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Data breach: Shopify and Ledger face renewed lawsuits from crypto owners

 


Global e-commerce platform Shopify and hardware wallet maker Ledger could face legal trouble. Several Ledger users have filed a class action lawsuit over Shopify's failure to prevent a massive data breach in 2020.


The lawsuit, filed Friday in U.S. District Court of Delaware , alleges that Shopify has "repeatedly and profoundly failed to protect the identities of its customers."


Shopify and its third-party data advisor TaskUs have been accused of leaking ledger buyers' personally identifiable information (PII) despite promising top-notch security on the Shopify platform.


The plaintiffs allege that Shopify and TaskUs knew about this data breach for over a week before notifying their customers. They are demanding that Ledger and Shopify disclose specific details about the leaked information and pay compensation and a penalty.

Class action lawsuit against Shopify and Ledger.

The French company Ledger is also involved in the case because its advertising promises security for its customers. The lawsuit states that Ledger "first denied that PII was compromised." The company later had to backtrack and commented on the data breach and Shopify in an email. The lawsuit states:


"Despite repeated assurances and a global publicity campaign promoting unmatched security for customers, Ledger and its data processing providers Shopify and TaskUs have repeatedly and profoundly failed to protect their customers' identities. This has led to targeted attacks on the crypto-assets of thousands customers and that the class received far less security than they were led to believe with their ledger wallets."

Hardware wallets, also known as cold wallets, are physical devices that offer crypto users extra security for their private keys and seed phrases. They are considered more secure than hot wallets and are advertised accordingly.


As the lawsuit now states, Ledger used Shopify to power its online store. Therefore, Shopify had direct access to customers' personal information stored in Ledger's database. Shopify uses TaskUs to provide customer services and therefore also had access to Ledger's customer data.


The hackers were able to steal the personal information of about 272,000 Ledger users and over 1 million email subscribers to the Ledger newsletter in 2020 . A massive wave of phishing and intimidation against ledger owners ensued, resulting in some victims losing crypto assets this way.

This isn't the first class action lawsuit related to a data breach against Ledger and Shopify. In April 2021, another California group filed a lawsuit making similar allegations.


On Saturday there was also a phishing attack against users of the hardware wallet manufacturer Trezor, after which Trezor confirmed the data breach on Twitter .

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