Bitcoin crashes after reports of dangers in popular crypto wallets

Bitcoin (BTC) was on the rise today, but a major industry-wide exploit linked to hardware wallet giant Ledger dealt a major blow to the price. Crypto users are being warned en masse against the use of decentralized applications (dApps) due to the significant risk currently involved. What exactly is going on?

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Crypto dApps are at risk thanks to Ledger Connect Kit

The front end of several dApps using Ledger’s Connect Kit, including Zapper, SushiSwap, Balancer, and Revoke.Cash, have been compromised. The hardware wallet maker announced on the social media platform X at 2:30 p.m. that it had identified and removed a malicious version of the Ledger Connect Kit. “A legitimate version is now being pushed forward to replace the malicious file,” Ledger said.

The Ledger Connect Kit is a software library managed by Ledger that is used by many dApps. It provides developers with the tools and functionality to build software that enables secure connections to Ledger’s hardware wallets.

Ledger advises against interacting with dApps. It is further emphasized that the hardware wallets themselves or Ledger Live, the interface through which users can manage their crypto coins, are not affected by the exploit.

The library code was said to have been replaced by malware developed by hackers aiming to acquire the assets of unsuspecting users. Security company Blockaid described It was a “supply chain attack” on Ledger Connect Kit and estimated that around $150,000 worth of crypto had been lost in the last few hours.

The Bitcoin price is collapsing

The Bitcoin price fell sharply within a short period of time due to the news. Shortly before Ledger informed its users, the price was around $42,900, but within 10 minutes it hit a low of just over $41,300.

This corresponds to an overall decline of at least 3.7 percent. However, Bitcoin has now risen again to a current price of $42,415.

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