Bitcoin Beware: The Tale of the Deceptive Ledger Live

Approximately $600,000 worth of Bitcoin (BTC), with a ticker currently showing a value of $35,150, has been illicitly obtained by individuals who installed a fraudulent version of the Ledger Live application from Microsoft's app store. This disturbing revelation was made by cryptocurrency investigator ZachXBT.

The on-chain analyst discovered a deceptive app called "Ledger Live Web3" on November 5th, which dupes unsuspecting users into believing they are acquiring the legitimate "Ledger Live." This application serves as a user interface for Ledger hardware wallets designed to securely store cryptocurrency offline. It's worth noting that the cryptocurrency market can be quite treacherous, and users must remain vigilant in protecting their digital assets.

An estimated 16.8 BTC, equivalent to $588,000, has flowed into the scammer's possession through 38 separate transactions utilizing the wallet address "bc1q....y64q," as confirmed by Blockchain.com. A sum of approximately $115,200 has been transferred out of the scammer's wallet in two transactions, ultimately leaving them with $473,800 or 13.5 BTC.

Community Alert: There is currently a fake @Ledger Live app on the official @Microsoft App Store which was resulted in 16.8+ BTC ($588K) stolen

Scammer address
bc1qg05gw43elzqxqnll8vs8x47ukkhudwyncxy64q pic.twitter.com/rOZ0ZWRWbn

— ZachXBT (@zachxbt) November 5, 2023

In a subsequent update, ZachXBT noted that Microsoft may have removed the counterfeit Ledger Live app from its platform. This action raises concerns about the oversight and security of app stores, as users rely on them for safe downloads.

The initial transaction directed to the scammer's wallet took place on October 24th, amounting to $5,210. Prior to this, the wallet had been dormant without any activity. Most of these transactions have transpired since November 2nd, with the most substantial transfer totaling $81,200 on November 4th, underscoring the urgency for users to exercise caution.

An investigation uncovered the existence of the fake "Ledger Live Web3" application on Microsoft's app store as early as October 19th. This discovery suggests that the issue of fraudulent applications infiltrating trusted platforms is an ongoing concern.

The fake “Ledger Live Web3” app on Microsoft Apps. Source: Microsoft 

ZachXBT disclosed that he had received two messages from victims on November 4th and even contended that Microsoft should bear responsibility for permitting the fraudulent Ledger Live app to appear on its app store. This incident highlights the need for stricter vetting procedures on app stores to protect users.

Wow that’s insane :(

— Zain ???? (@zaingaziani) November 5, 2023

This incident is not the first instance of a fake Ledger Live app infiltrating Microsoft's app store. Ledger's support account on X (formerly Twitter) previously alerted its users about such fake apps on two separate occasions, in December and March, demonstrating the persistence of scammers in targeting unsuspecting users.

???? Hey #ledger users

Beware of fake Ledger Live apps published on the Microsoft Store????

The only safe place to download Ledger Live is on our website????https://t.co/cDLX1rEWPf

Ledger will NEVER ask you for your 24-word recovery phrase ❌

Stay safe ???? pic.twitter.com/0dXTJ7FeuO

— Ledger Support (@Ledger_Support) December 26, 2022

As of now, Ledger has refrained from commenting on this particular scam but has consistently emphasized to users that the "sole secure source" for downloading Ledger Live is their official website, ledger.com. Users must exercise utmost caution when managing their cryptocurrency assets, as scams continue to be a prevalent threat in the digital landscape.

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