Connect Kit Hack Triggers Criticism About Ledger Security Laws

Recently, the Connect Kit exploit has come under scrutiny, prompting criticism of the company’s security protocols and raising questions about the security infrastructure of  Ledger. Explaining how the hack happened, analysis by Jamie Redman from Bitcoin.com says that Ledger security protocol flaws that allowed for a phishing attack on a former employee made the breach possible.Malicious code was then added to Ledger’s NPMJS (Node Package Manager JavaScript).

The Connect Kit, a collection of resources offered by Ledger to developers for the purpose of developing apps and interacting with Ledger devices, became vulnerable as a result of the compromised code. Paolo Ardoino, Tether CEO, while commenting on the issue, notified the cryptocurrency community that Tether froze the hacker’s wallet address.

Report says that many companies and protocols deactivated their front-end user interfaces as a precautionary measure to such an occurrence. Some of the companies that took precautionary measures were Zapper, Sushi, Revokecash, Lido, Sushi, Balancer, as well as Opensea: a non-fungible token (NFT) marketplace.

Ledger CEO Acknowledged Security Breach, Arkham Intelligence Announces A Bounty 

CEO of Ledger Pascal Gauthier swiftly acknowledged the security breach and provided an outline of actions to improve security and fix vulnerabilities. In order to stop such exploits from future reoccurrence, Gauthier underlined the significance of taking lessons from the event and working to strengthen the security framework.

To protect user funds and information, the company has promised to thoroughly review its security protocols and make the required adjustments. Ledger has established a reputation for offering safe cryptocurrency storage options.

Analysis from Arkham Intelligence has reported that there’s currently a bounty placed on the perpetrators of the popular  Ledger Library Drainer hack. The so called exploit which is associated to the hacker by the name “Angel Drainer,” led to a loss of more than $500,000 from various drops.

The analysis said that the bounty includes uncovering the perpetrator Angel Drainer’s identity, information that may lead to the recovery of the funds, and also any information that may lead to Angel Drainer’s post-incident KYC exchange deposits. Arkham also announced same bounty on the Okx Dex incident, which lead to the loss of  $2.7 million.

Lefteris Karapetsas Blasts Larger, Faults The Management For The Breach

Debating the current development by the online debates among the cryptocurrency community says that the incident acts as a spark for discussions about best practices, teamwork on security projects, and the creation of standardized protocols within the cryptocurrency community.

Ledger has suffered as a result of the Connect Kit hack, but it also offers the industry as a whole a chance to grow, change, and improve security protocols. When Ledger hack happed, many dapps and cryptocurrency companies took precautionary measures to avoid replicating the same scenario.

Lefteris Karapetsas, a freelance developer, has come out to criticize the approach taken by Ledger. Karapetsas blustered developers at Ledger, inquiring why they would create the worldaa biggest security-sensitive library to (what he termed) ‘load from CDN’ without making the users wait for the dapps to be updated?

Meanwhile, a cryptocurrency influencer, and the CTO of Casa Jameson Lopp, have mentioned three major flops discovered in the Ledger. According to Jameson, the Ledger was blindly generating codes without pinning a particular checksum and version, thereby failing to enforce the ‘2 man rules’ which is presently surrounding the code deployment and review without the previous employee access.