Hardware wallet manufacturer Ledger has responded to a recent one security breach resulting in the theft of $600,000 in user assets.
The company has pledged to improve its security protocols by eliminating Blind Signing, a process in which transactions are displayed in code rather than plain language, by June 2024.
Ledger takes responsibility for ConnectKit attack
In a rackLedger emphasized his focus on addressing the recent security incident and preventing similar events in the future.
The company specifically acknowledged the approximately $600,000 in assets affected by the ConnectKit attack influence users blind signing on Ethereum Virtual Machine (EVM) decentralized applications (dApps).
Additionally, Ledger pledged to ensure that affected victims are fully compensated, including non-Ledger customers, with CEO and Chairman Pascal Gauthier personally overseeing the refund process.
According to the statement, Ledger has already contacted the affected users and is actively working with them to resolve their issue specific cases.
Additionally, blind signing will no longer be supported on Ledger devices by June 2024, helping to set a “new standard for user protection” and championing “Clear Signing,” which refers to a process that allows users to verify transactions on their Ledger. devices before signing them via dApps.
On this issue, Pascal Gauthier, CEO of Ledger, said declared:
My personal commitment: Ledger will use as many internal and external resources as possible to help affected individuals recover their assets.
Increased dApp security measures
According to an incident report The attack, released by the hardware wallet manufacturer, took advantage of the Ledger Connect Kit, injecting malicious code into dApps using the kit.
This malicious code sent assets to the attacker’s wallet through deception EVM dApp users to “unknowingly signing transactions” that emptied their wallets.
Ledger addressed the attack by deploying a real solution for the Connect Kit within 40 minutes of detection. The compromised code remained accessible for a limited time due to the nature of Content Delivery Networks (CDNs) and caching mechanisms.
Ledger recognized the risks the entire industry faces in protecting users and emphasized the need to continually raise the bar for security in dApps.
The company plans to strengthen its access controls, conduct audits on internal and external tools, strengthen code signing, and improve infrastructure monitoring and alert systems.
Moreover, Ledger will train users about the importance of Clear Signing and the potential risks associated with blind signing transactions without secure display.
In particular, Clear Signing provides users with a clear and readable representation of the transaction details, allowing them to review and validate the transaction before signing.
This extra layer of transparency and authentication helps users mitigate the risks associated with front-end attacks or malicious code injected into decentralized applications
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: The article is for educational purposes only. It does not represent NewsBTC’s views on buying, selling or holding investments and of course investing involves risks. You are advised to conduct your own research before making any investment decisions. Use the information on this website entirely at your own risk.