Tag Archives: crypto data leak

Advanced Summary

A sequence of breaches that reveals a security-model problem

Since 2017, Ledger has faced a series of major incidents: seed phrase recovery attacks, firmware replacement, physical device modifications, application-level vulnerabilities (Monero), the massive 2020 customer database leak, the 2023 software supply-chain compromise, and the 2026 Global-e order-data leak. Taken separately, each event can be labeled an “incident.” Taken together, they reveal a security model problem.

The common denominator is not low-level cryptography, but the recurring necessity for critical secrets (seed phrases, private keys, identity-related metadata) to pass at some point through a non-sovereign environment: proprietary firmware, the host computer, connected applications, update servers, or an e-commerce partner.

From component security to ecosystem vulnerability

Ledger historically relied on the robustness of the hardware component itself. But from 2020 onward, the attack surface shifted to the peripheral ecosystem: customer databases, logistics services, software dependencies, user interfaces, notifications, and support channels.

The 2026 Global-e leak marks a turning point. Even without direct private-key compromise, exposure of delivery and order metadata turns users into persistent targets: ultra-targeted phishing, “delivery” social engineering, doxxing, and, in extreme cases, physical threats. Security is no longer only digital — it becomes civil and personal.

Why phishing and hybrid attacks become inevitable

Once a user’s real identity is correlated with crypto ownership, phishing stops being opportunistic. It becomes industrial and personalized.

BITB attacks, fake updates, fake delivery incidents, or “compliance” scams exploit less a technical bug than the human factor, made vulnerable by exposed metadata.

In this context, hardening firmware or adding software warnings is not sufficient. The problem is not cryptographic signing — it is that the secret or its holder becomes identifiable, traceable, or remotely reachable.

Paradigm shift: from trust to hardware proof

Facing these structural limits, some approaches do not attempt to strengthen transaction signing — they aim to remove critical secrets from any connected ecosystem. Freemindtronic’s sovereign alternatives follow the opposite logic: instead of securing a connected stack, they seek to radically reduce dependencies. NFC HSM devices are battery-less, cable-less, and network-port-less, requiring no account, no server, and no cloud synchronization.

This paradigm shift is embodied by air-gap secret sharing: critical secrets (seed phrases, private keys, credentials for hot wallets or proprietary systems) can be transferred hardware → hardware from one SeedNFC HSM to another, via an RSA-4096 encrypted QR code using the recipient’s public key — without blockchain, without server, and without any transaction-signing function.

A structural answer to the failures observed since 2017

Where Ledger failures rely on supply chains, updates, and commercial relationships, sovereign architectures remove these breaking points by design. There is nothing to hack remotely, nothing to divert in a cloud, and nothing to extract from a third-party server. Even if visually exposed, an encrypted QR code remains unusable without physical possession of the recipient HSM.

This model does not promise “magic” security. It imposes deliberate responsibility: irreversibility of transfers, physical control, and operational discipline. But it eliminates the systemic attack vectors that have repeatedly surfaced since 2017.

Ledger Security Breaches: Monero Application Vulnerability (March 2019)

Not all cryptocurrencies interact with hardware wallets in the same way.
In March 2019, a critical vulnerability was discovered in the Monero (XMR) application for Ledger devices.
Unlike the 2018 physical attacks, this flaw was located in the communication protocol between the Ledger device and the Monero desktop client.

How Was the Vulnerability Exploited?

The flaw allowed a malicious or compromised Monero client to send manipulated transaction data to the Ledger device.

By exploiting a bug in the handling of change outputs, an attacker could:

• redirect funds to an address under their control without the user noticing on the Ledger screen, or
• under specific and controlled conditions, reconstruct the Monero private spend key by observing multiple device–host exchanges.

In this scenario, the hardware wallet signed cryptographically valid transactions based on manipulated inputs originating from the host software.

Incident Summary

• Potentially affected users: Monero (XMR) holders using Ledger Nano S or Nano X
• Reported loss: One documented case of approximately 1,600 XMR (~USD 83,000 at the time)
• Date of discovery: March 4, 2019
• Discoverers: Monero community & Ledger Donjon
• Patch released: March 6, 2019 (Monero app version 1.5.1)

Attack Scenarios

• Compromised software: The user interacts with an infected or unofficial Monero GUI wallet. During a legitimate transaction, the client silently alters transaction parameters to drain funds.
• Key reconstruction (controlled scenario): An attacker with malware on the host computer could theoretically reconstruct the Monero private spend key by intercepting and correlating multiple device–PC exchanges.

