Ledger's security black history meets IPO: Why is the community questioning this fundraising?

The news that French hardware wallet manufacturer Ledger plans to go public in the US was immediately met with criticism from on-chain investigator ZachXBT. ZachXBT pointed out that Ledger has experienced multiple security incidents leading to customer data leaks and significant losses, and that current products still have quality issues. He argued that the IPO is merely a move to maximize profits. This viewpoint reflects the crypto community’s zero-tolerance attitude toward security and transparency issues.

Ledger’s Security Record Is Not Impressive

Ledger’s security problems have a long history. According to recent reports, the company’s largest security incident occurred in June 2020, when an e-commerce database was hacked. Hackers exploited a misconfigured third-party API on Ledger’s website to illegally access its e-commerce and marketing databases, resulting in the leak of over 1 million email addresses, including approximately 272,000 full personal details such as real names, mailing addresses, and phone numbers.

This leak was not just a data breach. The leaked personal information was used by hackers for targeted theft activities, ultimately causing millions of dollars in direct financial losses. This was only the most severe of Ledger’s multiple security incidents, indicating systemic issues in the company’s security defenses.

Current Product Issues Remain Unresolved

In addition to historical security breaches, Ledger’s current products also have obvious flaws. According to recent reports, the Ledger Nano X has battery issues, which is a hardware-level defect affecting user experience. Furthermore, Ledger recently announced that it will start charging a fee for the Clear Signing feature, which has sparked further skepticism within the community.

Core Questions Raised by the IPO Plan

According to reports, Ledger plans to go public in the US with a valuation potentially exceeding $4 billion. The company has partnered with Goldman Sachs, J.P. Morgan, and Barclays to facilitate this transaction, which could be completed as early as this year.

ZachXBT’s criticism centers on a key issue: announcing an IPO before fundamentally resolving these problems—does this move aim to address issues or simply to raise funds and cash out? Especially given the crypto community’s low tolerance for fraud and lack of transparency (as evidenced by recent community backlash over Trove Markets’ rug pull), the timing and approach seem somewhat inappropriate.

Industry Reflection

This incident highlights an important trend in the crypto industry: increasing market demands for security and transparency. Data suggests that loss aversion psychology dominates risk management, with markets punishing opaque behavior much faster than rewarding innovation. ZachXBT’s influence as an on-chain detective is also rising; the community’s tracking and exposure of fraudulent projects have become a powerful deterrent.

Against this backdrop, Ledger’s IPO plans may face stricter scrutiny. Investors and regulators will focus on how the company addresses its historical security issues, improves current product flaws, and enhances management transparency.

Summary

Ledger’s response to security incidents has been unsatisfactory, and current product issues remain unresolved. Announcing an IPO under these circumstances inevitably raises community concerns. While ZachXBT’s criticism is sharp, it highlights a real issue: can the fundraising plan truly improve user security and product quality, or is it merely for business gains? For Ledger, the road to IPO may be more challenging than expected.