Blockchain investigator ZachXBT has linked a pretend Ledger Reside app to over 50 victims, who’ve misplaced a complete of $9.5 million value of crypto between them.
He traced stolen funds to KuCoin deposit addresses and known as out the crypto trade through Telegram and X.
Over 150 addresses tied to a recognized cash laundering service have been reportedly used to deposit stolen funds to the trade.
App Retailer honeypot
Garrett Dutton of the band G. Love & Particular Sauce initially drew consideration to the pretend pockets app, beforehand out there on Apple’s App Retailer, when he took to X on Saturday to lament dropping his retirement fund “in an instant.”
Dutton’s thread explains that he misplaced 5.9 bitcoin (value roughly $440,000) after being “tricked” into getting into his seed phrase into the app.
Round 12 hours after Dutton’s publish, ZachXBT flagged 9 transaction IDs which the sleuth claims present Dutton’s BTC being “laundered” through crypto trade KuCoin.
Two days later, ZachXBT printed a follow-up neighborhood alert to his Telegram group ‘Investigations.’ It linked the pretend app to “$9.5M stolen from 50+ suspected victims between April 7–13 across Bitcoin, EVM, Tron, Solana, & Ripple.”
The highest three victims reportedly misplaced a mixed whole of $7.25 million in varied cryptocurrencies.
KuCoin beneath fireplace
ZachXBT’s Telegram publish additionally tied over 150 KuCoin deposit addresses to cash laundering service AudiA6.
He additionally known as out KuCoin on X, the place he highlighted each these pretend Ledger Reside app-linked thefts and the current Bitcoin Depot loss, accusing the trade of permitting cash launderers to “operate freely.”
C) Wish to clarify to the neighborhood why Kucoin allowed a menace actor to launder $9.5M+ tied to a pretend Ledger app through 150+ Kucoin deposit addresses over the previous week?
A number of days earlier than that one other menace actor laundered $3.5M+ from the Bitcoin Depot incident through 25+ Kucoin… pic.twitter.com/vo7jb1rdwu
— ZachXBT (@zachxbt) April 14, 2026
The trade finally replied to ZachXBT’s listing of theft addresses within the Dutton case, 48 hours after it was posted. Different on-chain investigators have flagged addresses allegedly linked to scams who’ve deposited vital sums to KuCoin over current weeks.
Simply over two years in the past, KuCoin and two of its founders have been charged with flouting U.S. anti-money laundering legal guidelines.
Protos reached out to KuCoin, nevertheless it didn’t reply instantly, we’ll replace this piece if we hear again.
