Ledger has rolled out smart contract proxy detection, a production feature that identifies proxy patterns during clear signing and uses transaction simulation to reveal the actual logic contract behind a proxy call.
The hardware wallet maker published its technical explanation, titled “Proxy Support at Ledger,” on June 17, 2026. The feature is already live and protects every clear-signed transaction processed through Ledger devices. For related coverage, see KnoxNet Introduces the First Dual-Domain Layer-1 Privacy Network Where the Internet Is Optional.
How Ledger’s proxy detection works
A smart contract proxy is a contract that delegates execution to a separate “logic” or “implementation” contract. The proxy holds the storage and user-facing address, while the actual code lives elsewhere. This separation enables upgradeability, but it also means the contract a user interacts with today could behave differently tomorrow if its implementation is swapped. For related coverage, see Zesty Introduces Crypto Trading for Chilean Investors via Alpaca Partnership.
Ledger’s system runs full-node transaction simulation traces before a user signs. These traces surface hidden delegatecall activity, the EVM opcode that lets a proxy execute another contract’s code in its own storage context. By catching this pattern, Ledger can show users which logic contract will actually run, not just the proxy address they see on-screen. For related coverage, see Bitcoin News Daily, June 21, 2026: Musk Pushes Direct Payments.
The company frames this as a detection layer rather than a guarantee of contract safety. Users still need to evaluate the underlying logic contract, but they now have visibility into whether a proxy is involved at all.
The Bybit exploit that motivated the rollout
Ledger explicitly ties the feature to the February 21, 2025 Bybit/Safe exploit. In a separate post, the company detailed how attackers upgraded Bybit’s Safe contract to point to attacker-controlled logic and drained over 401,000 ETH plus staked tokens.
That attack exploited exactly the blind spot Ledger’s new feature addresses. The signers approved a transaction that appeared to interact with a known Safe multisig proxy, but the underlying implementation had been swapped to malicious code. Without simulation-based detection, the proxy redirect was invisible at signing time.
The incident remains one of the largest single exploits in crypto history. Bybit has since expanded its product offerings in MENA, but the security lessons from the attack continue to shape how wallet providers approach transaction transparency.
Why proxy visibility matters for everyday users
Most crypto users rely on wallet prompts to decide whether to approve a transaction. When a proxy contract is involved, the address displayed may tell users nothing about the code that will actually execute. This gap between what users see and what runs on-chain is the core problem proxy detection aims to close.
Upgradeable contracts are widespread across Ethereum DeFi. Protocols use them to patch bugs and add features without redeploying to a new address. But the same mechanism that enables upgrades also enables the kind of redirect attack seen in the Bybit case. Surfacing proxy status during signing gives users one more data point for risk assessment.
Ledger positions the feature as complementary to existing tools. Etherscan, for instance, already offers a proxy contract verification page that links proxy addresses to their current implementation ABIs. Ledger’s approach differs by catching proxy behavior at the moment of signing, before a user commits to a transaction.
What this signals for wallet security standards
Wallet providers have been steadily adding richer context to transaction prompts. Clear signing, simulation previews, and phishing warnings have become table stakes over the past two years. Proxy detection fits this trajectory, extending transparency deeper into the smart contract layer.
The broader push toward stronger DeFi security measures is visible across ecosystems. As more protocols adopt proxy-based architectures, the expectation that wallets surface implementation details will likely grow. Ledger’s move sets a reference point that competitors may need to match.
Ethereum traded near $1,675 at the time of this report, with the broader market sitting in “Extreme Fear” territory at a Fear & Greed Index score of 17. Security tooling improvements like proxy detection carry weight in this environment, where user confidence in on-chain interactions remains fragile.
For users, the practical takeaway is straightforward: Ledger’s clear-signed transactions now flag when a proxy contract is involved and identify the actual logic contract behind it. The feature does not replace due diligence, but it removes one layer of opacity from a signing process that has historically asked users to trust what they cannot see.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
