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Ledger adds “clear signing” for multisig with $10 fee per txn

Ledger Introduces Clear Signing for Multisig Users with Transaction Fees Stirring DeFi Criticism

  • Ledger has introduced “clear signing” for multisig users on its hardware wallets.
  • The feature aims to prevent blind signing attacks by showing human-readable transaction details.
  • Contrary to initial claims, use of clear signing involves fees: $10 per transaction or 0.05% of the transferred token amount.
  • This fee model has drawn criticism from DeFi community and security experts.
  • Ledger’s multisig platform supports asset transfers, governance actions, and complex contract interactions.

Ledger, a hardware wallet maker, announced the addition of a “clear signing” feature for multisig wallet users. The feature was released yesterday and is intended to make transaction data easier to read and verify before signing, providing protection against attacks like the $1.5 billion ByBit hack earlier this year. The update applies to Ledger’s devices used in decentralized finance (DeFi) for multisignature transactions.

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According to Ledger’s CTO Charles Guillemet, the feature was initially described as “free” with “no extra cost.” However, after Protos reached out for clarification, Guillemet clarified there was a “typo” and confirmed that multisig is a paid service. Ledger’s Multisig FAQ states that users are charged either a $10 fee per transaction or 0.05% of the transferred amount for token transfers, in addition to standard blockchain gas fees.

Multisig wallets require a specified number of signers to approve transactions, making them popular for holding large sums in DeFi. For example, Safe{Wallet}, the most well-known multisig service, reports holding over $60 billion in assets. Previously, Ledger hardware only displayed raw transaction data, leading to “blind signing” risks where users rely on potentially compromised user interfaces. Clear signing translates raw data into human-friendly information to prevent fraud. Ledger’s service supports multiple transaction types including asset transfers, governance actions, and complex contract interactions.

The introduction of fees sparked criticism. Blockchain investigator ZachXBT called the charges “excessive” for a product already paid for by customers. Pascal Caversaccio, a member of the Security Alliance, accused Ledger of creating a “single choke point” and noted the clear signing feature is not open-source, limiting independent verification. He shared his own script created after a $50 million hack at Radiant Capital, which preceded the ByBit attack. Other voices in DeFi urged Ledger to reconsider the fees, highlighting the importance of affordable security solutions.

While the service incurs no subscription fees, Ledger’s charges apply only when users perform outgoing transactions. This setup may lead users to transfer funds to the Ledger multisig without fees but pay unexpectedly at withdrawal, as noted by Micah Zoltu. Given the widespread use of multisig wallets, if all transactions used clear signing, Ledger could generate millions annually. Some community members remarked this approach contrasts with crypto’s ethos of minimizing intermediaries and costs.

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For more details, readers can visit Ledger’s official multisig site and review their blog on the ByBit Safe attack.

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