Rise of Fake Ledger Scams Targeting Crypto Users Reported by SlowMist – Coincu

On May 19, 2025, SlowMist founder Yu Xian reported a fresh wave of “fake Ledger” scams that target high-net-worth crypto users. The scam involves mailing counterfeit Ledger devices accompanied by instructions to extract users’ mnemonics, exposing them to asset theft.

Technological Vulnerabilities Undermine Crypto Security

The fraudulent activity re-emerged recently, echoing attacks originating in 2021 with evolving tactics. Yu Xian of SlowMist is the primary figure sounding the alarm about this threat targeting crypto users worldwide.

The primary change includes increased sophistication in how scammers deceive users into entering their seed phrases, using counterfeit hardware to boost credibility. This raises concerns about security practices among cryptocurrency enthusiasts.

Industry reactions highlight the danger these scams pose, especially with expert Yu Xian underscoring their success. He warns that while seemingly rare, such attacks critically impact high-net-worth users, often with significant asset losses.

“Physical phishing attacks like the fake Ledger scam might seem rare, but they have a surprisingly high success rate.” — Yu Xian, Founder, SlowMist

Scams like these have persisted for years, adapting through techniques such as preset mnemonics and tampered RNGs to bypass security measures. Historically, targeting high-value crypto users often results in noteworthy financial losses.

The potential outcomes of these scams include amplified regulatory interest in crypto security and increased scrutiny on hardware wallet authenticity. Historical trends suggest a rise in enhanced user awareness campaigns as a potential industry remedy.