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Ledger’s $484K Crypto Heist: Widespread Impact on DeFi Platform

Explore the recent Ledger crypto wallet hack, where $484K was stolen, affecting numerous DeFi platforms.

Claudia Fischer

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The crypto world witnessed a security breach, when hackers penetrated the Ledger crypto wallet, resulting in a loss of $484,000. This incident impacted Ledger and sent ripples across various decentralized finance (DeFi) protocols reliant on the software.

Exploiting Ledger’s GitHub Repository

Hackers executed their scheme by embedding malicious code into Ledger’s GitHub library, specifically targeting the Connect Kit. This toolkit, maintained by Ledger, is important for several DeFi protocols like Coinbase, MetaMask, Sushi, and Lido, among others, enabling them to link with cryptocurrency hardware wallets. Given its widespread use, the breach risks the front-end security of all these protocols.

Immediate Response and Ongoing Risks

Ledger’s team, upon detecting the breach, reported that the cyber-thieves drained the funds in a span of less than two hours. Responding to the crisis, Ledger updated its code to mitigate the immediate threat. However, the broader issue persists for other DeFi protocols utilizing the Connect Kit. They remain at risk until they individually update their library versions.

Also Read: Binance Partners with Royal Thai Police Against Scammers to Seize $277M

Blockchain security expert Ido Ben-Natan, CEO of Blockaid, highlighted the continuing danger. He pointed out that several websites remain exposed, and users are at risk of being targeted. Ben-Natan revoked. cash as a high-risk protocol, advising users to avoid interaction with it.

 Surge in DeFi Hacks

This event adds to security breaches in the DeFi space, marked by an array of attacks including phishing, bridging hacks, and SIM swaps. July alone saw over $303 million stolen, with platforms like Curve Finance and Multichain Prey. A recent incident involving the Mixin Network led to a loss of $200 million.

These incidents reflect a broader trend in the crypto industry, which, according to a Q3 report from Immunefi, has experienced a 153% year-on-year increase in hacks and scams. This alarming statistic underscores the increasing security challenges faced by the crypto sector.

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