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Ledger on the edge of bankruptcy after data leak

Photo of: Nathan VDH
by Nathan VDH

One million customers of the wallet manufacturer crypto Ledger are now at risk of being the target of fraud attempts. These attacks, and even these real threats, are the result of hacking. Ledger apologized but will not compensate its customers.

Ledger, the hacker attack, episode two. The French company, manufacturer of famous electronic wallets for cryptocurrencies, is going through a serious upheaval. And it is taking a large number of its customers with it.

In July, Ledger announced that a computer attack had infiltrated a database. A hacker had seized the personal information of a million of the brand’s customers.

That was the first episode. The second starts this week with the release of a large part of the data stolen during this hack. Worse still, there is even more personal information. This includes phone numbers, names and postal addresses.

The consequence is immediate for Ledger’s customers concerned: attempts to swindle (phishing) by email and SMS, and even physical threats. Internet users report receiving threatening e-mails demanding payment of ransom.

“On behalf of Ledger, I would like to express our deepest regrets for this situation. We know that some of you have been targeted by email and SMS phishing campaigns, which are clearly a nuisance,” said CEO Pascal Gauthier.

The attacks are more or less sophisticated. For example, some Internet users report attempts at identity theft. Indeed, hackers try to convince victims by presenting themselves as Ledger employees.

And the objective is simple: to recover the passwords of the precious wallets in order to access the crypto funds they contain. Most of the attacks you will receive will be online scams that will try to recover your 24 words,” warns the manufacturer.

The crypto funds are not in danger
“We can never say it enough: the most significant thing is never to share your 24 words with anyone. Not even Ledger. We’ll never ask for them. Likewise, Ledger will never contact you by text message or phone,” his boss insists.

The manager also takes care to hammer home a message, probably the number one concern of Ledger’s customers: “Your funds are safe. The company also makes sure it does everything possible to reinforce its security and react to attacks.

The grumbling of disgruntled customers is very real, however. But there is no word from Ledger about offering any form of compensation. The manufacturer could well be forced to do so in the long run by the courts as a result of a class-action lawsuit. If that were to happen, it could spell the end of the company.

That’s why claims for financial compensation are out of the question, says Pascal Gauthier. “Faced with a data leak of this magnitude, such a small company will not reimburse the terminals of a million users. It’s just not possible. It would just kill the company,” he justifies.