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HomeCrypto NewsMarketInvestor Loses Thousands of XRP from Ledger Wallet: Details

Investor Loses Thousands of XRP from Ledger Wallet: Details


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An anonymous XRP investor narrates how she lost thousands of XRP from her Ledger wallet, but revelations suggest it might have been due to a purchase from a third party reseller.

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In a recent YouTube video, a female anonymous XRP investor shared her harrowing experience of losing thousands of XRP from her Ledger wallet. However, further confirmations suggest the problem might have been from a third party reseller.

She began by expressing her hesitation to talk about cryptocurrencies on her channel but felt compelled to share her encounter.

She revealed that her Ledger wallet, which she considered secure and never shared her seed phrase with anyone, was hacked, leading to the loss of thousands of XRP tokens.

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Initial Red Flags

Approximately two weeks before making the video, the investor noticed something amiss when she attempted to check her Ledger wallet’s balance.

Surprisingly, she found only 10 XRP in her wallet instead of the substantial amount she had originally held. Concerned, she promptly contacted Ledger’s support team to address the issue.

Despite expressing her doubts about the hacking incident, the Ledger support team initially downplayed her concerns, suggesting it might be a synchronization or update problem. The investor followed their instructions but was not convinced this was the real issue.

The Critical Moment

During this process, the investor’s suspicion grew when the Ledger device immediately prompted her for her PIN code, signaling a potential security breach. Following the protocol, she returned the Ledger device and received a replacement, but her worries persisted.

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Upon connecting the new Ledger device to her laptop, the investor was faced with a shocking sight.

Instead of her XRP holdings, she saw thousands of XRP tokens transferred to an unfamiliar wallet. Realizing that her assets had been stolen, she immediately contacted Ledger support again to report the theft.

In her video, the investor passionately warned her viewers about the risks associated with using Ledger wallets, alleging that they were not as secure as widely believed.

She emphasized the significance of safeguarding the seed phrase and not sharing it with anyone to maintain control over crypto assets.

“I want to warn you, Ledger is not safe,” she alleged. Ledger has not issued any statement on the matter at reporting time, and efforts at reaching them have proven futile. 

She announced her intention to file a police report and involve cybercrime experts to investigate the incident. She also held Ledger accountable.

Recall that Ledger came under fire in May for its seed recovery service, which suggested that customers’ seed phrases were backed up. This service triggered concerns, as investors voiced apprehensions that backing up seed phrases implies they could fall into the wrong hands.

Possible Cause

Despite these issues, Ledger wallet has a proven track record of robust security protocols, with few incidences of hacks or thefts often attributed to customers’ shortcomings.

In this case, the cause of the issue might have been due to the fact that the investor purchased her Ledger wallet from a third party. She disclosed in a subsequent video that she bought the wallet from a third party reseller with which she has been doing business for over a decade.

She further noted that the reseller confirmed that the Ledger wallet came as a new product from Ledger themselves, and had not been tampered with. However, it is difficult to confirm these claims.

As a result, industry leaders have always cautioned against purchasing Ledger wallets from third party due to the risks involved. Investors are are advised to purchase their cold storage wallets, including Ledger, from the companies themselves.

Growing Concerns Among XRP Investors

The latest event is one of numerous cases involving hacks within the cryptocurrency space. The XRP community has had its fair share of these occurrences. The recent Atomic Wallet hack resulted in the loss of over 22 million XRP tokens moved on the XRP Ledger.

Prominent individuals in the community have also fallen victim to social media hacks, as bad actors attempt to leverage their social accounts to deceive unsuspecting XRP investors. Pro-XRP attorneys John Deaton and Jeremy Hogan were two of the latest victims.

Note: Due to a newly-released follow-up video, this article was updated at 4:55 (UTC) on August 8 to reflect the fact that the investor purchased her Ledger wallet from a third party reseller.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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