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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