Speaking from a fair bit of experience...
Yes that HAS TO BE a LED. BUT that is not the problem I'm sure its not the problem. If its blown, ok yea its "a broken part" but it didn't just blow on its own.
1 - Check the fuse (sometimes they use a 1ohm or less resistor as a "fuse" on some hard drives and small usb devices.)
If fuse is blown, try just replacing the fuse (or shorting it by soldering a thin "hair like" wire across it.)
Then test it on a DESKTOP with USB 2.0 or 2.1 (not 1.1 or 1.0) NOT on a laptop! Why? Because most laptops do not allow/have the USB amps that a desktop controller has/allows. I have a computer just for testing and repairing things. I have a modified USB card that pulls power directly from the power supply (so I have about 10 amps available to be pulled. Not that I never need that much, LOL)
2 - If fuse is fine, or it still doesn't work, check the surface mount connections that are connected to/from the PIN1 and PIN5 usb connection. (First and last pins. Pin5 is GND/-5V and Pin1 is VCC/+5v) also look around both sides for burnt/missing PC wires. I've had MANY times that there was a burnt wire and it was simply just missing! I soldered on a "jumper wire" very VERY carefully and the unit worked again! Its a common thing for laptops, and usb devices.
3 - Check those inductors/coils. Sometimes they get hot (keep in mind how hot hard drives can get) and burn/short.
Last resort: If data is on there that needs to be replaced, there IS someone on ebay selling a logic board (just type in the model) but I saw for $75. Seems pricey. But cost of data is sometimes priceless so... yea... I all the time buy logic boards when I can't fix one in order to recover customer data.
If I may be nosey... what was the use of this hard drive? Seems a bit over priced for what it does. (Example just getting a SATA and a USB3 converter or encloser)
PS: Sorry I've been very sick so my brain might not be so in there with the terms and all or spelling... lol
ANYWAY!!! Good luck! Hopefully this helps or you figure it out or someone else does.