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American musician Garrett Dutton, lead singer of G.Love & Special Sauce, says he has lost his retirement funding—5.92 Bitcoin (about $424,000 at the time of writing)—after entering his 24-word seed phrase into a fake Ledger application downloaded from Apple’s App Store.
Dutton reported that his cryptocurrency disappeared immediately after he entered his seed phrase into the app.
According to his account, the malicious application appeared to pass Apple’s checks and was listed as legitimate, despite being misspelled as “LeddgerLĭve.”
On-chain investigator ZachXBT took up the case and said the stolen funds were laundered on KuCoin through nine different addresses.
ZachXBT also said that freezing or recovering the assets was nearly impossible, citing KuCoin’s reputation for handling funds associated with criminal activity. He added that the exchange lost its EU MiCA regulatory license in February 2026, three months after obtaining it, due to compliance issues.
Ledger responded by reminding customers that its legitimate apps are only available on Ledger.com, and said it would continue monitoring the situation while posting updates on its awareness page.
Apple had not issued a statement at the time of the report, despite community outreach. Reactions on X included criticism from users who believed apps on the App Store were authentic and verifiable.
Many commenters also reiterated a broader security concern: entering a hardware wallet seed phrase on any internet-connected device undermines the purpose of a cold wallet.
Earlier in the month, law enforcement agencies concluded Operation Atlantic, a week-long effort that dismantled a $45 million crypto fraud network. The group allegedly used fake investment dashboards and phishing notifications to scam victims. Authorities also reported similar busts in January and February, with losses collectively reaching into the billions of dollars.

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