Hardware wallets are the safest means of storing bitcoin and alts. However one British man who purchased a Ledger Nano S on Ebay lost all of his coins.
Redditor moodyrocket lost $34,000 in crypto that were stored on his newly acquired Ledger Nano S hardware wallet. the Ledger is the best hardware wallet in the market, so how did this happen?
Man in the Middle atack
The Ledger Nano S was compromised not because of flaws in its design, but because of a man in the middle attack – the reseller already setup the wallet and inserted his own recovery seed.
The buyer then used the wallet with the seller seed, instead of a new seed randomly assigned by the manufacturer on setup.
After a couple of weeks he checked his wallet, and found that all of his coins were stolen and transferred to a different address.
After sharing his story on Reddit Ledger representatives contacted moodyrocket and encouraged him to report the crime to bring the eBay seller to justice.
this is the fraudulent documentation that the seller sent. it should be clear that the Ledger box does not contain this sheet of scratch paper. The seed is generated by the device on the setup process.
*** We recommend NEVER buy a Ledger Nano S or any other hardware wallet from eBay or a private person – only from the official store here ***
Remember that it’s not safe to leave large sums of money on any cryptocurrency exchange. That means you are leaving your money in someone else’s wallet. The best choice is a hardware wallet such as Trezor or Ledger. Click here to read our Guide to Bitcoin and Altcoins wallets 2019.