Scammer Loses $4.8 Million in Stolen Funds via Tampered Ledgers

A crypto scammer reportedly lost $4.8 million in stolen funds after storing the assets on tampered hardware wallets, according to blockchain monitoring firm Chainalysis. The incident highlights a broader supply chain attack involving compromised devices.

Supply Chain Attack and Losses

According to Chainalysis, the scammer lost 60 Bitcoin, valued at approximately $4.8 million, from three newly purchased Ledger wallets containing spyware designed to record seed phrases. The thieves responsible for the tampered devices drained all three funds into the same wallet.

The compromised devices are part of a wider security breach that forced Ledger to suspend its reseller network across Southeast Asia this week. Thieves reportedly stole more than $103.4 million from 530 addresses using the tampered Ledgers inserted into the supply chain.

Background on the Scammer

Reports indicate that the affected individual operated a "task scam," where participants were paid to fake sales and reviews of real items before being told to add their own money to receive payments. Ledger has asked resellers in Indonesia, Singapore, Thailand, the Philippines, Vietnam, Malaysia, and Hong Kong to remove its devices from sale as investigations continue.

Key facts

• Chainalysis reported that a scammer lost 60 Bitcoin worth about $4.8 million.
• Funds were stolen from three newly purchased Ledger devices containing seed-phrase-recording spyware.
• Ledger suspended its reseller network across Southeast Asia following thefts totaling more than $103.4 million across 530 addresses.
• The affected individual previously operated a task-based scam operation.