Important clarification: This incident did not involve a mass leak of private keys.
It demonstrated that, under specific conditions and with a compromised host environment, private key compromise was technically possible due to application-layer design flaws.

Structural “Blind Signing” Vulnerability: Signing in the Dark by Design (Permanent)

Blind Signing is not a temporary flaw nor a bug that can be patched with a firmware update.
It is a structural design limitation inherent to hardware wallets when confronted with the growing complexity of smart contracts.

As of 2026, it represents the #1 fund-theft vector in Web3, ahead of classic technical exploits.

Why Blind Signing Is Fundamentally Dangerous

A hardware wallet is supposed to enable conscious and verifiable validation of sensitive operations.
With Blind Signing, however, the device is unable to render the real intent of the contract being signed.

The user is typically presented with:

• a generic “Data Present” message
• unreadable hexadecimal strings
• or a partial, non-human-interpretable description

The signature becomes an act of faith.
The user no longer validates a understood action, but complies with an opaque interface.

An Attack by Consent, Not by Circumvention

Unlike the 2018 Ledger incidents (seed recovery, firmware replacement, PCB modification),
Blind Signing does not attempt to break the hardware security.

It turns it against the user.

Everything is:

• cryptographically valid
• signed with the genuine private key
• irreversible on the blockchain

There is no detectable malware, no key extraction, no firmware compromise.
The loss is legally and technically attributable to the signature itself.

Impact and Scope

• Affected users: 100% of DeFi / NFT / Web3 users
• Estimated losses: hundreds of millions of USD (cumulative)
• Status: permanent and systemic risk
• Root cause: inability to verify signed intent

Typical Attack Scenarios

• Wallet drainers: a fake mint or airdrop leads to signing a contract that grants unlimited asset transfer rights.
• Hidden infinite approvals: the user unknowingly signs a permanent authorization. The wallet is emptied later, without any further interaction.

Conclusion:
Blind Signing marks a critical rupture: the private key remains protected, but effective security disappears.

The question is no longer “Is my wallet secure?”, but:

“Am I able to prove what I am signing?”

Ledger Security Breaches: The Connect Kit Attack (December 2023)

The Connect Kit is a software that allows users to manage their cryptocurrencies from their computer or smartphone, by connecting to their Ledger device. It allows to check the balance, send and receive cryptocurrencies, and access services such as staking or swap.

The Connect Kit breach was discovered by the security teams of Ledger in December 2023. It was due to a vulnerability in a third-party component used by the Connect Kit. This component, called Electron, is a framework that allows to create desktop applications with web technologies. The version used by the Connect Kit was not up to date, and had a breach that allowed hackers to execute arbitrary code on the update server of the Connect Kit.

Technical validation: This type of supply chain attack is classified under CWE-494 (Download of Code Without Integrity Check). You can monitor similar hardware wallet vulnerabilities on the MITRE CVE Database.

How did hackers exploit the Ledger Security Breaches?

The hackers took advantage of this breach to inject malicious code into the update server of the Connect Kit. This malicious code was intended to be downloaded and executed by the users who updated their Connect Kit software. The malicious code aimed to steal the sensitive information of the users, such as their private keys, passwords, email addresses, or phone numbers.

Simplified diagram of the attack

Statistics on the breach

• Number of potentially affected users: about 10,000
• Total amount of potentially stolen funds: unknown
• Date of discovery of the breach by Ledger: December 14, 2023
• Author of the discovery of the breach: Pierre Noizat, director of security at Ledger
• Date of publication of the fix by Ledger: December 15, 2023

Scenarios of hacker attacks

• Scenario of remote access: The hacker needs to trick the user into updating their Connect Kit software, either by sending a fake notification, a phishing email, or a malicious link. The hacker then needs to download and execute the malicious code on the user’s device, either by exploiting a vulnerability or by asking the user’s permission. The hacker can then access the user’s information or funds.
• Scenario of keyboard: The hacker needs to install a keylogger on the user’s device, either by using the malicious code or by another means. The keylogger can record the keystrokes of the user, and send them to the hacker. The hacker can then use the user’s passwords, PIN codes, or seed phrases to access their funds.
• Scenario of screen: The hacker needs to install a screen recorder on the user’s device, either by using the malicious code or by another means. The screen recorder can capture the screen of the user, and send it to the hacker. The hacker can then use the user’s QR codes, addresses, or transaction confirmations to steal or modify their funds.

