Ledger Fake BIP39 Generation Scam - Revision history

Azoundria at 16:36, 14 April 2023

2023-04-14T16:36:14Z

← Older revision		Revision as of 10:36, 14 April 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/ledgerfakebip39generationscam.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/ledgerfakebip39generationscam.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	[[File:Ledger.jpg\|thumb\|Ledger]]A malicious individual was targeting Ledger hardware wallet users on the Ledger subreddit. Allegedly, they were trying to help users, but this help recommended that the users visit a website for BIP39 generation and enter their private key. The service apparently is legitimate, while the link that the scammers sent was to a copy of the site which sent them the private key information. It is unclear if they were successful with any of their attempts.		[[File:Ledger.jpg\|thumb\|Ledger]]A malicious individual was targeting Ledger hardware wallet users on the Ledger subreddit. Allegedly, they were trying to help users, but this help recommended that the users visit a website for BIP39 generation and enter their private key. The service apparently is legitimate, while the link that the scammers sent was to a copy of the site which sent them the private key information. It is unclear if they were successful with any of their attempts.

	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.<ref name="whotookmycrypto-7313" /><ref name="reddit-7504" /><ref name="imgur-7505" /><ref name="iancoleman-7506" /><ref name="iancolemannarchive-7507" /><ref name="ledger-6398" /><ref name="financegates-7300" /><ref name="slashdot-7301" /><ref name="pcmag-6879" />
	<ref name="whotookmycrypto-7313" /><ref name="reddit-7504" /><ref name="imgur-7505" /><ref name="iancoleman-7506" /><ref name="iancolemannarchive-7507" /><ref name="ledger-6398" /><ref name="financegates-7300" /><ref name="slashdot-7301" /><ref name="pcmag-6879" />

	== About Ledger ==		== About Ledger ==
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	!Description		!Description
	\|-		\|-
	\|April 19th, 2018 1:51:03 AM		\|April 19th, 2018 1:51:03 AM MDT
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
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	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
			The seed phrase should never be entered anywhere except the Ledger hardware wallet.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

	== Prevention Policies ==		== Platform Prevention Policies ==
	~~The seed phrase should never be entered anywhere except the Ledger hardware wallet.~~		{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

			{{Prevention:Regulators:End}}

	== References ==		== References ==

Azoundria at 00:35, 19 February 2023

2023-02-19T00:35:20Z

← Older revision		Revision as of 18:35, 18 February 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/ledgerfakebip39generationscam.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/ledgerfakebip39generationscam.php}}
			{{Unattributed Citations}}

	[[File:Ledger.jpg\|thumb\|Ledger]]A malicious individual was targeting Ledger hardware wallet users on the Ledger subreddit. Allegedly, they were trying to help users, but this help recommended that the users visit a website for BIP39 generation and enter their private key. The service apparently is legitimate, while the link that the scammers sent was to a copy of the site which sent them the private key information. It is unclear if they were successful with any of their attempts.		[[File:Ledger.jpg\|thumb\|Ledger]]A malicious individual was targeting Ledger hardware wallet users on the Ledger subreddit. Allegedly, they were trying to help users, but this help recommended that the users visit a website for BIP39 generation and enter their private key. The service apparently is legitimate, while the link that the scammers sent was to a copy of the site which sent them the private key information. It is unclear if they were successful with any of their attempts.

	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.
			<ref name="whotookmycrypto-7313" /><ref name="reddit-7504" /><ref name="imgur-7505" /><ref name="iancoleman-7506" /><ref name="iancolemannarchive-7507" /><ref name="ledger-6398" /><ref name="financegates-7300" /><ref name="slashdot-7301" /><ref name="pcmag-6879" />

	== About Ledger ==		== About Ledger ==
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	Don't Include:		Don't Include:

	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.		* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
	* Anything that wasn't reasonably knowable at the time of the event.		* Anything that wasn't reasonably knowable at the time of the event.
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	\|-		\|-
	\|April 19th, 2018 1:51:03 AM		\|April 19th, 2018 1:51:03 AM
	\|~~First~~ Event		\|Main Event
	\|~~This is an expanded~~ description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
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	== Total Amount Recovered ==		== Total Amount Recovered ==
	~~It is unknown how much was~~ recovered.		There do not appear to have been any funds recovered in this case.

