Ledger CEO Addresses Recent Hack, Assures Enhanced Security Measures

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Ledger CEO Addresses Recent Hack, Assures Enhanced Security Measures; SEC Chair Gensler Suggests Grayscale Ruling Prompted Reevaluation of Bitcoin ETFs; Solana Phone Sales Surge Amidst Bonk Memecoin Craze

What Happened in Ledger Hack?

Pascal Gauthier, CEO of Ledger, has responded to the December 14 hack incident involving the wallet provider’s Javascript connector library. In a blog post, Gauthier described the hack as an “isolated incident” and reassured users that stronger security controls would be implemented to prevent such occurrences in the future.

The exploit, which targeted Ledger’s Javascript connector library, ran for less than two hours and was promptly deactivated within 40 minutes of discovery. Gauthier clarified that the attack was limited to third-party decentralized applications (DApps) and did not impact Ledger hardware or the Ledger Live platform.

The CEO attributed the incident to a phishing scam that targeted a former employee, whose compromised identity was allegedly left in the hacked code. Gauthier emphasized the standard practice at Ledger, highlighting that no single person can deploy code without multiple reviews, access controls, internal checks, and code multi-signatures.

Gauthier acknowledged the hack as an unfortunate but isolated event, pledging that Ledger would implement more robust security controls. Moving forward, the company aims to connect its build pipeline to ensure strict software supply chain security within the NPM distribution channel.

Despite the incident, Gauthier assured users that Ledger Connect Kit 1.1.8 remains safe and ready for use. The initial estimate of the hack’s size was $484,000, but Web3 security service Blockaid later reported an increase to $504,000 by 8:00 pm UTC. 

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Any Ethereum Virtual Machine user interacting with affected DApps could be affected by the hack, according to Blockaid. Gauthier expressed gratitude to WalletConnect, Tether, Chainalysis, and ZachXBT for their assistance during the incident.

SEC Chair Gensler Suggests Grayscale Ruling Prompted Reevaluation of Bitcoin ETFs

Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC), has hinted at a potential shift in the regulator’s approach to spot Bitcoin exchange-traded products (ETFs) following a recent court decision involving Grayscale.

In an interview with CNBC on December 14, Gensler acknowledged the current backlog of pending spot Bitcoin ETF applications, revealing that the SEC is currently processing “between eight and a dozen filings.” He mentioned the SEC’s prior denials of such applications but suggested a possible change in the regulatory stance, stating, “So we’re taking a new look at this based upon those court rulings.”

When questioned about whether he was specifically referring to Grayscale, Gensler avoided providing a direct answer. Instead, he emphasized that the SEC operates within the framework of laws passed by Congress and the interpretation of these laws by the courts.

In August, a federal judge overturned the SEC’s decision to reject Grayscale Investments’ ETF offering through its Bitcoin Trust.

Several major asset managers, including BlackRock, Fidelity, Grayscale, Invesco, VanEck, and Valkyrie, are currently vying to launch spot Bitcoin ETFs. While all applications have experienced delays, analysts anticipate a potential batch approval in early January.

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In a separate interview with Bloomberg on the same day, Gensler sidestepped questions about the number of spot Bitcoin product filings. Instead, he highlighted recent changes in the U.S. treasury market as a focal point for the SEC’s current priorities.

Solana Phone Sales Surge Amidst Bonk Memecoin Craze

Sales of Solana’s crypto phone have experienced a significant surge as enthusiasts rush to capitalize on the recent price spike of the Solana memecoin, Bonk (BONK), which has witnessed a remarkable 1100% increase in the last 30 days.

The Solana phone, launched on May 8 this year, has seen a boost in adoption as new owners were eligible for a free 30 million BONK airdrop. The recent surge in BONK’s price created an intriguing arbitrage opportunity for buyers, leading to a surge in Solana phone sales.

Solana co-founder Raj Gokal revealed in a Dec. 15 post that Solana phone sales have increased more than tenfold in the past 48 hours and are now expected to sell out before the new year. The surge in BONK’s price has made the 30 million airdrop worth a staggering $877, surpassing the phone’s $599 price tag.

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Bonk has exhibited a remarkable 1,100% gain in the last 30 days, according to CoinGecko data, overtaking the market cap of competitor memecoin Pepe. The volatility of memecoins is well-known, and the recent price performance of Bonk has added to the market’s unpredictability.

Solana's Saga phone has seen "millions of dollars worth" of sales in the past 24 hours. Source: Solana Mobile

The strong sales momentum prompted Solana Mobile to announce restrictions on future orders, limiting them to one mobile device per household.

This surge in sales marks a notable turnaround for the Solana device, which had struggled to gain traction. Solana co-founder Anatoly Yakavenko even suggested raising the price of the Saga phone following the increased buying activity. The Saga’s price had previously been reduced from $999 to $599 in August due to sluggish sales.

Yakovenko discussed the challenges faced by the Saga phone on Laura Shin’s Unchained Podcast on Dec. 5, acknowledging the device’s lackluster performance. He also admitted to using his Solana Saga as his “NFT phone,” rather than as his primary mobile device.

Ledger CEO Addresses Recent Hack, Assures Enhanced Security Measures; SEC Chair Gensler Suggests Grayscale Ruling Prompted Reevaluation of Bitcoin ETFs; Solana Phone Sales Surge Amidst Bonk Memecoin Craze