A musician known as G. Love (Garrett Dutton) fell victim to a fake Ledger Live app, losing nearly six Bitcoins valued at over $424,000. After downloading what appeared to be the legitimate Ledger Live from an app store and following the on-screen prompts, the attacker requested a 24-word recovery seed phrase and drained the wallet as soon as it was entered.
On-chain detective ZachXBT traced the stolen 5.92 BTC to KuCoin deposit addresses, noting the funds were moved through multiple KuCoin endpoints. He said there is little evidence of KuCoin’s direct involvement, arguing that the exchange only conforms to regulations when it serves its own interests. The case underscores broader regulatory questions after KuCoin reportedly lost its MiCA license within three months of acquisition in February 2026. The pattern of deposits across many addresses suggests the stolen funds were quickly moved to exchange services.
Pudgy Penguins security chief Beau warned users never to enter seed phrases on internet-connected devices and cautioned that scammers distribute fake wallet apps via email, guidance, or even mail. Security experts urge that any request to download or update wallet software should be verified directly by the user before acting.
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