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Several crypto community members, including Ledger wallet owners, have taken to social media to express their discontent following the release of Ledger\u2019s latest feature. The newly introduced retrieval solution for its hardware crypto wallets, known as Ledger Recover, aims to offer a safeguard in case users misplace their seed phrase.<\/p>\n
\nExciting update, Ledger has a new product, Ledger Recover, that\u2019s launching soon: https:\/\/t.co\/nT1VHnnSYz<\/a> <\/p>\n
Here\u2019s what Ledger Recover is and what it isn\u2019t, explained by @P3b7_<\/a> & in the thread below. pic.twitter.com\/RW1w07H6pK<\/a><\/p>\n
\u2014 Ledger (@Ledger) May 16, 2023<\/a><\/p><\/blockquote>\n
Ledger Recover is a subscription service that allows users to utilize an additional layer of protection for their private keys. This service employs a technique where the user\u2019s seed phrase is divided into three encrypted fragments, each sent to different external entities. Once these fragments are combined and decrypted, they can be used to reconstruct the original seed phrase.\u00a0<\/p>\n
The wallet provider shared that Ledger Recover is an optional subscription for users who want to back up their secret recovery phrase. \u201cYou don\u2019t have to use it, and can continue managing your recovery phrase yourself if that\u2019s why you bought a Ledger,\u201d the company explained.\u00a0<\/p>\n
Nevertheless, the concept has enraged many in the crypto community, including security specialists.<\/p>\n
Mudit Gupta, the chief information security officer at Polygon Labs, shared, \u201cIt\u2019s a horrendous idea, DON\u2019T enable this feature.\u201d Gupta expanded further in his Twitter thread that \u201c[t]he problem here is that the encrypted keys parts are sent to 3 corporations and they can reconstruct your keys.\u201d\u00a0<\/p>\n
\nThe problem here is not splitting the key in 3 parts. That’s actually good! I may or may not be doing that personally as well \ud83d\ude42<\/p>\n
The problem here is that the encrypted keys parts are sent to 3 corporations and they can reconstruct your keys.<\/p>\n
\u2014 Mudit Gupta (@Mudit__Gupta) May 16, 2023<\/a><\/p><\/blockquote>\n
Founder and CEO of Binance Changpeng Zhao chimed in on Gupta\u2019s thread, saying, \u201cSo the seed can leave the device now? Sounds like a different direction than \u2018your keys never leave the device.’\u201d\u00a0<\/p>\n
\nSo the seed can leave the device now? <\/p>\n
Sounds like a different direction than “your keys never leave the device”. ♂️<\/p>\n
\u2014 CZ Binance (@cz_binance) May 16, 2023<\/a><\/p><\/blockquote>\n
Bitcoin (BTC<\/a>) investor and podcaster Chris Dunn shared, \u201cFirst they exposed mailing address, phone numbers, and email addresses of their customers. […] And now they\u2019ve put a back door into seed phrases. It\u2019s time to say goodbye to Ledger,\u201c referencing the Ledger data leak<\/a>\u00a0that exposed users\u2019 information in 2020.<\/p>\n
\nFirst they exposed mailing address, phone numbers, and email addresses of their customers\u2026 <\/p>\n
And now they\u2019ve put a back door into seed phrases. <\/p>\n
It\u2019s time to say goodbye to @Ledger<\/a> ✌️ https:\/\/t.co\/FsZw1jUt6h<\/a><\/p>\n
\u2014 Chris Dunn (@ChrisDunnTV) May 16, 2023<\/a><\/p><\/blockquote>\n
Crypto investor DCinvestor also referenced Ledger\u2019s previous data leak <\/a>that left users exposed and vulnerable, saying, \u201creminder that several years ago, Ledger leaked the name and home addresses for all of their customers via a data breach. [T]he absolute last thing you want on their servers is your private key.\u201d<\/p>\n
\nreminder that several years ago, Ledger leaked the name and home addresses for all of their customers via a data breach<\/p>\n
the absolute last thing you want on their servers is your private key https:\/\/t.co\/z89xxLS6ie<\/a><\/p>\n
\u2014 DCinvestor (@iamDCinvestor) May 16, 2023<\/a><\/p><\/blockquote>\n
Bitcoin investor and entrepreneur Alistair Milne shared, \u201cSure, you *could* use Ledger\u2019s new \u2018Recover\u2019 service and give them […] your private keys controlling your assets as well as a copy of your ID and other personal information. […] But why then bother with a hardware wallet in the first place?\u201d His post suggested that Ledger\u2019s latest recovery service undermines the whole point of self-custody via a hard wallet.<\/p>\n
\nSure, you *could* use Ledger’s new ‘Recover’ service and give them the your private keys controlling your assets as well as a copy of your ID and other personal information…<\/p>\n
… but why then bother with a hardware wallet in the first place? pic.twitter.com\/ZI39B01gFV<\/a><\/p>\n
\u2014 Alistair Milne (@alistairmilne) May 16, 2023<\/a><\/p><\/blockquote>\n
Related:\u00a0Ledger data leak: A \u2018simple mistake\u2019 exposed 270K crypto wallet buyers<\/a><\/em><\/strong><\/p>\n
In April, Ledger launched the Ledger Nano S Plus<\/a>, a specialized wallet tailored to nonfungible tokens (NFTs). The Ledger Nano S Plus aims to enhance user safety and deliver an improved experience for Web3 customers who routinely trade NFTs. This development followed Ledger\u2019s recent integration of \u201cclear signing\u201d technology through Ledger Live, further bolstering user security measures.<\/p>\n
Established in 2014, Ledger has become a prominent global player in the realm of hardware cryptocurrency wallets. The company has reportedly sold an estimated 4.5 million wallets and introduced six distinct wallet models.<\/p>\n
Magazine<\/em><\/strong>: $3.4B of Bitcoin in a popcorn tin \u2014 The Silk Road hacker\u2019s story<\/em><\/strong><\/a><\/p>\n<\/div>\n