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Shopify slammed with lawsuit over negligence in Ledger breach

Shopify

TL; DR Breakdown

  • Shopify faces suit over negligence
  • Plaintiffs unhappy with late information
  • Shopify had access to Ledger’s user database

Commerce investment platform, Shopify is in deep legal waters as users have filed a lawsuit against the company. The legal action was slammed on the investment due to its negligence in the hack that affected user’s wallet on Ledger. The breach saw malicious actors gain control of user details from the platform.

Plaintiffs aggrieved over late information

According to the suit submitted to a court in Delaware, United States of America, on April 1, the users were aggrieved that the firm failed to take preventive measures. The statement reads that the firm continued to be nonchalant towards protecting user details during the time of the breach. Asides from Shopify, the lawsuit also claims that data consultants for the company, TaskUs, are also being fingered as an accomplice in the breach.

The lawsuit claims that both firms failed to do good on their promise of protecting their details despite making those promises before users made purchases of Ledger wallets. The aggrieved plaintiffs claimed that both parties already knew about the incident and did not alert them for about seven days after the incident took place. The users want to know what the malicious actors have their hands on and would also seek reward for damages in monetary terms.

Shopify had access to Ledger’s user database

Ledger is also among the group of defendants that would be charged to court for their part in the issue. The users claimed the hardware wallet did not do good on their marketing promises of complete security. The lawsuit claimed that, unlike Shopify, Ledger claimed that the issue had not occurred although it had already happened. However, the duration of days when Ledger knew and when they alerted users were not communicated.

The users claimed that the wallet company later had to revert its earlier statement and informed them of the leak before sending informing Shopify. Ledger runs a hardware wallet that seeks to provide more security and privacy for their transactions by providing them with respective seed phrases. The general market consensus sees them as more secure than others. The suit mentioned that Shopify marketed the wallet.

With that, Shopify could access users’ private details purchasing the wallets. TaskUS was involved because it provides support services to Shopify users, in turn having access to their client base. The hackers were said to have gotten access to details of massive amount of users, while emails were also compromised. Soon after, Ledger users had to fend off phishing attacks while others fell for the scam, losing funds. This lawsuit is coming off the back of the first that was filed in 2021 for the same reason.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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