A cryptocurrency scammer who accumulated millions through fraudulent online job offers has lost more than $4.9 million in bitcoin after falling victim to compromised hardware wallets.
Blockchain analytics firm Chainalysis reported that the perpetrator collected the funds by running a task scam that lured victims with fake product reviews before demanding deposits to unlock accounts.
According to Chainalysis, the operator transferred the proceeds of the illicit scheme to three Ledger wallet addresses that attackers subsequently emptied of 60 bitcoin. The theft stemmed from Ledger devices distributed by Southeast Asian reseller CryptoBilis, which investigators found contained unauthorized hardware implants designed to transmit wallet recovery keys over a mobile network.
The breach exposes vulnerabilities within the hardware wallet supply chain and highlights physical tampering risks for cold storage devices.
Investigators have not identified the perpetrators who drained the scammer's wallets.