Sources

• [https://thehackernews.com/2023/12/crypto-hardware-wallet-ledgers-supply.html] published on December 15, 2023.

Ledger Security Breaches: The Data Leak (December 2020)

The database is the system that stores the information of Ledger customers, such as their names, addresses, phone numbers and email addresses. It must be protected against unauthorized access, which could compromise the privacy of customers. In December 2020, Ledger revealed that a breach in its database had exposed the logistical and relational metadata (delivery address, purchase history, identity correlation) of 292,000 customers, including 9,500 in France.

How did hackers exploit the breach?

The breach had been exploited by a hacker in June 2020, who had managed to access the database via a poorly configured API key. The hacker had then published the stolen data on an online forum, making them accessible to everyone. Ledger customers were then victims of phishing attempts, harassment, or threats from other hackers, who sought to obtain their private keys or funds.

Simplified diagram of the attack :

Statistics on the breach

• Number of affected users: 292,000, including 9,500 in France
• Total amount of potentially stolen funds: unknown
• Date of discovery of the breach by Ledger: June 25, 2020
• Author of the discovery of the breach: Ledger, after being notified by a researcher
• Date of publication of the fix by Ledger: July 14, 2020

Scenarios of hacker attacks

• Scenario of phishing: The hacker sends an email or a text message to the user, pretending to be Ledger or another trusted entity. The hacker asks the user to click on a link, enter their credentials, or update their device. The hacker then steals the user’s information or funds.
• Scenario of harassment: The hacker calls or visits the user, using their logistical and relational metadata (delivery address, purchase history, identity correlation) to intimidate them. The hacker threatens the user to reveal their identity, harm them, or steal their funds, unless they pay a ransom or give their private keys.
• Scenario of threats: The hacker uses the user’s logistical and relational metadata (delivery address, purchase history, identity correlation) to find their social media accounts, family members, or friends. The hacker then sends messages or posts to the user or their contacts, threatening to harm them or expose their cryptocurrency activities, unless they comply with their demands.

Sources:

• [1] Ledger Blog : Ledger Data Breach: A Cybersecurity Update (January 2021)

Ledger Security Breaches: The Global-e Data Leak (January 2026)

In January 2026, Ledger disclosed a new breach caused by its e-commerce partner Global-e.
Attackers compromised Global-e’s cloud systems, exposing customer names, email addresses, and delivery contact details used for online orders.

Unlike previous incidents, no seed phrases, private keys, or payment card data were compromised.
However, this leak significantly increased the risk of targeted phishing, doxxing, and long-term social engineering attacks against Ledger customers.

Official Sources & Expert References

• [1] Ledger Support: Global-e Incident Report (January 2026)
• [2] Europol (IOCTA): Stolen credential resale markets.
• [3] ANSSI / Cybermalveillance: Official guidance on data-leak risks
• [4] CoinDesk: Ledger warns of phishing risks after partner breach (January 2026).

Escalation of Threats: From Delivery Phishing to Physical Coercion

The Global-e delivery-data leak does not merely enable email scams.
It fuels hybrid attacks where digital exposure transitions into real-world coercion.

“A leaked Ledger delivery address acts as a marker: it tells criminals where the vault is and who holds the key.” This reality forces a fundamental rethink of how security tools are purchased and how identity is exposed.

Official Statements and Expert Sources

• [1] Ledger Support: Official Incident Report – Global-e (January 2026)
  
• [2] Ledger Blog:Ledger Data Breach: A Cybersecurity Update (January 2021)
  
• [3] Europol (IOCTA): Internet Organised Crime Threat Assessment – Resold credentials market
  
• [4] ANSSI (France): Official guidance on data leaks and extortion risks
  
• [5] CoinDesk: Ledger warns of phishing risks after partner hack (January 2026)
  
• [6] FBI (IC3):Internet Crime Complaint Center – Warnings on data breach-enabled scams
  

Global Reactions: Trust Erosion, Legal Pressure, and Community Backlash

The January 2026 Global-e order-data breach triggered a strong and immediate reaction across the global crypto ecosystem. Unlike earlier technical exploits, this incident reinforced a growing perception that the primary risk no longer lies in cryptography or hardware components, but in ecosystem-level dependencies: e-commerce partners, logistics providers, and identity-linked metadata.

Across English-speaking communities (Reddit, X, Discord, Telegram), the dominant sentiment was not surprise, but fatigue. For many users, Global-e represented the third major reminder—after 2020 and 2023—that hardware security alone does not guarantee user safety.

