$25 000 USD

AUGUST 2020

GLOBAL

LEDGER

DESCRIPTION OF EVENTS

"Based in France, Ledger is the largest cryptocurrency hardware wallet company." "Ledger is a hardware cryptocurrency wallet that is used to store, manage, and sell cryptocurrency. The funds held in these wallets are secured using a 24-word recovery phrase and an optional secret passphrase that only the owner knows."

 

"Ledger offers two products, the Nano S and Nano X, that can store the digital keys used to secure crypto wallets. The devices can be used with a variety of cryptocurrencies, are compatible with numerous apps, and are supposed to offer a safe way to manage crypto without compromising too much on convenience. Ledger says on its website that it has sold 1.5 million products to customers in 165 countries to date."

 

"I purchased L[e]dger Nano S from Registered vendor here in South Africa nearly 3 years ago. The company is called BITMART and the first and original Bitcoin hardware reseller in South Africa."

 

"Kept [the seed phrase] in [a] safe. No one could have taken it or used it, it is still there and I am only one with safe access."

 

"Clicked on link directly on my ledger live which I have used for nearly 3 years. No Playstore."

 

"I presume seed means the 20 phrases that I had to write down from the ledgers small screan, when I first started the Ledger Nano S nearly 3 years ago. If that is what you mean...then NO definitely not a photo!" "I did not type in 24 word phrase on pc or anywhere else for that matter. I update ledger live from the ledger live which I have had now for more than 2 years."

 

"I wanted to check the amount of UTRUST coins in my wallet as I saw the price went up considerably. I purchased them during ICO. On 16 August 2020, I could not enter myetherwallet as this annoying "Windows Security scan" popup kept on blocking my ledger. I read FAQ on ledger support which suggested I update Ledger live on PC. I clicked on blue button directly in ledger live to update it and followed the prompts. I still could not enter ledger wallet on Myetherwallet and Ledger support suggested I update the Ledger Nano S' firmware from Ledger Live as well. I did that and to my amazement all my "STARRED ACCOUNTS" on my ledger live profile was hacked 30min later. The other ERC20 coins still there tho, but worth about $500."

 

"[The blockchain] shows the transactions (their dates and times) when the coins just magically were sent by someone other than me."

 

"I honestly don't know what you mean with key security practice (English not my first language), but this is what I did regarding security: I kept ledger with original key written down on paper that came with box of ledger and stored it in my safe. That is literally it. Enough said. No one knows the ledger pin, not even my wife."

 

"With this COVID-19 thing, my wife lost her Salon, her income as well as all our savings in the bank, so YES...LITERALLY OUR FINAL LIFE SAVINGS GONE! The plan was to sell some of the crypto at the end of September to pay a few bills and keep the 1 business we have left afloat. Transparency enough?"

 

"I bought the NANO S 3 years ago and had quite a lot of crypto on it. It was stored safely in my SAFE with the original 24 word written down safely as well."

 

"I logged in 30min ago and to the shock of my life...ALL MY CRYPTO IS GONE!!! Someone took everything on 17 August 2020."

 

"How is this even possible? What to do? Please help, all my life savings gone just like that..."

 

"How do actually contact Ledger support via telephone or email? What can I do in this situation?"

 

"Please help, this is my first post on Reddit ever as I am clueless on what to do..."

 

"In ledger live you have your asset allocation on your profile which still show a few coins with their unchanged amounts."

 

"I added BTC, ETH and UTK at accounts for transfers and it then falls under starred accounts on your home page on ledger live as quick links and valuation for those starred accounts."

 

"The transaction dates and times are clearly shown. I posted the links at the start of the thread."

 

"[T]he only possible explanation is that the mnemonic was compromised somehow."

 

"I came across "COINFIRM" who partnered with coinbase after their 2019 hack, to try and recover my stolen crypto. They apparently do this kind of thing and even crypto sent to the wrong address. The fee is a portion of the recovered funds. This Crypto hack was worth +- $25000. I live in South Africa, and with the exchange rate is a crap load of money. Nearly half a million, so I have enothing else to lose but to try. These days all established exchanges have to do KYC process if I am not mistaken, so I pray that hopefully I can get everything back!"

Reddit user RamboRiki had $25k worth of cryptocurrency stolen from their Ledger hardware wallet. They swear that their seed phrase was uniquely generated and remained stored securely in a safe at their home. They had mentioned a plan to reach out to Coinfirm for assistance in recovery, however no further updates are available on this case.

HOW COULD THIS HAVE BEEN PREVENTED?

This is almost certainly an issue with a compromised seed phrase, while the exact mechanism is unclear. Seed phrases should never be entered anywhere except the physical Ledger device.

 

Check Our Framework For Safe Secure Exchange Platforms

Sources And Further Reading

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