The post Understanding the Ledger library exploit and what it means for users appeared on BitcoinEthereumNews.com.

Earlier today, crypto hardware wallet manufacturer Ledger confirmed that its Connector library was compromised after attackers replaced a genuine version with a malicious file. Following the incident, several decentralized applications (dApps) faced potential exploits, with the attacker managing to siphon more than $500,000 from multiple wallets. In this report, CryptoSlate brings you a breakdown of the incident, its key events, and the implications. What happened? In an extensive post on social media platform X (formerly Twitter), Ledger explained that a former employee was phished, giving the hackers access to this former employee’s NPMJS account, a software registry owned by GitHub. Subsequently, the hackers released altered versions of the Ledger Connect Kit, which contained malicious code. This code was employed in a deceptive WalletConnect that redirects funds to a wallet controlled by the hacker. The malicious versions deceive users by displaying fake prompts upon connection to the dApp frontend, prompting inadvertent approval of fake transactions. Clicking on these prompts results in unwittingly signing a transaction that could drain the user’s wallet. However, the security breach does not directly impact the Ledger wallet or compromise seed phrases. The risk only arises once users connect their wallet to a dApp. Ledger resolves issue Ledger swiftly addressed the issue by replacing the malicious Ledger Connect Kit with an authentic version. The hardware wallet manufacturer confirmed the fix and promised a comprehensive report to be released soon. The company said. “Ledger’s technology and security teams were alerted, and a fix was deployed within 40 minutes of Ledger becoming aware. The malicious file was live for around 5 hours, however we believe the window where funds were drained was limited to a period of less than two hours.” In addition, users were reminded to Clear Sign their transactions, ensuring coherence between the information displayed on the…

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Filed under: News - @ December 15, 2023 4:14 am