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Scammer loses $4.8M stored on tampered Ledgers: Asia Express
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A scammer lost about $4.8 million in stolen crypto after buying three tampered Ledger hardware wallets, according to Chainalysis. The devices contained spyware that recorded seed phrases, allowing thieves to drain 60 Bitcoin from the scammer’s wallets. All three wallets were emptied into the same address. The case is notable because the victim was reportedly running a “task scam” that paid people to fake sales and reviews of real products.
The loss emerged amid a broader Ledger supply chain scandal. Ledger suspended its reseller network across Southeast Asia after thieves stole more than $103.4 million from 530 addresses using tampered devices inserted into the supply chain. The company insists all confirmed thefts so far are in Asia, despite reports of tampered Ledgers in Europe that led MediaMarkt to suspend sales. Ledger has asked resellers in Indonesia, Singapore, Thailand, the Philippines, Vietnam, Malaysia and Hong Kong to remove its devices from sale.
Chainalysis said the scammer’s operation involved a “negative balance” tactic. Participants were told to add their own money to get paid, meaning some victims may not have been entirely honest either. “In crypto it’s sometimes turtles all the way down,” the firm observed. The episode illustrates how hardware wallet supply chain attacks can reach even those operating outside the law.
Trezor also decided to shutter some far-flung resellers from Jan. 1 because it cannot guarantee the same vigilance as with closer partners. No tampered Trezors have been reported. Meanwhile, Ledger used the moment to launch Atom, an $849 device combining a crypto wallet with Android apps kept separate from sensitive operations. Ledger claims Atom can block the implants used in the Asian thefts and detect tampering even when switched off.
In South Korea, authorities approved measures to block domestic access to 27 websites operated by unregistered crypto exchanges and other virtual asset service providers. The Financial Intelligence Unit listed KuCoin, MEXC, Phemex, Bitrue, CoinW, BTCC, BitMart, BingX and DigiFinex among others. The FIU said blocking measures against illegal virtual asset operators will now apply to websites, following earlier restrictions on apps from Apple and Google.
South Korea also plans a cybersecurity overhaul after a review of incidents at 16 companies, including crypto exchanges, found serious holes. The Financial Services Commission said it will pursue improved threat monitoring, more frequent security assessments and stronger accountability for executives. An industry-wide review found cybersecurity deficiencies at 130 of 555 financial companies. Separately, Jeonbuk Bank reportedly began offering Bitcoin-backed loans to corporate customers, with a third-party custodian holding the collateral.
In Thailand, the Securities and Exchange Commission finalized rules effective Friday that allow crypto exchange-traded funds, with Bitcoin and Ether ETFs launching trading. The developments show Asia taking a dual approach: expanding regulated crypto products while tightening oversight of unregistered platforms and weak cybersecurity. For hardware wallet users, the Ledger case remains a warning that tampering can occur before devices reach buyers. Regulators and wallet makers are likely to face continued pressure to secure distribution chains and protect investors.
