In a distressing turn of events, a Charlotte man named Gene Duckett lost over $1 million in cryptocurrency to a sophisticated phone scam. This incident highlights the growing threat of cryptocurrency fraud as scammers find increasingly clever ways to deceive unsuspecting victims. Duckett’s experience serves as a warning to many who engage in the digital currency world.
The scam began one Friday night in March when Duckett received a call purportedly from Ledger, a well-known company that produces hardware wallets designed for securely storing cryptocurrency. “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,’” Duckett recounted.
Eager to protect his assets, Duckett was directed to a website where the scammers presented themselves as protectors of his funds. They employed a multi-step strategy to build trust, creating a false sense of security. “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,” Duckett explained. This tactic worked as Duckett became increasingly convinced of the legitimacy of their claims.
As fate would have it, a second caller, who also knew the security code, reached out to Duckett. Feeling confident, he entered his seed phrase—a critical recovery phrase required to access cryptocurrency accounts—on the website. Unfortunately, this decision was made under the false pretense of security.
The nightmare escalated when a third caller informed Duckett 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 all the funds that were in my wallet were gone,” Duckett recalled in disbelief. Just like that, over $1 million vanished with a click — $1,038,000 to be precise.
Beyond the financial loss, Duckett expressed the emotional toll the incident took on him. He mentioned that even his dog sensed his despair that night. “I’ve really beaten myself up quite a bit about this,” he lamented, showcasing the deeper human impact of such scams.
Cryptocurrency Fraud: An Astonishing Global Epidemic
Duckett’s harrowing experience is not unique. In 2024, the FBI Internet Complaint Center logged nearly 150,000 complaints regarding cryptocurrency fraud, resulting in astounding losses of $9.3 billion. This alarming figure sheds light on the relentless escalation of scams plaguing the burgeoning world of cryptocurrency.
Eithan Raviv, CEO of the cybersecurity firm Lionsgate Network, described the situation as “a real global emergency.” Raviv, who works alongside victims of crypto fraud, emphasized the importance of tracing 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,” he stated in his commitment to helping victims regain lost assets. Raviv is currently partnered with Duckett on his case and remains optimistic about his chances of recovery.
Company Response to Data Breaches
According to Raviv, Ledger has faced at least two data breaches, which might have made Duckett susceptible to attack. In response to such incidents, a Ledger spokesperson reiterated the company’s core policies: “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 statement underscores the importance of consumer awareness and due diligence in the cryptocurrency landscape.
Practical Protection Tips Against Scams
To prevent falling victim to similar schemes, experts recommend several essential security practices:
- Verify that the website you’re using to buy cryptocurrency is legitimate, particularly ensuring it starts with “https” – the “s” signifies a secure connection.
- Remain cautious of unsolicited phone calls, even if the caller displays personal knowledge such as your name.
- Under no circumstances should you share your recovery phrase, even if pressed by individuals claiming to represent legitimate companies.
Anyone who suspects they have been scammed is urged to report it to the FBI’s Internet Crime Complaint Center via ic3.gov. As the landscape of cryptocurrency continues to evolve, staying informed and vigilant is crucial in safeguarding one’s assets.
Copyright 2026 Gray Media Group, Inc. All Rights Reserved.
