 to 19 APR points on a three-month loan. The new zkTLS screening is separate from Credifi's launch of USDC micro-loans on Base for borrowers with an Ethos score of at least 1,800, which offered loans of up to $3,000 without KYC.
NY Bans Alex Mashinsky From Crypto
New York Attorney General Letitia James secured up to $35 million in conditional payments from former Celsius CEO Alex Mashinsky, following a lawsuit over misleading hundreds of thousands of investors about the platform’s safety and investment risks. As part of the plea deal, Mashinsky is banned from participating in the securities, commodities and cryptocurrency industries.
New York will receive $25 million if Mashinsky fails to forfeit $10 million in ill-gotten gains to the federal government, plus another $10 million if he does not serve his full 12-year federal sentence. The state’s case accused Mashinsky of portraying Celsius as a safe place to deposit digital assets while the company made risky investments and concealed losses.
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