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Saturday, February 4, 2023

Shopify (NYSE: SHOP) Faces Lawsuit from Crypto Holders over Ledger Data Breach

Shopify Inc. (NYSE: SHOP) and Ledger, a hardware wallet maker, are facing a huge legal challenge after a group of Ledger customers filed a class-action lawsuit accusing them of failing to protect against massive data breach in 2020. Shopify “repeatedly and gravely failed to secure its clients’ identities,” according to the lawsuit, which was submitted to the United States District Court of Delaware.

According to the lawsuit, the breach caused the release of about 272,000 pieces of personal data from Ledger and more than 1 million subscriber newsletters. Ledger distributes its wallets through Shopify’s e-commerce platform. Cybercriminals used phishing attempts to target individuals as a result of the data breach. The attacks resulted in irreversible cryptocurrency transfers to cybercriminal accounts in the United States and elsewhere.

Complainants are holding Shopify and its third-party data consultancy TaskUs accountable for disclosing personally-identifying information (PII) of Ledger purchasers, despite marketing assurances ensuring the absolute security of the Shopify platform. According to the claimants, Shopify and TaskUs were aware of the data breach for more than a week before informing customers. They want Ledger and Shopify to provide the precise type of information that was released, as well as a cash benefit that covers both real and punitive damages.

Furthermore, since the beginning of the year, illegal activity has increased, resulting in the robbery of Bitcoin (BTC) and other digital assets. Phishing and ransomware attacks have gotten a lot of press recently. As crypto businesses fail to halt the growing trend in cybercriminal attacks, regulatory scrutiny and sanctions against Russia have escalated. Hacks have spread beyond the crypto industry to include NFT marketplaces and possibly the Metaverse.

This isn’t the first time a class-action lawsuit has been brought against Ledger and Shopify as a result of the data leak. A different set of plaintiffs brought lawsuits in California in April 2021. In that case, Shopify and Ledger were accused of negligently allowing, carelessly ignoring, and then willfully seeking to cover up claims similar to those stated in the new Delaware filing.

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