The process aimed to ensure that the company handles its customers‘ information properly.
Ledger, a crypto coin company that provides various hardware wallet solutions, obtained a successful System and Organisation Controls, or SOC, Type 1 test.
Friedman LLP, a New York-based accounting firm, performed the SOC 2 Type 1 test at Ledger, according to a statement provided to Cointelegraph:
„By obtaining the SOC 2 Type 1 report, we can now provide an additional layer of verified security to our clients, ensuring that the Vault solution is secure at all times and that we have the processes in place to guarantee availability.“
A crypto-currency storage solution for large players and companies, Ledger Vault operates as a custody wing under the larger company, Ledger.
The SOC 2 test analyses a company’s security through an audit, verifying the proper handling of customer information by service based entities. „As evidence of compliance with the AICPA audit procedure, the SOC 2 Type 1 report shows that a SaaS (software as a service) company has best practices in place,“ explained a post on the RSI Security blog. „It gives potential customers the assurance that a service organisation has passed that audit procedure, and that their data is safe if they work with the SOC 2 compliant company,“ the publication added.
In contrast, a SOC 2 Type 2 test raises the bar, comparing it with more detailed standards while requiring a longer period of time to obtain approval.
During the analysis of SOC 2 Type 1, Friedman investigated Ledger on several levels, including its disaster recovery strategy and security, as well as a number of other technical details. „Receiving this certificate is an achievement, as it shows that our processes and systems are streamlined, documented and generally secure,“ said Ledger’s chief technology officer, Charles Guillemet, in the statement. Next year, the company aims to achieve SOC 2 Type 2 approval, according to comments in the statement from Ledger CEO Pascal Gauthier.
The green light for the examination comes after Ledger suffered a database leak several months ago, which exposed its customer information. The popular hardware wallet company fixed the root of the problem after the damaging incident.
The Gemini crypto coin exchange announced that it had similarly passed its SOC 2 Type 2 test in January 2020.