Crypto Investors Sue TaskUs, Shopify, and Ledger Over New Data Breach

Key Insights:

• TaskUs, Shopify, and Ledger face class-action suit over 2020 user data breach.
• The latest breach led to the loss of crypto assets as illicit activity continues to grab the news headlines.
• Regulatory scrutiny will intensify as negative news hits the crypto news wires.

Illicit activity has been on the rise since the start of the year, leading to the theft of Bitcoin (BTC) and other digital assets. Phishing and ransomware attacks have drawn plenty of attention.

With increased regulatory scrutiny and sanctions on Russia, scrutiny has intensified as crypto firms fail to curb the upward trend in cybercriminal attacks.

Hacks are not just limited to the crypto market but have extended to NFT marketplaces and even the Metaverse.

Shopify and Ledger Hit with Class Action Complaint over Data Breach

On Friday, crypto investors reportedly filed a class-action complaint against TaskUs, Shopify, and Ledger, a crypto hard wallet maker.

“The complaint seeks damages for the failure to exercise reasonable care in securing and safeguarding consumer information in connection with a massive 2020 data breach impacting Ledger SAS cryptocurrency hardware wallets.”

According to the complaint, the breach led to the release of about 272,000 pieces of personal data from Ledger and more than 1 million subscriber newsletters.

Shopify and TaskUs were reportedly aware of the data breach for more than a week before alerting customers to the latest hack.

Ledger sells Ledger wallets via its e-commerce website on Shopify. As a result of the data breach, cybercriminals targeted individuals with phishing attacks. The attacks led to the irreversible transfers of cryptocurrencies to cybercriminal accounts in the United States and overseas.

Illicit Activity Shows no Signs of Abating Despite Regulatory Scrutiny

Phishing attacks have been on the rise. There have been two major attacks in the last seven days alone.

ApeCoin’s value sank last week following a BAYC confirmation of a discord phishing attack that led to the theft of a Mutant Ape Yacht Club (MAYC) NFT.

Over the weekend, crypto hardware wallet firm Trezor issued a warning about a newsletter phishing attack targeting its users.

For Shopify and Ledger, the lawsuit returned the focus to a second data breach in 2021. Just weeks after the 2020 breach, Shopify leaked the personal data of another 20,000 Ledger customers.

With illicit activity rising, governments and regulators may look to force platforms to tighten their ships or face harsh penalties.