Ledger Wallet Cleaned Out netecholot

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Ledger

Reddit user netecholot reports that their funds were taken, and that their seed phrase wasn't given away. Limited detail is available, but cases like this typically end up being the result of the seed phrase being compromised in some manner. Only $3k worth of funds were lost in this case. While they reportedly were going to reach out to investigate where the funds went, there is no further information to suggest anything was uncovered or recovered.

The country for this case study is not yet known.

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." · "My Ledger S has been cleared out clean by someone." "[G]ot taken on July 2. Both Ether and BTC." "In the same boat here. Sorry but makes me feel a little better knowing I am not crazy and seems like there is a problem out there."

"No my mnemonic phrase have not been given away." "Customer service at Ledger understandably told me that it has to be the case that I have given the phrase away as anything else is impossible. They have made sure that device is genuine and it is, as was purchased directly from them."

"Wondering if there is a service that can be hired to investigate where the funds are now."

"I was thinking more along the line to investigate if any of the coins made it to the one of the exchanges." "Will look into coinfirm."

"Whoever got my f[u]nds, soon or later it will catch-up with them."

The country for this case study is not yet known.

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.

Key Event Timeline - Ledger Wallet Cleaned Out netecholot
Date	Event	Description
July 4th, 2020 8:07:32 PM	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?