Ledger, the well-known crypto-wallet hardware manufacturer, has announced that it will reimburse all the victims of a recent hack attack, totaling around $600,000. In addition to the refund, Ledger will also make modifications to enhance the security of its devices.
The hack occurred when the Ledger Connect Kit software was compromised due to a phishing attack by a former employee. The hacker inserted malicious code that redirected users’ funds to their own wallet during transactions with decentralized applications (dapps) that utilized the software. The exploit not only affected Ledger’s crypto hardware wallets but also targeted other providers and popular dapps like Sushi Swap’s DEX and Revoke.cash.
Ledger’s reimbursement will not only cover its customers but all victims who use the hacked software. The company has also announced changes to improve device security, including eliminating blind signing by June 2024 and promoting “Clear Signing” among dapps for enhanced transaction verification.
According to Ledger’s CEO Pascal Gauthier, clear signature helps mitigate these issues as users can avoid inadvertently signing illicit transactions when they can see what they are signing on a reliable display. Ethereum’s plugin system allows dapps to implement clear signing for user protection.
CTO Charles Guillemet previously stated that the new crypto bull cycle has already begun. Factors such as the approval of Bitcoin spot ETFs and the Bitcoin halving in April are expected to increase interest in crypto. Guillemet believes this cycle will bring significant investments and infrastructural improvements that make blockchains more scalable, thanks to solutions like Ethereum’s layer 2 solutions and Cosmos and Solana blockchains. This time, congestion problems and high costs are expected to be avoided.
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