Charlotte Man’s Shocking $1M Crypto Loss: Could YOU Be Next in This Phone Scam?

(InvestigateTV) — A Charlotte man has lost more than $1 million in cryptocurrency after falling victim to a sophisticated phone scam that initially presented itself as a legitimate call from a crypto security firm. Gene Duckett received a call one Friday night in March, allegedly from Ledger, a company known for its hardware wallets used in cryptocurrency storage.

Duckett recounted the incident, stating, “The guy on the other end says, ‘Is this Harold? I’m Harold Eugene.’ I said, ‘Yeah, who’s calling?’ He said, ‘My name is Benjamin. I’m from Ledger, and your funds are in danger of being stolen.’” This alarming claim set off a chain of events that would ultimately cost Duckett his life savings.

The caller directed Duckett to a website that promised to secure his funds. The scammers employed a multi-step strategy to build Duckett's trust. He explained, “They said they needed to give me a security code so that I would know when someone called back that it was a correct person.” When a second caller knew the security code, Duckett felt reassured and proceeded to enter his seed phrase, a critical recovery phrase used to access cryptocurrency wallets.

Tragically, after entering his information, Duckett received another call from a third individual who claimed that something had gone wrong. “He says, ‘Oh, something went wrong.’ And so as soon as he said that, I looked on the XRP Ledger and I had saved my wallet address in there and all of the funds that were in my wallet were gone,” Duckett said. The entire amount—$1,038,000—vanished in an instant, leaving Duckett devastated.

“It was a lot of money,” he said, reflecting on the emotional toll of the theft. He added that his dog could sense his despair that fateful night. “I’ve really beaten myself up quite a bit about this,” Duckett admitted, illustrating the profound impact of this loss on his life.

The Scale of Cryptocurrency Fraud

Duckett's experience is not an isolated incident. In 2024, the FBI's Internet Complaint Center documented nearly 150,000 complaints related to cryptocurrency fraud, leading to a staggering $9.3 billion in losses. These numbers highlight a troubling trend, as cryptocurrencies continue to attract both legitimate investors and malicious actors.

“This is a real global emergency,” said Eithan Raviv, CEO of cybersecurity firm Lionsgate Network, who aids victims of crypto fraud by connecting them with law enforcement. Raviv is currently working on Duckett’s case and is hopeful about recovering his stolen funds. “We provide to our clients and to law enforcement the necessary tracing, the footprints of the current dollars. This gives law enforcement the option to issue a subpoena or a warrant,” Raviv explained.

Raviv notes that Ledger has faced at least two significant data breaches, which may have played a role in Duckett's targeting. A spokesperson for Ledger reinforced the importance of vigilance, stating, "Ledger consistently reminds users that we will never under any circumstances ask for their 24 words. We encourage users to exercise vigilance, and we will never contact them by phone.” This warning underscores the need for crypto users to remain careful and skeptical about unsolicited communications.

Protecting Yourself Against Scams

As cryptocurrency scams become increasingly sophisticated, experts recommend several strategies for protecting oneself from fraud:

• Verify that the website you are using to buy crypto is legitimate, ensuring it starts with “https”—the “s” indicates that it is secure.
• Be wary of phone calls from unknown numbers, even if they seem to know your name or other personal information.
• Never share your recovery phrase with anyone, regardless of the circumstances.

If you suspect you have been scammed, report it to the FBI’s Internet Crime Complaint Center at ic3.gov. The increasing prevalence of such scams makes it crucial for individuals to stay informed and cautious in the evolving landscape of cryptocurrency.