The crypto company said the bug was a technical issue, not a hack, and the losses will be covered.
Ledger, one of the leading software developers for cryptocurrency wallets, experienced glitches on Friday morning UTC that triggered losses for its Ethereum Chrome application and disruptions across the Ethereum (ETH) and Ethereum Classic (ETC) network, Ledger revealed without further specifying. All financial losses will be repaid to customers, the France-based company said.
Ledger reported about the issues on Twitter and claimed that the problems are not a security breach.
“There is currently an issue on the Ledger Wallet Ethereum Chrome application, showing on screen a static address (same for all users). This looks more like a bug than a compromission. Engineering is working on it, we’ll know more soon. PLEASE USE ONLY LEDGER LIVE / MEW MEANWHILE,” the company said.
Around 10 minutes later, Ledger confirmed that there is no hack attack and reported that the technical problems came as a side effect when the company urged customers to use their recently introduced Ledger Live application instead of the Chrome extension. ETH and ETC infrastructure will be resumed at 01:00 UTC on Friday.
“Ledger will cover 100% of all losses due to the issue,” the company tweeted.
We confirm this is a bug in the Chrome app, coming from a side effect when we pushed an update to invite users to use the Ledger Live instead of the Chrome app. A wrong address was shown on the computer. Ledger will cover 100% of all losses due to the issue.
— Ledger (@LedgerHQ) August 3, 2018
The French manufacturer launched Ledger Live last month as an alternative to Chrome wallet management tools. It functions as a complement to Ledger hardware products like Nano S and Ledger Blue and connects them without the need of using browsers.
Last week, Ledger introduced two new apps, Hodl and Recovery Check 2, that aim to bring more security. Hodl allows customers to enter and check the address when receiving funds while Recovery Check 2 enables users to check their 24 word recovery phrase.
The Ledger Nano S is the most popular product of the company. It is a USB device that offers the so-called cold storage, which means that cryptocurrencies are stored in a device that is not connected to the internet. This system is believed to be more secure and reliable than the mainstream internet-connected wallets (hot storage).