1. Compromised Ledger Nano X: A Forensic Investigation by Bitreclaim

$214k Lost to a Compromised Ledger Nano X: A Forensic Investigation by Bitreclaim

The promise of cold-storage wallets like the Ledger Nano X has always been security, privacy, and peace of mind. For many crypto holders, these devices represent the last line of defense against hackers, phishing attempts, and malware. But what happens when the hardware wallet itself is compromised — and worse, still passes Ledger’s own “Genuine Check”?

That’s the exact nightmare a recent victim faced when over $214,000 in ETH and TRX was drained from a Ledger Nano X purchased from a fake “Ledger Thailand” store on Lazada. The case exposes critical flaws in supply chain trust, e-commerce impersonation, and highlights why blockchain forensic intervention from experts like Bitreclaim is essential for recovery.

Compromised Ledger Nano X: A Forensic Investigation by Bitreclaim

November 21, 2024 – The victim purchased a brand-new Ledger Nano X from what appeared to be a legitimate store on Lazada, Southeast Asia’s equivalent of Amazon. The store was branded as “Ledger Thailand” and featured polished reviews, creating a convincing illusion of authenticity.

Setup was done correctly:

• Device was sealed.
• Activated via Ledger Live on a MacBook.
• Ran Ledger’s “Genuine Check”, which came back green.
• Firmware updated to the latest version.

At this point, there were no red flags. Ledger Live clearly stated: “Device is genuine and safe to use.”

Seed generation was done not once, but twice: once as a demonstration, and then again, independently, by the owner. Both times the seed was handwritten and securely stored.

January 2025 – The victim began funding the wallet with ETH and TRX. For weeks, nothing appeared unusual. Then suddenly, without warning, all funds vanished. A total of $214,186 was drained.

Best Crypto Asset Recovery Service Providers: Top Firms to Retrieve hacked Ledger

Initial suspicion fell on a possible seed phrase leak — a common cause of wallet compromise. But the circumstances quickly made that theory unlikely after we opened a detailed case with the smart contract audit with American Forensic Firm Bitreclaim:

• The victim generated fresh seeds directly on the device.
• There was no sharing, copying, or photographing of the recovery phrase.
• The device had passed Ledger’s own authenticity test.

The breakthrough came when the victim reviewed the seller. The “Ledger Thailand” Lazada shop was a counterfeit reseller with a fake storefront designed to mimic Ledger’s official partners. Multiple similar shops were discovered, including Thailand Ledger, Secure Vault TH, and Nano Vault, all selling Ledger devices at attractive prices.

This pointed to the likelihood of tampered hardware wallets — modified devices that still somehow pass Ledger’s “Genuine Check”, making them indistinguishable from legitimate units.

Forensic Transaction Tracing

Once the theft occurred, blockchain forensics became the only path forward. Bitreclaim investigators mapped the stolen funds across multiple chains and exchanges.

Victim Wallets

• ETH: 0xb62b5fFF91b1A08B6B303EE40C69eB160C2DeB9E
• TRX: TX9HTqRfkDcRr1uQKmGh2VJv94JVBeStmj

Hacker’s Wallet

• ETH (primary): 0x644Dc17e70A46130203feADfA75C31d49aCddDc1

Key Drain Transactions

• ETH Drain: 0x57a201ef69371fdc4feaf19e57d29a2a2a5e10b32303ff68054d06270343a7ca (8,158 USDT)
• TRX Drain: 7d75e7ce81da3bc98db785607a646b580473b461a8acbf46959454961446bc22 (206,028 USDT)

Laundering Path

• Funds moved from TRX to ETH via OKX Bridge.
• Swapped to BTC through THORChain.
• Briefly held in BTC wallet: bc1p6ytcmqm43hyc54dtlgsqyjrqp9sl42l7vr4mxlm52grzngt8hp7q0ywrup.
• Converted back into ETH and dispersed across multiple wallets.

Frozen Assets

Thanks to quick community reporting and cooperation with r/Tether, two addresses holding $212,000 in USDT were successfully frozen:

• 0xe36D7E24B030FBdb556F12A83bDC85A21aFa3Db3 (63,892 USDT)
• 0x41c3b8b5CfdD29DE2941DaE4A956cc9F057ac767 (148,400 USDT)

This rapid intervention highlights the importance of timely reporting, forensic tracing, and coordinated exchange communication.

Law Enforcement & Escalation

The victim did not stop at blockchain analysis:

• Police reports filed locally.
• Case escalated to a larger cybercrime unit.
• Reports submitted to FBI (IC3) and the Cyber Crime Unit of Israel (victim’s country of citizenship).

These steps ensured that the case is documented as a serious financial crime and increased chances of recovery through legal and regulatory channels.

Lessons from the Case

This incident uncovers serious risks in hardware wallet supply chains and exposes limitations of Ledger’s Genuine Check.

1. Only Buy from Official Sources

Fake “Ledger” shops on platforms like Lazada and Shopee are rampant. Even a sealed box and green Genuine Check do not guarantee authenticity if the device was tampered with at source.

2. Don’t Trust the Genuine Check Alone

Ledger markets this check as proof of authenticity, yet compromised devices still pass. A false sense of security can be devastating.

3. Blockchain Forensics Works

Thanks to forensic mapping, investigators tracked stolen funds across chains and even helped freeze significant portions. Without this, attackers could have laundered the funds entirely.

4. Immediate Action Matters

The faster a victim documents, reports, and escalates, the higher the chance of recovery. Delays allow attackers to disperse funds across mixers and exchanges, making tracing far harder.

How Bitreclaim Helps to File and Open Cases Like This

Bitreclaim specializes in crypto scam recovery, forensic blockchain tracing, and smart contract audits. In this case, our methods would involve:

• Transaction Mapping: Following funds across ETH, TRX, BTC, and bridges to trace laundering patterns.
• Exchange Collaboration: Engaging with OKX, r/Tether, and other platforms to freeze suspicious wallets.
• Legal Coordination: Assisting victims in filing class action in the case of many victims like the IChcoin case
• Forensic Reporting: Creating legally admissible reports for law enforcement and regulators.

This layered approach maximizes recovery potential and ensures scammers are exposed to legal consequences.

Conclusion: Protect Your Crypto

This case is a wake-up call for all crypto holders:

• Never buy hardware wallets from third-party marketplaces. Only use official Ledger stores or verified distributors.
• Understand the risks. A green check in Ledger Live is not an absolute guarantee of safety.
• Act fast if compromised. Time is the most important factor in freezing stolen funds.

At Bitreclaim, we continue to work on cases like this — combining blockchain forensics, cybercrime investigation, and recovery services to help victims reclaim what they’ve lost.

If you or someone you know has been affected by a crypto scam or compromised wallet, reach out to Bitreclaim immediately. Every second counts in tracing and freezing stolen funds.

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