Ledger responds to $500K hack, SEC reconsiders Bitcoin ETF bids, SafeMoon bankruptcy leads to token drop, Solana phone sales increase.
Ledger Acknowledges Vulnerability: Over $500K Stolen

Ledger Acknowledges Vulnerability: Over $500K Stolen

Dec 16, 2023
| Issue

Welcome to this week’s closing issue of Datawallet Daily. As usual, we’ve compiled the essential crypto stories from the past 24 hours just for you:

Ledger Acknowledges Vulnerability: Over $500K Stolen

Ledger CEO Pascal Gauthier addressed the recent hack in a company blog post, describing it as an “isolated incident.” The hack, which occurred on December 14th, affected Ledger’s Javascript connector library but was limited to third-party dApps. Gauthier explained that the hack was brief, active for less than two hours, and was disabled 40 minutes after its discovery.

He attributed the breach to a phishing scam that targeted a former employee, noting that Ledger’s hardware and Ledger Live platform remained secure. He also acknowledged the help from WalletConnect, Tether, Chainalysis, and ZachXBT.

The financial impact of the hack is estimated to have reached $504,000, potentially affecting Ethereum users interacting with the compromised dApps. The Ledger team has now confirmed that the exploit has been patched and interacting with applications is now safe.

Gensler: SEC Revisits Bitcoin ETF Bids, Citing Court Rulings

The Securities and Exchange Commission, led by Chair Gary Gensler, is reevaluating its stance on spot Bitcoin ETF applications, influenced by recent court directives. This development follows years of rejections, notably Grayscale Investments’ failed bid. The U.S. Court of Appeals in August required the SEC to reconsider Grayscale’s proposal, highlighting inconsistencies in the SEC’s treatment of spot versus futures-based ETFs. 

Now, major firms like BlackRock and Fidelity await decisions on their applications. Gensler, in a CNBC interview, reiterated concerns about fraud and noncompliance in crypto, underlining the necessity for robust anti-money laundering measures and safeguards against malicious actors.

SafeMoon Declares Bankruptcy, Token Drops to Historic Low

SafeMoon’s SFM token plummeted by 50%, reaching an all-time low, following the bankruptcy filing of SafeMoon US, LLC under Chapter 7. The bankruptcy documents reveal liabilities between $100,001 to $500,000 and assets ranging from $10 to $50 million. 

This development comes after the U.S. Department of Justice indicted SafeMoon executives for securities fraud, wire fraud, and money laundering. The executives allegedly misled investors, misappropriating millions. Two were arrested, while one is still at large. Concurrently, the SEC filed civil charges against SafeMoon for a fraudulent unregistered crypto securities sale. Employees affected by the bankruptcy must file claims for unpaid wages.

Surge in Solana Phone Sales Driven by BONK Arbitrage Trading

The Solana Saga phone has experienced a surge in sales, primarily driven by the BONK token airdrop. Traders are keen on the 30 million BONK token airdrop, currently valued at nearly $700, for every Saga phone owner, which costs $599. 

This surge has resulted in a significant increase in sales, with co-founder Raj Gokal noting a more than tenfold increase in the past 48 hours. The phone’s appeal is further enhanced by its blockchain capabilities and secure crypto storage. The BONK airdrop is accessible via the Solana Saga crypto-app store, contributing to the phone’s newfound popularity.

Other breaking news

Wrapping up

That wraps up today’s edition. Ledger has addressed a significant vulnerability, impacting only a few users – let’s hope it remains an isolated case. In regulatory news, Gensler gives a strong indication of potential ETF approvals as the SEC reexamines Bitcoin ETF proposals, citing recent court decisions. Meanwhile, as anticipated, SafeMoon declared bankruptcy, leading to a 50% drop in its token price. In other developments, Solana boosts Saga phone sales through the BONK token airdrop. Stay tuned for more updates!