Ledger Hack: Scammer Loses $5M in Bitcoin to Follow-On Theft

Scammer Targeted in Ledger Hack Loses $5M in Bitcoin

A perpetrator of a prior cryptocurrency scam lost roughly $4.8 million worth of Bitcoin (60 BTC) after becoming a victim of the recent security breach affecting Ledger hardware wallet users, according to Chainalysis. The individual had previously profited from a 'task scam' involving fake online sales and reviews.

Chainalysis reports the scammer moved the illicit funds into Ledger addresses on September 22nd. These addresses were subsequently compromised during the widespread theft that began October 9th, with all funds transferred to a single wallet identified as holding stolen funds.

Ledger Investigates Sophisticated Attack

The Ledger breach, initially reported in Southeast Asia, stemmed from compromised devices sold through a Malaysian reseller, CryptoBilis. Ledger has characterized the attack as a highly organized operation involving the installation of implants on devices to extract users’ seed phrases, enabling criminals to drain wallets. While Ledger hasn’t disclosed the total amount stolen, blockchain investigator Specter estimates losses at $86 million.

Ledger is collaborating with law enforcement to trace the stolen funds and dismantle the attackers’ infrastructure. CryptoBilis has ceased selling Ledger products. This incident follows a similar attack in July targeting Coldcard wallets, resulting in approximately $120 million in stolen Bitcoin due to a firmware vulnerability.

Source: Bitcoin Magazine