BREAKING: YOUR BITCOIN WALLET COULD BE COMPROMISED!!! (YOU NEED TO MOVE YOUR BITCOIN) | EP 1610

Nico Moran (0:03)

A new $72 million hack. Well, actually, I've been seeing different reports from 72 million to about 86 million. So it's still ongoing, all right? It's currently affecting the most popular Bitcoin wallet. And this time, it's the 7 million users who use Ledger that are affected. And of course, all of this is happening in the same week that we've seen consistent Bitcoin ETF outflows said by BlackRock and the US government sending billion dollars of Bitcoin to Coinbase. Overall, guys, it's kind of been a rough week. I'm not going to lie. It's been a rough week here as we transition from a bear market to a bull market. The price action's not good. We're seeing a lot of FUD happening right now.

You know, they said hodling Bitcoin would be easy. They said it'd be fun. It's not been fun. And I don't mean to laugh. I really don't. It's more like, you know, I either laugh or I start crying type of scenarios right now. But anyways, enough of that. Let me get into this story here.

So looking at Arkham, actually it's been interesting following along on Arkham because the first report I saw, this number here that it's currently 70.6 million was as high as 86 million. And then literally right before I went live, it was 72 million. And then I refreshed it to see if I would get updated numbers. Now, it looks like it's saying 70.6 million. So again, it's ongoing. We really don't know what's going on. But yes, Ledger users are affected, though it is a pretty narrow attack here. And also it does, they did take more shit coins. Wait, my past, oof, rip. I didn't get past the first two minutes. Let's hope they didn't knock me. It does affect more alt coins than Bitcoin.

But it's another kind of a black eye on the self custody of your Bitcoin. It's been a rough couple of months, guys. Again, we don't have full information yet on what's going on with it. We don't really know if it's another AI kind of exploit. The best kind of read we're getting right now is that it might be a supply chain attack going on with the ledgers through a third seller or third party. So here's Ledger support this morning going, Ledger's investigating reports of loss of funds from users in Southeast Asia who purchased products from a reseller named Cryptobillus. As a precaution and pending the results of our investigation, we have asked Cryptobillus to pause all sales and shipments of Ledger devices. We recommend Ledger users who purchased from this reseller in the last 90 days. Do not initiate set up. And if you haven't done so yet, and if you have set up your Ledger device, consider moving assets to a new Ledger signer with new seed. We will continue to inform customers of updates as the investigation progresses. So it does look as if this is a, I would say a niche attack on, I guess Opti has turned into a short-term trading monitoring when a five-minute price movement timeout.

SPEAKER_2 (3:13)

No, that's the troll, dude, the one-minute chart.

Nico Moran (3:15)

Come on, dude.

SPEAKER_2 (3:17)

We're talking about a hack here, okay?

Nico Moran (3:19)

Anyways, it looks like this is a very narrow attack here. Again, it looks like it was a third-party reseller. That is the issues. Again, we're not giving crypto billers, we're not saying they are the ones, at least as far as we know right now, that have activated this exploit.

But it looks as if you bought from this Southeast Asian ledger reseller, you are probably vulnerable right now. Again, 72 million. It's not the 100, what? 30 million plus that we saw with the cold card exploit, but it is another, again, black eye on the self-custody space. The majority of the coin that was stolen from this ledger, again, is Ethereum and Tron and some Tether.

Part of it was Bitcoin that is being stolen right now. So I did see this breakdown here from TFTC right before I went live. And it goes again, ledgers investigating reports that users in Southeast Asia. I don't know if we even have that many Southeast Asian viewers here, but nonetheless, I feel as if, you know, I got to report this for you guys out there that are watching who may not be in tune with all of the information out there. But again, who bought devices from a reseller called Cryptobillus have had their funds drained. So this is where it gets a little interesting. Again, the Arkham Tracker, saying right now 70.6, but I've seen reports as high as 86 million. And here TFTC is saying, excuse me guys, on-chain investigator Spectre trace roughly $87 million in losses across 98 wallet addresses on Ethereum, Tron and Bitcoin. Breakdowns about $42 million at ETH were stolen, $17.6 million in Bitcoin, and about $16.5 million in Tether. Ledger has asked Crypto Bellis again, as we just read, to pause all sales and shipments. Anyone who bought from the reseller in the past 90 days is being told not to set up their device. Again, if you did buy it from them, I would argue that you need to send it to a different Bitcoin wallet. Okay, this is where, again, we don't know exactly, this is ongoing. This was just reported this morning, so we don't have all the information that we had the last time we saw an exploit, but we haven't been able to pinpoint the cause. It doesn't seem to be a Ledger-wide exploit, but potentially, who knows? The leading theory, though, is that devices may have been shipped with recovery phrases the attacker already knew, which is kind of interesting and suspicious. I did see Mark Karpelis, an OG Bitcoiner, essentially saying that it might be a supply chain attack also, that maybe there's some way that they've been able to tamper with the devices before they were sold. Again, not saying that Cryptobillus is the culprit here, but we're still trying to figure out exactly what's going on, all right? So, again, since, what was it, in August, a few months ago, we've obviously, in the self-custody space, have, it's been rough, I'm not gonna lie. It's been a rough couple of months. Obviously, the price action in this week has been rough too. There's been a lot of flood lines going on as we transition from a bear market to a bull market.