Ledger CEO Pushes Back on Claim Earlier Disclosure Could Have Prevented $90 Million in Losses

Ledger CEO Pascal Gauthier challenged former Mt. Gox CEO Mark Karpelès’ claim that earlier, more prominent disclosure of a reported hardware-wallet implant could have prevented more than $90 million in losses.

Karpelès argued Ledger should have raised the issue through a more visible channel than a post on Ledger Academy. He also questioned whether the company had been sufficiently alert to an advanced implant he said was designed for mass production. Karpelès had previously argued that stronger Ledger warnings could have prevented more than $90 million in losses.

The dispute follows Karpelès’ allegation that a Ledger Nano X sold through MediaMarkt contained a spy implant. Ledger asked sellers in seven Asian markets to pause sales, and MediaMarktSaturn halted Ledger sales Oct. 13 in coordination with the company. Ledger had not yet examined devices shown online.

Gauthier said Ledger had done its utmost to protect users and described the security work as difficult. He acknowledged Karpelès’ attention to the issue, urged him to stick to known facts and avoid speculation, and told him to be realistic.