Ledger Takes Swift Action: Promises Full Reimbursement In Wake Of Connect Kit Exploit

Ledger, the provider of hardware cryptocurrency wallets, has announced its commitment to reimbursing all users whom the recent Ledger Connect Kit exploit has impacted.

Ledger has reported the unauthorized extraction of approximately $600,000 in assets through users’ blind signing on EVM DApps. The company commits to fully compensating all affected users, and, as part of security measures, it will discontinue blind signing with Ledger devices by June 2024.

On Dec 20, Ledger communicated via X (formerly Twitter) that the company is cognizant of approximately $600,000 in assets that have been affected or pilfered from users due to blind signing on Ethereum Virtual Machine (EVM) decentralized applications (DApps).

On Dec 14, 2023, numerous decentralized applications utilizing Ledger’s connector library, including SushiSwap and Revoke. Cash fell victim to security breaches, leading to substantial financial losses for investors.

A New Era: Ledger Pledges To Cease Blind Signing By June 2024, Prioritizing Clear Signing Practices

However, the recent announcement affirms Ledger’s commitment to fully compensate and reimburse affected victims. The company expressed the following:

“We pledge, utilizing any means necessary, including acts of goodwill, to ensure the completion of this process by the conclusion of Feb 2024. We are communicating with numerous affected users, actively addressing their particulars.”

Furthermore, Ledger’s will persist in collaborating with the DApp ecosystem to facilitate transparent signing processes, but the company will discontinue the practice of blind signing with Ledger devices. However, Ledger’s anticipates phasing out blind signing with Ledger devices by June 2024.

“Our dedication is to collaborate with the community and DApp ecosystem, enabling Clear Signing to empower users to verify all transactions on Ledger’s devices before finalizing the signing process. This initiative aims to establish a new standard that enhances user protection and promotes the adoption of Clear Signing practices across various DApps,” as stated in the announcement.

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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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