Crypto | Dec 15, 2023
Image: Unsplah/Azamat EA Wake-Up Call for Crypto Security. On December 14, Ledger’s Connector Kit software was exploited.
Ledger, known for manufacturing physical cryptocurrency wallets resembling USB drives and other storage devices, was compromised affecting multiple Ethereum-based applications, including Zapper, SushiSwap, Phantom, Balancer, and Revoke.cash, due to a security breach in Ledger’s system.
While the exact number of affected decentralized apps (dapps) and the total financial loss are still being assessed, anecdotal reports suggest widespread exploitation. Blockaid, a blockchain security firm, estimated losses of over $150,000 in crypto due to this unique “supply chain attack” on Ledger’s Connect Kit. Others reported the draining of over $600,000 from users’ wallets.
See: Jamie Dimon Advises Government to ‘Close Down Crypto’
Ledger CEO Pascal Gauthier described the hack as an “isolated incident” and fixed the malicious code and promised stronger security controls. The exploit, which lasted less than two hours, was attributed to a phishing attack targeting a former employee. Ledger assured that their hardware and Ledger Live platform were not affected. They advised users to use the “Clear Sign” feature for transactions to ensure direct interaction with Ledger’s software.
The crypto community’s response, including assistance from entities like Tether and Chainalysis, highlights the collaborative effort in addressing such security breaches. These breaches not only affect individuals and projects but also tarnish the reputation of industry. Security expert Steve Gibson emphasized the need for skepticism in an industry with a history of significant hacks.
Moving On
The Ledger hack is a reminder of the ongoing challenges in ensuring the security of digital assets. Users are advised to exercise caution and stay informed about the security of their digital assets, especially when interacting with decentralized applications.
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- Source: https://ncfacanada.org/ledgers-hardware-wallet-exploited/
