The victim was Olivier Acuña, a veteran journalist known for his in-depth investigations into drug cartels and government corruption in Mexico. After decades in journalism, Acuña transitioned into the crypto industry, where he became a seasoned professional. He even served as PR director for the blockchain company IoTeX, overseeing the company’s communications and advocating for blockchain technology.
Acuña’s salary and bonuses were paid in IoTeX’s native token, IOTX, which he stored in a Ledger hardware wallet. This cold wallet, with its offline storage, added an extra layer of security. Trusting blockchain’s decentralized nature to combat corruption and censorship, Acuña was confident in his choice. Ironically, it was this trust that made him susceptible to the scam.
1.1 The Problem
Acuña’s story began with a seemingly routine withdrawal attempt. Over two years, he had accumulated a significant amount of IOTX tokens in his Ledger wallet, planning to use them as retirement funds. However, when he attempted to withdraw the tokens, the wallet application began displaying error messages.
Repeated attempts to resolve the issue failed. Frustrated, Acuña, who lacked in-depth technical expertise, couldn’t figure out what was wrong with his hardware wallet. His frustration turned to anxiety as the need for funds became urgent. The cold wallet, once seen as an impenetrable fortress, now felt like an insurmountable obstacle.
1.2 Seeking Help
Desperate, Acuña turned to social media. On X (formerly Twitter), he commented under a post about a Ledger app update, detailing his problem and asking for official assistance.
Before long, a “savior” appeared — a blue-check verified account claiming to be Ledger’s official support. The account reached out via direct message, displaying a professional and friendly demeanor. They assured Acuña they understood the issue and were ready to help.
The scammers informed Acuña that his problem was common and could be resolved by updating his wallet application. They sent him a link, claiming it led to an “official fix tool.” The webpage was impressively designed, mirroring Ledger’s official site down to the smallest detail. Acuña, trusting the blue checkmark and the professionalism of the response, clicked the link and downloaded the “tool.”
Following the instructions, he was prompted to input his wallet’s seed phrase for verification. A seed phrase — a sequence of 12 to 24 words — is the master key to accessing any cryptocurrency wallet. The scammers, speaking with calm authority, reassured him this was the final step in resolving his issue. Tragically, Acuña complied.
1.3 The Scam
Moments later, when Acuña attempted to access his wallet, he discovered the balance was gone. The $400,000 worth of IOTX tokens had been transferred to an unknown address.
Using a blockchain explorer, Acuña tried to trace the transaction. He found that the funds had been quickly dispersed across multiple wallets and eventually deposited into Binance, one of the world’s largest cryptocurrency exchanges.
Acuña immediately contacted Binance to freeze the funds. However, the exchange required official police involvement before taking action. He reported the incident to the authorities, but the investigation lagged far behind the scammers’ speed. By the time any progress was made, the tokens had vanished.
In the end, Acuña recovered only $20,000 worth of stablecoins. The remaining $400,000 in IOTX tokens — his intended retirement fund — was gone, a loss he could never recoup.
