- Crypto wallet maker Ledger faces a $500 million class action lawsuit over data breaches in 2020 and 2023.
- The lawsuit claims the company neglected customer safety and downplayed the severity of the incidents.
- A Ledger user named Douglas Kim alleges he lost nearly $2 million due to stolen personal data used in targeted attacks.
A $500 million class action lawsuit filed on August 27 accuses crypto wallet maker Ledger of neglecting customer safety after it failed to prevent and subsequently adapt to a string of data breaches. The plaintiff, Ledger user Douglas Kim, claims to have lost nearly $2 million to thieves who exploited data stolen from the company in 2020 and 2023 to target his crypto holdings.
According to the lawsuit, “Ledger demonstrated a disturbing pattern of negligent, reckless, and irresponsible behavior with regard to its security posture.” The 2020 breach leaked the personal data of almost 300,000 Ledger users, which was then uploaded to an online marketplace for stolen information.
Furthermore, a 2023 phishing attack against a Ledger employee resulted in Malware capable of redirecting crypto to attackers. The suit alleges Ledger downplayed these breaches, failed to notify customers in time, and won’t bolster its security to prevent further incidents.
Consequently, the lawsuit claims criminals used the leaked data to target users, causing substantial losses that could have been prevented. It also alleges Ledger violated New York’s Stop Hacks and Improve Electronic Data Security Act.
The lawsuit seeks between $500 million and billions in damages and demands a trial by jury. Ledger told Protos it does not comment on legal matters.
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