Ex-Singapore Officer Jailed Nearly 7 Years for $1.7 Million USDT Theft

- Former naval officer sentenced for stealing $1.7 million USDT using friend’s cold wallet seed phrase - Case highlights global vulnerabilities of cold wallet storage when physical security is breached 2026-05-09 On May 8, 2026, Zaobao reported that former Singapore naval officer Zhang Rongxuan was sentenced to six years and ten months in prison for stealing about $1.7 million USDT from a friend’s cold wallet. According to Zaobao, Zhang secretly photographed the seed phrase during a visit to the victim’s apartment, and the sentencing took place on May 9 at a Singapore court. Zaobao reported that Zhang told investigators he had suffered major financial losses from the collapse of FTX, and investigators confirmed he used the stolen funds for luxury items, debt repayment, gambling, and investments. As a result, the case has drawn significant attention from both law enforcement and the crypto industry. According to Zaobao, industry experts described this case as part of a rising trend of “wrench attacks,” in which attackers gain physical access to seed phrases or wallet credentials and bypass digital safeguards. In addition, Zaobao noted that recent global cases include convictions in the United States and a series of crypto-related kidnappings and attacks in France. These incidents show that even cold storage, which is designed to prevent online hacking, remains vulnerable if physical security is compromised, and they underscore the need for comprehensive protection strategies for crypto holders. Zaobao further reported that, as of May 9, 17:09 UTC, Tether USDt (USDT) was trading at $1 with a 0.001% 24-hour change, while FTX Token (FTT) was trading at $0.346 with a -3.183% change in 24-hour trading volume, based on the latest market data.