Ledger Security Breach Affects $600,000 Of Users

Key Points:

• Ledger security breach last week led to a $600,000 asset theft from users employing blind signing on Ethereum dApps.
• Ledger vows to aid affected users, regardless of device use, in recovering funds by February 2024.
• Clear Signing implementation is planned, and blind signing with Ledger devices will cease by June 2024.

In a recent large-scale security incident, crypto hardware wallet manufacturer Ledger revealed that approximately $600,000 worth of assets were compromised last week.

Ledger Security Breach Shakes Saw $600,000 in Assets Stolen

The Ledger security breach targeted users employing blind signing on Ethereum Virtual Machine (EVM) decentralized applications (dApps). Ledger has committed to assisting affected individuals, irrespective of their use of Ledger devices, in recovering their funds by the end of February 2024.

Ledger, based in Paris, has taken immediate steps to rectify the situation. The company aims to collaborate with the dApp ecosystem to implement Clear Signing, and enhance security measures. Notably, Ledger has decided to discontinue the use of its devices for Blind Signing before June 2024.

The Ledger security breach affected various Ethereum-based applications, including Zapper, SushiSwap, Phantom, Balancer, and Revoke.cash. Ledger identified and fixed the malicious code by 13:35 UTC, urging users to engage in Clear Signing transactions to ensure direct interaction with the company’s website and software.

Recovery Plans and Increased Vigilance

Despite the brevity of the debacle, caution remains advised. Cybersecurity experts emphasize prudence when interacting with applications in the aftermath of an incident. Reflecting a responsible stance within the crypto industry, stablecoin issuer Tether took proactive measures by freezing a portion of the stolen funds.

The hackers executed the Ledger security breach by initiating a phishing email to a former Ledger employee. Subsequently, they gained access to one of the software development accounts, enabling them to distribute the malicious code.

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