Ledger Will Not Compensate Users Affected By Theft Of Personal Data

News / 22.12.2020

Ledger CEO Pascal Gauthier has revealed that the company will not provide any compensation to victims of the data hack. This comes after a major backlash from the crypto community on the wallet provider.

Personal Information Of Ledger Users Published On The Web

Ledger has been embroiled in controversy in recent days following user’s information on the internet. 272,853 physical addresses and phone numbers alongside a million email addresses from Ledger users were recently published on the web.

This revelation caused an uproar from wallet users, hinting at taking legal action against the French company. Gauthier stated that after such a major data breach, the company could not afford to compensate a million users. According to Gauthier, such action would kill the company, and it would cease to exist.

The publication of personal data triggered a wave of threatening emails. Some even warned that they would go to Ledger users’ homes to steal their cryptocurrencies unless they paid a ransom. In this regard, the CEO dismissed the threats, considering that there is little probability that they will materialize.

“There is not the greatest possibility of this happening. The database has been available since June, and no one has reported any such attack. “

Ledger Database Hack Bigger Than Initially Reported

Ledger continues to suffer from the fallout of the data breach that occurred in July. However, the wallet firm was quick to admit that its database had been compromised due to the hack. The company initially claimed that only 9,500 customers were affected by the leak of personal information.

This has proven to be false since the personal data of over 270,000 users were published on the web some days back. There are speculations that the company deliberately hid the data breach scale to prevent massive losses in sales.

Either way, Ledger is at the lowest ebb within the crypto space as more stakeholders have expressed their dismay in the company. Ledger struggles to convince the crypto-community that the measures it has taken are sufficient to prevent a re-occurrence. So be extremely careful with the emails and text messages you receive. Any message purportedly from Ledger is most likely bogus.

Olowoporoku Adeniyi is a blockchain enthusiast and crypto evangelist. Currently he loves all things crypto and covers happenings within the blockchain space.