From Cybersecurity to Legal and Regulatory Exposure

In the United States, United Kingdom, and European Union, discussions rapidly shifted toward legal accountability and consumer protection, backed by official frameworks:

• Class action risk (US / UK): Law firms are examining collective lawsuits for negligence and failure of duty of care, citing precedents in data breach litigation.
• Regulatory scrutiny: Data-protection authorities like the CNIL (EU) and the ICO (UK) have emphasized strict third-party dependency management under GDPR.
• Law-enforcement alerts: Agencies like Cybermalveillance.gouv.fr and the FBI (IC3) emphasize that crypto-related leaks increasingly enable hybrid crime, combining cyber-fraud with real-world intimidation.

Hybrid Threat Escalation: From Phishing to Physical Coercion

The Global-e breach illustrates a broader evolution of crypto-crime: the transition from purely digital theft to hybrid attack models, a trend confirmed by the INTERPOL Global Cybercrime reports.

“A leaked delivery address does not steal funds—but it identifies the vault and the person holding the key.”

This realization has driven a growing demand for identity-minimizing, hardware-sovereign security models built on privacy-by-design principles —such as those prioritizing “Privacy by Design” by erasing all digital purchase records—to decouple asset protection from centralized logistics vulnerabilities.

Permanent Air-Gapped Secret Sharing: RSA-4096 Encrypted QR Between SeedNFC HSM Devices

SeedNFC implements a fully air-gapped secret-sharing mechanism based on an
RSA-4096 encrypted QR code using the recipient’s public key.
The recipient must be another SeedNFC HSM, ensuring that only that device can decrypt and
import the secret directly into hardware.

The QR code is only an encrypted transport container. It can be displayed locally, sent as an image,
or even shown during a video call. Without physical possession of the recipient SeedNFC HSM,
the content remains mathematically unusable.

• Offline asymmetric encryption: the secret is never exposed in plaintext inside the QR code.
• Zero infrastructure: no server, no account, no database, no cloud.
• Operational + logical air-gap: sharing remains possible without any network connectivity.

This mechanism includes no revocation, no delay, and no expiration: the transfer is permanent by design.
It enables direct hardware → hardware transfer of critical secrets (seed phrases, private keys, access credentials)
between isolated HSM devices, with no software intermediary and no blockchain involvement.

Comparison with other crypto wallets

Ledger is not the only solution to secure your cryptocurrencies. There are other options, such as other hardware wallets, software wallets, or exchanges. Each option has its advantages and disadvantages, depending on your needs and preferences.

Other Hardware Wallets

For example, other hardware wallets, such as Trezor, offer similar features and security levels as Ledger, but they may have different designs, interfaces, or prices.

Software Wallets

Software wallets, such as Exodus or Electrum, are more convenient and accessible, but they are less secure and more vulnerable to malware or hacking.

Exchanges

Exchanges, such as Coinbase or Binance, are more user-friendly and offer more services, such as trading or staking, but they are more centralized and risky, as they can be hacked, shut down, or regulated.

Securing the Future: From Vulnerability to Digital Sovereignty

Since 2017, the trajectory of Ledger Security Breaches has served as a critical case study for the entire crypto ecosystem. While Ledger remains a pioneer in hardware security, the recurring incidents—ranging from early physical exploits to the massive 2026 Global‑e data leak—demonstrate that a “secure device” is no longer enough. The threat has shifted from the chip itself to the systemic supply chain and the exposure of relational data.

The January 2026 incident confirms a persistent reality: even when private keys remain shielded, the leak of customer metadata (names, emails, and order history) creates a permanent risk of targeted phishing, doxxing, and social engineering. This highlights the inherent danger of centralized e‑commerce databases and the fragility of relying on third‑party partners for a product whose core promise is absolute security.

For Ledger users, vigilance remains the primary line of defense. Respecting strict digital hygiene—verifying every communication via the official Ledger help center and using dedicated, non‑identifiable contact info for purchases—is essential. However, for those seeking to eliminate the “third‑party risk” entirely, transitioning to battery‑less, contactless, and patented NFC HSM solutions represents the next step in achieving true digital sovereignty.

As the crypto landscape evolves through 2026 and beyond, the lesson is clear: Don’t just trust the brand—trust the architecture.

Technical Reference: The EviCore and SeedNFC architectures are based on WO2017129887 and WO2018154258 patents. Developed by Freemindtronic Andorra for absolute digital sovereignty.