Ledger Promises Full Compensation for Users Affected by Recent Exploit

• Ledger has announced a major policy shift involving the signature of transactions.
• The hardware wallet has joined forces with the DApp ecosystem to provide Clear Signing.

Leading manufacturer of hardware wallets for cryptocurrencies, Ledger, recently fixed a vulnerability in their Ledger Connect Kit. The firm has pledged to compensate any customers who have been impacted by this security incident in full, showing that it takes its responsibilities seriously.

Quick action was taken by Ledger after user reports of several fraudulent transactions. Numerous DApps, including well-known platforms like SushiSwap and Revoke.cash, were compromised on December 14, 2023.

These applications made use of the vulnerable Ledger connector library. Blind signing on Ethereum Virtual Machine (EVM) decentralized applications (DApps) made the hack worse, costing users over $600,000.

Major Policy Shift

Through a statement on Twitter, Ledger recognized the gravity of the problem on December 20. The firm detailed their strategy to pay all impacted customers back for their losses. Ledger is taking a proactive stance towards client security and safety by committing to resolve the problem before the end of February 2024.

Ledger has announced a major policy shift involving the signature of transactions, in addition to the refund scheme. By June 2024, the business plans to have completely eliminated the use of blind signing on all of its devices. Improving security and lowering the likelihood of future vulnerabilities of a similar kind is the primary goal of this decision.

The hardware wallet has joined forces with the decentralized application (DApp) ecosystem to provide “Clear Signing.” With this effort, users will be able to double-check their Ledger devices for any and all transaction details before confirming them. 

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