A cryptocurrency scammer reportedly lost about $4.8 million after storing stolen funds on three Ledger hardware wallets that had been compromised before purchase, according to Cointelegraph. The incident forms part of a wider supply-chain attack that has affected Ledger resellers in Southeast Asia and allegedly drained more than $103.4 million from 530 addresses.
Scammer caught by the same type of attack
Blockchain analysis firm Chainalysis said the individual lost 60 Bitcoin held across three newly purchased Ledgers. The devices reportedly contained spyware designed to capture wallet seed phrases, the recovery words that can be used to restore control of a cryptocurrency wallet. The stolen Bitcoin was then transferred from all three devices to one wallet controlled by the attackers.
The case is notable because the person affected was allegedly operating a task scam. In this type of fraud, targets may be offered payment for completing activities such as creating sales or product reviews. Chainalysis said the victims were later shown a “negative balance” and told to deposit their own money before they could be paid. The reported loss therefore links two separate forms of deception: the original scheme targeting members of the public and the theft of the scammer’s cryptocurrency.
Ledger suspended its reseller network across Southeast Asia after tampered devices were connected to thefts from more than 530 addresses. The company asked resellers in Indonesia, Singapore, Thailand, the Philippines, Vietnam, Malaysia and Hong Kong to remove Ledger devices from sale. Ledger has said that all confirmed thefts so far have occurred in Asia, despite reports of tampered devices appearing in Europe. Electronics retailer MediaMarkt suspended sales following those reports.
Trezor has also decided to close some more distant resellers in its network from Jan. 1, saying it cannot guarantee the same level of oversight as it provides to resellers closer to its operations. The source material said there were no reports of tampered Trezor devices.
Ledger has introduced a new device, the $849 Atom, during the security crisis. It combines a cryptocurrency wallet with Android applications while keeping the apps separate from sensitive wallet functions. Ledger says the device includes safeguards intended to prevent the implants used in the Asian thefts and can identify tampering even when it is switched off.
South Korea and Thailand expand crypto oversight
South Korea has approved measures to block domestic access to websites operated by 27 unregistered cryptocurrency exchanges and other virtual-asset service providers. The Financial Intelligence Unit said the action would extend website blocking to illegal operators already being addressed through app restrictions. The named platforms include KuCoin, MEXC, Phemex, Bitrue, CoinW, BTCC, BitMart, BingX and DigiFinex.
South Korean authorities are also planning a broader cybersecurity overhaul for financial institutions. The Financial Services Commission said it would seek stronger threat monitoring, more frequent security reviews and greater accountability for executives. An industry review found cybersecurity deficiencies at 130 of 555 financial companies, including 16 firms involved in earlier security incidents and crypto-related cases.
Separately, Jeonbuk Bank reportedly began offering corporate loans backed by Bitcoin. A third-party custodian holds the cryptocurrency used as collateral.
Thailand’s securities regulator has finalized rules allowing cryptocurrency exchange-traded funds to begin trading on the Stock Exchange of Thailand. The first products are linked to Bitcoin and Ether. Initially, funds tied to overseas crypto ETFs will not be allowed, while Thai brokers may facilitate overseas crypto-ETF investments only for institutions and ultra-high-net-worth individuals.
James Butterfill, head of research at CoinShares, told Cointelegraph that initial inflows were more likely to be measured in tens of millions of US dollars across the first products than billions.
Regional market and regulatory developments
Australia’s securities regulator, ASIC, has opened consultation on proposed capital, custody and trading requirements for crypto platforms ahead of a planned 2027 rollout. The proposals include three possible capital models, limits on platforms trading for their own account and quarterly reporting on wallets holding customer assets. ASIC is also seeking views on offshore custody safeguards and has proposed extending contracts-for-difference rules to crypto.
In Hong Kong, Pando Finance launched a Solana ETF on the HKEX under ticker 2831.hk. It is the second Solana fund listed there and carries a 0.6% fee, compared with 0.99% for the first fund from ChinaAMC.
Other developments included a legal setback for Chinese fraud victims seeking recovery of 61,000 Bitcoin seized by British authorities. London’s High Court ruled that Chinese law should govern the claims because the losses and relevant contractual relationships arose in China. The claimants plan to appeal.
Coins.ph said it remains licensed by the Philippine central bank after reports raised questions about possible action over transactions involving restricted offshore gambling operators. The company denied knowingly serving such operators and said customer funds were safe. Binance co-CEO Richard Teng said the exchange may add Hong Kong, Korean, Taiwanese and Brazilian equities. Singapore reported a 43% year-over-year decline in crypto-scam losses after a police and exchange crackdown, while Revolut said it would invest S$350 million in Singapore over five years and increase its local workforce from 170 to 300.
Moneyiar market picture
Moneyiar data at 21:48-21:49 on Oct. 17, 2026, showed Bitcoin at $81,174.166707876, down 0.5% over 24 hours and 2.22% over seven days. Ethereum was at $2,379.3173412276, down 1.42% in 24 hours and 5.09% over seven days.
Monad was priced at $0.0214969238, down 6.11% over 24 hours and 14.91% over seven days. edgeX stood at $0.2937651937, down 3.17% over 24 hours and 18.38% over seven days.
