In what many are calling a case of poetic justice, blockchain analysts report that one of the largest victims of a recent Ledger theft incident was a scammer who lost nearly $5 million in bitcoin.
Blockchain firm Chainalysis revealed in a Thursday post that a thief lost 60 bitcoins—valued at approximately $4.8 million—that had originally been stolen through a task scam.
The address in question was connected to a fraudulent scheme where victims were paid to generate fake sales and product reviews. Participants were instructed to deposit their own funds in order to receive payouts, only to have their money stolen.
However, the mastermind behind the task scam subsequently transferred the stolen assets into Ledger addresses that were later compromised by a different group of thieves.
“On Sep 22, the person behind the scam moved the proceeds into three separate Ledger addresses,” Chainalysis stated. “On Oct 9, thieves emptied all three. One transfer each, into the same wallet. The wallet is reported as stolen funds.”
Paris-based Ledger announced last week that it launched an investigation after customers in Southeast Asia reported stolen funds following purchases from the Malaysia-based reseller CryptoBilis.
Ledger later explained that the incident stemmed from a large-scale organized crime operation involving hardware implants placed inside devices before they were returned to the market. These hidden implants captured users’ seed phrases, enabling criminals to drain the wallets.
Describing the event as one of the most “sophisticated attacks” in the history of the digital asset industry, Ledger has not yet disclosed the total amount lost. Nevertheless, blockchain investigator Specter estimates that $86 million has been drained.
Chainalysis confirmed that the task scam operator was among those affected.
Ledger stated it is collaborating with law enforcement to “follow the funds and dismantle the attackers’ infrastructure” and confirmed that no other vendors were compromised.
CryptoBilis has since halted the sale of Ledger items, according to the company.
Hardware wallet vendors have faced multiple criminal schemes this year, including a major security breach in July affecting popular Coldcard products.
During the Coldcard incident, hackers stole nearly $120 million in bitcoin due to a firmware flaw that created faulty seed generation, allowing attackers to guess investor seed phrases.
FAQ
Who was one of the biggest victims of the Ledger theft?
According to blockchain analysts at Chainalysis, one of the largest victims was a scammer who lost nearly $5 million in bitcoin.
How much money did the scammer lose?
The scammer lost over 60 bitcoins, valued at approximately $4.8 million, which had been acquired through a task scam.
How did the Ledger breach happen?
Ledger stated that criminals inserted physical implants into hardware devices before putting them back on the market, allowing them to read users’ seed phrases and drain their wallets.
How much total money was estimated to be drained in the Ledger attack?
While Ledger has not yet revealed the exact total, blockchain investigator Specter estimated that $86 million was drained.
What other hardware wallet was targeted by hackers earlier this year?
In July, popular Coldcard products suffered a major attack where hackers stole close to $120 million in bitcoin due to a firmware bug.
