£25,000 Worth Crypto Tokens Stolen From Second Hand Wallet

January 11, 2018 by Cameron Bishop

Second hand electronic gadgets, particularly those store crypto currencies or any other important data, should never be bought without proper advice from specialists. If not, there is every chance of losing invaluable data or money as it happened to a Reddit user (moodyrocket). The man lost £25,000 worth crypto currencies stored in a Ledger brand Nano wallet, bought second-hand on eBay.

According to gadget experts, the second hand wallet seller had used a ‘man in the middle’ (MITM) attack (attacker secretly inserts his own recovery seed instead of a random seed assigned by the manufacturer, and alters the communication) to gain access to the coins.

The reddit post:

“I have not used my Ledger in a week, today I decide to check the value of my XRP, Litecoin and Dash only to discover that all of them showed up as zero and had been transferred somewhere else yesterday all around the same time at 7:30pm. I am not sure how this is possible as I have not access my Ledger in a week. I do not know what do to as the total value is over £25000, has by currency been stolen or is it something else? I am at a lost here and right now feel so physical sick. Some please help.”

Ledger’s CEO (user name: murzika) has asked the wallet user to contact the company by email so that the general counsel can assist in filing a formal criminal complaint and bring the eBay seller to justice. The post indicates the extent to which hackers will go to loot crypto coins from somebody else’s wallet.

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Cameron works tirelessly behind the scenes ensuring his many US news stories are factual, informative and brought to you in a timely fashion before most other media outlets have them. He is an investigative journalist at heart who also has a fond interest in the money and business markets too.

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