Ledger User Claims Losing $2.5M In Bitcoin & NFTs – What Went Wrong?

Ledger,
a
company
that
makes
physical
cryptocurrency
and
non-fungible
token
wallets
that
look
similar
to
USB
drives
or
other
storage
devices,
has
been
scrutinized
by
the
crypto
and
NFT
communities
after
a
crypto
user
claimed
to
have
lost
over
$2.5
million
worth
of
Bitcoin
and
NFTs.
In
this
article,
we
shall
explore
in
depth
what
exactly
caused
this
massive
loss.

Ledger
User
Claims
Losing
$2.5M
In
BTC
And
NFTs

In
a
December
13
blog
post,
a
crypto
user
identified
as
@anchor_drops
on
X
(formerly
Twitter)
alleged
losing
$2.5
million
in
digital
assets
stored
on
a
Ledger
Nano
S
hardware
wallet,
including
10
Bitcoin
valued
at
$1
million
and
$1.5
million
worth
of
NFTs.
This
unverified
report
has
stirred
a
heated
debate
on
X,
with
many
Ledger
hardware
wallet
users
coming
out
to
defend
their
wallet
provider.

Hey

@ledger
tonight
I
lost
10
BTC
and
~1.5m
of
NFTs
stored
on
my
ledger
Nano
S

The
ledger
was
purchased
directly
from
you.
The
seed
phrase
was
stored
in
a
secure
location,
never
entered
anywhere
online.
I
never
signed
any
malicious
transactions.
Everything
is
in
my
physical…

—
Anchor
Drops
(@anchor_drops)

December
13,
2024

Launched
in
2014,
Ledger
is
a
crypto
and
non-fungible
token
hardware
wallet
creator
renowned
for
offering
one
of
the
most
secure
hardware
wallets.
The
company’s
hardware
crypto
wallets
are
multicurrency
wallets
that
store
private
keys
for
NFTs
and
cryptocurrencies
offline.
Ledger
is
renowned
for
its
three
hardware
wallets:
the
Ledger
Nano
S
Plus,
the
Ledger
Nano
X,
and
the
Ledger
Stax.

Ledger
is
focused
on
creating
crypto
and
NFT
hardware
wallets
that
are
safe
and
secure
for
use
with
digital
assets.
It
requires
crypto
and
non-fungible
token
holders
to
use
private
keys
to
access
their
digital
assets.
These
private
keys,
which
feature
long
alphanumeric
strings
of
numbers,
protect
users
from
thieves
and
hackers.
Ledger
offers
two
hardware
wallets:
cold
and
non-custodial.

To
make
its
hardware
more
secure,
the
hardware
crypto
wallet
creator
has
fitted
all
products
with
a
secure
element
and
a
proprietary
security
operating
system
designed
to
protect
a
user’s
crypto
and
NFT
assets.
The
security
system
generates
a
24-word,
96-character
backup
recovery
phrase
for
users
to
access
their
crypto
and
NFT
if
the
device
is
lost
or
stolen.
Under
these
tight
security
measures,
what
went
wrong?

What
Went
Wrong?

The
crypto
community
has
raised
eyebrows,
with
more
users
suggesting
that
there
might
be
more
details
to
the
story.
Some
community
members
on
X
have
suspected
that
the
loss
might
have
been
caused
by
human
error
rather
than
a
bug
in
Ledger’s
security
systems.
In
the
same
context,
a
community
member
has
said
that
if
this
type
of
incident
was
a
Ledger
flaw,
many
crypto
holders
would
have
lost
their
funds
and
reported
the
matter.
The
Ledger
team
has
responded
to
this
claim
and
promised
to
help
Anchor
Drops.

Losing
funds
and
NFTs
is
an
incredibly
distressing
experience,
let
us
share
a
few
things
that
we
hope
can
be
of
help.

First,
it’s
important
to
clarify
that
Ledger’s
security
model
is
designed
to
ensure
that
private
keys
are
generated
and
stored
securely
within
the
Secure
Element…

—
Ledger
(@Ledger)

December
13,
2024

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