Ledger sued for $500M over alleged data breach and crypto theft
Ledger faces a $500 million class action lawsuit over alleged data breaches and crypto thefts.Summary
Ledger is facing a proposed class action lawsuit seeking at least $500 million, filed by Douglas Kim in the U.S. District Court for the Southern District of New York. The lawsuit alleges that Ledger's poor security and failure to disclose a December 2023 incident led to customers' cryptocurrency theft and financial losses. Kim claims he lost nearly $1.95 million after scammers used leaked customer data to impersonate Ledger representatives. The complaint highlights Ledger's history of security issues, including a 2020 breach affecting over 270,000 customers, and accuses the company of inadequate data safeguards. The lawsuit brings seven causes of action, including negligence and deceptive business practices, and seeks various damages. The December 2023 incident involved a compromised Ledger Connect Kit due to a phishing attack on a former employee, allowing attackers to redirect transactions. The plaintiff proposes a nationwide class for affected U.S. customers, with potential damages estimated in the billions.
(Source：Crypto News)