Ex-Singapore Officer Gets 82 Months for $1.7M USDT Cold Wallet Heist

• Zhang Rongxuan sentenced for stealing 1.7 million USDT via cold wallet access.
• Case underscores strict digital asset laws and cold storage risks in Singapore.

On May 9, 2026, CoinDesk reported that a Singapore court sentenced former naval officer Zhang Rongxuan to six years and ten months in prison for stealing 1.7 million USDT. Zhang exploited physical access to a friend’s cold wallet by photographing the recovery phrase, then transferring the assets.

Zhang entered the victim’s apartment, photographed the wallet’s seed phrase, and later withdrew the digital assets. He confessed to the crime, citing financial distress after losing funds in the FTX collapse.

Investigators charged Zhang under Singapore’s Computer Misuse Act for unauthorized use and access to computer material, specifically relating to the cold wallet’s recovery phrase. Prosecutors also pursued penalties under the Corruption, Drug Trafficking and Serious Crimes (Confiscation of Benefits) Act, enabling asset seizure for illicit gains.

Authorities were unable to recover most of the stolen funds due to losses from gambling, but confiscated luxury goods and remaining bank balances connected to the crime. The sentencing signals that Singapore enforces strict penalties for digital asset theft—including cases involving physical access rather than hacking tools.

The incident highlights security risks in crypto holdings, particularly the threat of crimes where individuals exploit physical proximity and trust to compromise assets. While cold wallets are considered secure, their physical recovery details can create vulnerabilities if exposed.

As of May 9, 2026, 16:09 UTC, Tether USDt (USDT) is trading at $1, showing a 0.009% change in 24-hour trading volume. FTX Token (FTT) is trading at $0.347, with a -2.082% change in 24-hour trading volume.