Crypto Security: My $30k Lesson in the Wild West
Crypto is all the rage again! It’s funny, really. I’m a believer, but when it comes to security, I don’t trust crypto at all. Let me explain why.
To me, crypto still feels like the Wild West. Smart, savvy people who understand the system can bend it to their will, while the rest of us are left feeding coins into the ride—sometimes for pleasure, but often for pain.
I genuinely think the ongoing economic shift will involve crypto. But to what extent? I’m not sure. The powerful players in our world won’t relinquish control easily. They’ll rattle their sabres and make any transition into this new paradigm as painful as possible—until they figure out how to profit from it. For now, adoption exists mostly on the fringes.
Unfortunately, my personal experience with crypto security has left me jaded. And while I admit my bias, the details of my story might explain why I feel this way.
The $30k Vanishing Act
Back in 2017 and 2018, I invested nearly $30,000 into various cryptocurrencies. To keep it secure, I moved everything into cold storage on a Ledger Nano S.
I was careful. I bought the device directly from Ledger in France, fully aware of potential "man-in-the-middle" hacks where compromised hardware can be exploited. My Ledger Nano S was stored in a safe, along with the paper backup of my recovery phrase. The safe is hidden, installed by me, and only my wife and I know it exists.
For over a year, I didn’t touch my Ledger. Then, in late 2019, I checked my holdings via Etherscan. What I found stunned me: all my crypto had been moved out of my wallet back in February 2019.
This wasn’t me. My Ledger hadn’t left the safe.
Ledger Support: A Lesson in Frustration
I contacted Ledger support immediately, only to be hit with excuses. First, they suggested I must have bought the device from eBay and been scammed. Wrong. I provided proof that I had purchased it directly from them.
Next, they implied I must have shared my recovery phrase. Wrong again. I sent them photos of my hidden safe and explained the controlled access.
What came next was the final insult. They closed my support ticket, claiming the matter was resolved. It wasn’t. They had done nothing.
The Bigger Problem: No Recourse
This is the harsh reality of online security and fraud in a decentralised world: there’s no recourse. Minimal regulation means companies like Ledger can hide behind FAQs—more like "F**k You's"—and call it customer support.
What can I do? I’m in Australia, Ledger is in France, and my $30k means nothing on an international level. Reporting it as a crime? That’s a joke.
Even if I filed a report at my local police station, what’s next? Reporting to the Australian Cybercrime website? Been there, done that. It goes nowhere.
A Quick Segway: The Gumtree Scam
This isn’t my first rodeo with digital scams. Years ago, I fell victim to a postage scam on Gumtree. I paid via PayPal, and the transaction was flagged for fraud. When I called PayPal, they cited "privacy constraints" and refused to provide any details. Scammers get protection under the guise of privacy, while platforms keep raking in transaction fees.
The scammer went as far as sending manipulated SMS messages to support their fraud. I still have their phone number—it routes internationally. Sometimes I call it, and yes, the same person answers. One day, I’ll investigate further.
Australia Post told me that postage scams happen every day, but they couldn’t help without a court order. To get a court order, I’d need the scammer’s details. It’s a never-ending loop, and scammers are winning.
Crypto: A Love-Hate Relationship
Despite everything, I still believe in crypto. It has a role in our future. But without proper security and regulation, faith in the system will erode.
Right now, international laws—and even local ones—aren’t in your favour. My advice? Keep your crypto on a major exchange. It may not be perfect, but it’s better than trusting private companies with your hard-earned money.
This is the new gold rush. Thinking often takes a backseat to greed. Before you leap, think twice.
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