Shopify Faces Another Lawsuit Over Ledger Data Breach

Republished By Plato

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Shopify faces another lawsuit over the ledger data breach and the e-commerce giant seems to be in the hot seat once again for making the users available to malicious actors so let’s read more in today’s latest blockchain news.

The e-commerce platform Shopify faces another lawsuit over the Ledger data breach as users of the wallet filed a class-action lawsuit for its part in failing to prevent such a data breach in 2020. the suit was filed in the US District Court of Delaware and alleged that Shopify profoundly and repeatedly failed to protect its customers’ identities. Shopify and TaskUs are being held responsible by users for leaking personal information of the Ledger wallet buyers despite the marketing promises assuring the full security of the platform. The plaintiffs claim that TaskUs and Shopify knew about the data breach for a week before notifying the customers. They are now asking for the same type of information leaked to be disclosed by Shopify and Ledger for a monetary reward that covers actual and punitive damages.

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France-based LEdger is also included in the case for the marketing claims promising customer security. The complaint stated that the Ledger initially denied that the compromise of PII occurred but later had to backtrack and refer to the leak and to Shopify in an email notification as the complaint stated:

“Despite the repeated promises and worldwide advertising campaign touting unmatched security for its customers, Ledger—and its data processing vendors, Shopify and TaskUs—repeatedly and profoundly failed to protect its customers’ identities, causing targeted attacks on thousands of customers’ crypto-assets and causing Class members to receive far less security than they thought they had purchased with their Ledger Wallets.”

Hardware wallets known as cold wallets are devices that provide crypto users with added security for the private keys and seed phrases and they are marketed to be more secure than hot wallets. As the complaint alleged, Ledger used Shopify to run the website’s online store and Shopify had restricted access to the customers’ database. The platform uses TaskUs to provide customer support services and has access to Ledger’s customer data. The hackers made off with personal information from 272,000 users and over 1 million email subscribers to the newsletter in 2020. The huge phishing and intimidation campaign that targeted Ledger owners followed and resulted in some victims losing their crypto assets.

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This is not the first class-action suit filed against both Shopify and Ledger. In April 2021, a different group of complaints filed suit in California and this made allegations similar to the recent Delaware filing which Ledger and Shopify allowed, ignored, and “covered up.”

Time Stamp: April 5, 2022