	What funds were recovered? What funds were reimbursed for those affected users?		What funds were recovered? What funds were reimbursed for those affected users?
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	== References ==		== References ==
	[https://whotookmycrypto.com/ledger-wallet-scams/ Nasty Ledger wallet scams. And how to avoid them. - Who Took My Crypto] (Mar 20)		<references><ref name="whotookmycrypto-7313">[https://whotookmycrypto.com/ledger-wallet-scams/ Nasty Ledger wallet scams. And how to avoid them. - Who Took My Crypto] (Mar 20, 2022)</ref>

	[https://www.reddit.com/r/ledgerwallet/comments/8dczgh/be_careful_there_are_scammers_here/ Be careful, there are scammers here. : ledgerwallet] (Mar 28)		<ref name="reddit-7504">[https://www.reddit.com/r/ledgerwallet/comments/8dczgh/be_careful_there_are_scammers_here/ Be careful, there are scammers here. : ledgerwallet] (Mar 28, 2022)</ref>

	[https://i.imgur.com/S2TyqZc.png https://i.imgur.com/S2TyqZc.png] (Mar 29)		<ref name="imgur-7505">[https://i.imgur.com/S2TyqZc.png https://i.imgur.com/S2TyqZc.png] (Mar 29, 2022)</ref>

	[https://iancoleman.io/bip39/ BIP39 - Mnemonic Code] (Mar 29)		<ref name="iancoleman-7506">[https://iancoleman.io/bip39/ BIP39 - Mnemonic Code] (Mar 29, 2022)</ref>

	[https://web.archive.org/web/20180422040137/https://iancolemann.io/bip39/ BIP39 - Mnemonic Code] (Mar 29)		<ref name="iancolemannarchive-7507">[https://web.archive.org/web/20180422040137/https://iancolemann.io/bip39/ BIP39 - Mnemonic Code] (Mar 29, 2022)</ref>

	[https://www.ledger.com/ledger-live Ledger Live : Most trusted & secure crypto wallet \| Ledger] (Feb 13)		<ref name="ledger-6398">[https://www.ledger.com/ledger-live Ledger Live : Most trusted & secure crypto wallet \| Ledger] (Feb 13, 2022)</ref>

	[https://www.financegates.net/2020/12/23/ledger-refuses-refunds-tells-clients-bank-vault-is-more-secure/ Ledger Refuses Refunds, Tells Clients “Bank Vault Is More Secure” \| Financegates] (Mar 19)		<ref name="financegates-7300">[https://www.financegates.net/2020/12/23/ledger-refuses-refunds-tells-clients-bank-vault-is-more-secure/ Ledger Refuses Refunds, Tells Clients “Bank Vault Is More Secure” \| Financegates] (Mar 19, 2022)</ref>

	[https://it.slashdot.org/story/20/12/21/2139218/physical-addresses-of-270k-ledger-owners-leaked-on-hacker-forum Physical Addresses of 270K Ledger Owners Leaked On Hacker Forum - Slashdot] (Mar 19)		<ref name="slashdot-7301">[https://it.slashdot.org/story/20/12/21/2139218/physical-addresses-of-270k-ledger-owners-leaked-on-hacker-forum Physical Addresses of 270K Ledger Owners Leaked On Hacker Forum - Slashdot] (Mar 19, 2022)</ref>

	[https://www.pcmag.com/news/scammers-are-using-fake-devices-to-steal-cryptocurrency-wallets Scammers Are Using Fake Devices to Steal Cryptocurrency Wallets \| PCMag] (Mar 6)		<ref name="pcmag-6879">[https://www.pcmag.com/news/scammers-are-using-fake-devices-to-steal-cryptocurrency-wallets Scammers Are Using Fake Devices to Steal Cryptocurrency Wallets \| PCMag] (Mar 6, 2022)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/ledgerfakebip39generationscam.php}} LedgerA malicious individual was targeting Ledger hardware wallet users on the Ledger subreddit. Allegedly, they were trying to help users, but this help recommended that the users visit a website for BIP39 generation and enter their private key. The service apparently is legitimate, while the link that the scammers sent was to a copy o..."

