{"id":79414,"date":"2026-10-12T17:59:16","date_gmt":"2026-10-12T17:59:16","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/cryptobilis-founder-reveals-company-was-sold-months-before-exploit\/"},"modified":"2026-10-12T17:59:16","modified_gmt":"2026-10-12T17:59:16","slug":"cryptobilis-founder-reveals-company-was-sold-months-before-exploit","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/cryptobilis-founder-reveals-company-was-sold-months-before-exploit\/","title":{"rendered":"Cryptobilis Founder Reveals Company Was Sold Months Before Exploit"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<p class=\"gflkzy gflkxr gflk7s gflk7r gflk7q gflarr gflkzx gflga1 gflk7l gflk7p\"><strong>Arravind Prabu, founder of Cryptobilis, disclosed that the company had been acquired by an undisclosed party earlier this year. While Prabu acknowledged he assisted the current management team in some events, he denied having any operational visibility into the company\u2019s day-to-day operations.<\/strong><\/p>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Former Cryptobilis CEO Arravind Prabu revealed the company was sold in March 2026 to new ownership.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Prabu stated that since the sale, the founders had no access or control over the company\u2019s operations.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Ledger paused shipments after confirming a tampered device was sold through Cryptobilis, causing millions in losses.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Cryptobilis Founder Discloses Company Sale, Denies Responsibility for Tampered Devices Exploit<\/h2>\n<p>Arravind Prabu, founder of Cryptobilis, the company that allegedly sold the Ledger wallets affected by an ongoing exploit, has provided insight into his involvement with the wallet vendor, distancing himself from the current exploit.<\/p>\n<p>In a <a href=\"https:\/\/www.linkedin.com\/feed\/update\/urn:li:activity:7514372792084152320\/\" target=\"_blank\" rel=\"noopener noreferrer\">statement posted on LinkedIn<\/a> on October 10, Prabu revealed that Cryptobilis was acquired by undisclosed new ownership, with him and another co-founder stepping down and handing over operational and administrative responsibilities to this new party.<\/p>\n<p>Additionally, Prabu clarified that since the sale was completed, he and the other Cryptobilis co-founder have had <strong>\u201czero access, credentials, visibility, or administrative control over Cryptobilis backend systems, customer databases, order histories, or corporate communication channels.\u201d<\/strong><\/p>\n<p>Nonetheless, he recognized that they had a role in assisting the new team in some events <strong>\u201cin an advisory and coordination capacity\u201d<\/strong> to ensure a smooth transition, but denied having any <strong>\u201cbusiness or operational visibility into the company\u2019s day-to-day management or IT infrastructure.\u201d<\/strong><\/p>\n<p>As for the reason he had not disclosed that the sale had happened, Prabu highlighted that he was contractually bound to hold off on issuing public announcements on the transaction until mid-October, but that all suppliers were notified of the transaction and the shift into new management.<\/p>\n<p>Nonetheless, Prabu did not clarify if Ledger hardware stock was included in the operational handover to the new management, and who had access to these devices before each sale.<\/p>\n<p><strong>\u201cFor all active operational matters, technical inquiries, or official statements regarding Cryptobilis, please contact the current lead Person in Charge,\u201d<\/strong> Prabu concluded.<\/p>\n<p>Since Ledger i<a href=\"https:\/\/news.bitcoin.com\/security\/ledger-confirms-hidden-hardware-implant-in-affected-users-wallet\/\">dentified a tampered device<\/a> sourced through Cryptobilis, the company has paused all shipments and sales of Ledger devices, recommending that customers not set up their wallets.<\/p>\n<p>Nonetheless, more tampered devices have reportedly appeared in other regions, sourced from different authorized resellers, expanding the potential scope of this exploit that has already <a href=\"https:\/\/news.bitcoin.com\/security\/ledger-wallet-mystery-deepens-as-suspected-losses-hit-93-4m\/\">caused over 90 million in losses<\/a>.<\/p>\n<p>Ledges is still investigating the issue, and <a href=\"https:\/\/x.com\/Ledger\/status\/2109331538072494364?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">in its latest update<\/a>, it reiterated that all compromised devices were sourced through Cryptobilis.<\/p>\n<p> <!-- --> <\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/security\/cryptobilis-founder-reveals-company-was-sold-months-before-exploit\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Arravind Prabu, founder of Cryptobilis, disclosed that the company had been acquired by an undisclosed party earlier this year. While Prabu acknowledged he assisted the current management team in some events, he denied having any operational visibility into the company\u2019s day-to-day operations. Key Takeaways Former Cryptobilis CEO Arravind [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":79415,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/79414"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=79414"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/79414\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/79415"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=79414"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=79414"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=79414"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}