About $3.5 million lost in S’pore due to tampered Ledger crypto hardware wallets

SINGAPORE – Victims have lost about $3.5 million after buying tampered cryptocurrency hardware wallets at Singapore stores.

In a statement on Oct 28, the police said two cases involving hardware wallets by Paris-based manufacturer Ledger have been reported since Sept 10.

A hardware wallet is a physical device that stores private keys offline, making them more secure than storing the keys online, where they are vulnerable to hacking.

Preliminary investigations revealed that Ledger devices that were bought at certain retail stores in Singapore contained malicious hardware components.

The police said the malicious hardware components in the Ledger devices are able to capture users’ recovery phrases or private keys.

This may allow unauthorised individuals to access users’ cryptocurrency wallets and transfer their assets without their knowledge or consent.

The police added that they are in contact with Ledger, which is reviewing the affected cases.

Investigations are ongoing.

On Oct 14, The Straits Times reported that Ledger had suspended sales across South-east Asia after discovering that some of its devices had been tampered with to steal user funds.

The sales suspension covers Singapore, Malaysia, Indonesia, Thailand, the Philippines, Vietnam and Hong Kong.

According to blockchain analysts, losses are estimated at more than US$86 million (S$110 million), although Ledger said it could not confirm the number of people affected or the total amount lost.

Police, meanwhile, urged the public to be cautious when holding or transacting cryptocurrencies.

They are advised to stay updated and refer to official advisories by hardware wallet providers; take appropriate steps to safeguard their devices; and never disclose their private keys, recovery or seed phrases.

Members of the public who have any information on such crimes can call the police hotline on 1800-255-0000, or submit it online at www.police.gov.sg/i-witness

For more information on scams, members of the public may also call the 24-hour ScamShield Helpline on 1799 or visit www.scamshield.gov.sg