Trader Loses $6.6 Million Bitcoin After Using New Ledger

A Costly Loss in the Hardware Wallet Space

A crypto trader recently lost 80 BitcoinBTC+2.32%, worth roughly $6.6 million, in a single transaction. The funds were drained just ten days after being transferred to a brand-new Ledger hardware wallet.

Hardware wallets are offline devices designed to keep digital assets safe from online hackers. However, this sudden loss has raised serious security questions across the crypto community.

The Timeline Behind the Lost Bitcoin

According to data from blockchain analytics account Lookonchain, the trader purchased the 80 Bitcoin about four months ago. At the time, Bitcoin was trading around $65,000, making the total purchase price roughly $5.2 million.

Public records on mempool show the trader moved all 80 coins into the new Ledger wallet on September 29. By early October, with Bitcoin trading above $83,000, the trader held an unrealized profit of about $1.38 million.

Past performance of digital assets is no guarantee of future results. You can track real-time asset prices on Bitkub Market.

Unfortunately, the entire balance left the wallet in a single transfer at 05:54 UTC on October 9. In an instant, the trader lost the entire investment.

How Ledger and Resellers Responded

Lookonchain reported that the trader bought the hardware wallet from CryptoBilis, a reseller operating in Southeast Asia. Shortly after learning about the incident, Ledger asked CryptoBilis to pause all sales immediately.

Ledger also advised recent buyers of devices from this reseller not to set up or use their wallets while an official investigation takes place.

Hours after the theft, Ledger told that Southeast Asian reseller to halt sales while it investigates lost funds.

As of now, Ledger has not stated whether the hardware devices were physically tampered with before reaching customers or if another vulnerability caused the breach.

Estimating the Scope of Total Market Losses

This individual loss appears to be part of a broader security event. The transaction block containing the trader's funds included at least six other massive transfers sent to addresses linked to the same drainer.

Security analysts are actively trying to determine the total financial impact of the event:

• Arkham estimates total losses from the incident exceed $80 million, though the root cause remains unconfirmed.
• MistTrack, a tracking service by security firm SlowMist, suggests total losses could approach $90 million.

In response to the exploit, stablecoin issuer TetherUSDT-0.18% stepped in to assist. MistTrack reported that Tether actively froze significant amounts of USDT held in wallet addresses tied to the theft.

Hardware Wallet Security Risks in Crypto

While hardware wallets are generally considered safer than hot wallets, they are not entirely free from risk. Supply chain tampering or firmware bugs can create unexpected vectors for loss.

For example, earlier this year in August, a firmware bug affecting Coldcard wallets allowed attackers to drain approximately $70 million in Bitcoin.

Security experts recommend purchasing hardware wallets directly from official manufacturers rather than third-party resellers. Ledger announced it will share further details as its team progresses through the ongoing investigation.