2023-01-24T21:18:19Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/ledgerfakebip39generationscam.php}} thumb|LedgerA malicious individual was targeting Ledger hardware wallet users on the Ledger subreddit. Allegedly, they were trying to help users, but this help recommended that the users visit a website for BIP39 generation and enter their private key. The service apparently is legitimate, while the link that the scammers sent was to a copy o..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/ledgerfakebip39generationscam.php}}

[[File:Ledger.jpg|thumb|Ledger]]A malicious individual was targeting Ledger hardware wallet users on the Ledger subreddit. Allegedly, they were trying to help users, but this help recommended that the users visit a website for BIP39 generation and enter their private key. The service apparently is legitimate, while the link that the scammers sent was to a copy of the site which sent them the private key information. It is unclear if they were successful with any of their attempts.

This is a global/international case not involving a specific country.

== About Ledger ==
"Based in France, Ledger is the largest cryptocurrency hardware wallet company." "Ledger is a hardware cryptocurrency wallet that is used to store, manage, and sell cryptocurrency. The funds held in these wallets are secured using a 24-word recovery phrase and an optional secret passphrase that only the owner knows."

"Ledger offers two products, the Nano S and Nano X, that can store the digital keys used to secure crypto wallets. The devices can be used with a variety of cryptocurrencies, are compatible with numerous apps, and are supposed to offer a safe way to manage crypto without compromising too much on convenience. Ledger says on its website that it has sold 1.5 million products to customers in 165 countries to date."

"Hi, Sorry for sending as a pm but reddit is always rate limiting pulic messages every other 9 minutes so I had to wait 9 minutes but didn't have time for this."

"You can certainly watch the wallet balance without your ledger plugged in but for this you would need your recovery wordsin order to extract the extended public key."

"You can do this using Ian Colamenan's BIP39 tool like this: (1) Visit the BIP39 tool. (2) Enter your recovery words in the BIP39 Mnemonic box. All words on a single line and a single space between them. (3) Scroll down to Derivation Path. (4) Find the "extended public key". Using that extended public key you'll be able to see the total balance. You can use it on a website like blockchain.info or PC wallet that supports extended public keys."

"The link doesn't go to [iancoleman.io] (which is, ostensibly, legit). It goes to [iancolemann.io]."

"That page sends private keys [to] bip39/verify.php."

"I have half a mind to write a three-line python script to send millions of requests there so he has to verify every single one to see if it's a valid wallet. Not super hard to do automatically, but it would mean more work."

"This guy has already been "active" in this sub and we have collected information about him. He's now banned and we'll see how to proceed further from there."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:

* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - Ledger Fake BIP39 Generation Scam
!Date
!Event
!Description
|-
|April 19th, 2018 1:51:03 AM
|First Event
|This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|-
|
|
|
|}

== Total Amount Lost ==
The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
It is unknown how much was recovered.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
The seed phrase should never be entered anywhere except the Ledger hardware wallet.

== References ==
[https://whotookmycrypto.com/ledger-wallet-scams/ Nasty Ledger wallet scams. And how to avoid them. - Who Took My Crypto] (Mar 20)

[https://www.reddit.com/r/ledgerwallet/comments/8dczgh/be_careful_there_are_scammers_here/ Be careful, there are scammers here. : ledgerwallet] (Mar 28)

[https://i.imgur.com/S2TyqZc.png https://i.imgur.com/S2TyqZc.png] (Mar 29)

[https://iancoleman.io/bip39/ BIP39 - Mnemonic Code] (Mar 29)

[https://web.archive.org/web/20180422040137/https://iancolemann.io/bip39/ BIP39 - Mnemonic Code] (Mar 29)

[https://www.ledger.com/ledger-live Ledger Live : Most trusted & secure crypto wallet | Ledger] (Feb 13)

[https://www.financegates.net/2020/12/23/ledger-refuses-refunds-tells-clients-bank-vault-is-more-secure/ Ledger Refuses Refunds, Tells Clients “Bank Vault Is More Secure” | Financegates] (Mar 19)

[https://it.slashdot.org/story/20/12/21/2139218/physical-addresses-of-270k-ledger-owners-leaked-on-hacker-forum Physical Addresses of 270K Ledger Owners Leaked On Hacker Forum - Slashdot] (Mar 19)

[https://www.pcmag.com/news/scammers-are-using-fake-devices-to-steal-cryptocurrency-wallets Scammers Are Using Fake Devices to Steal Cryptocurrency Wallets | PCMag] (Mar 6)