Crypto hardware wallet provider Ledger is facing criticism from its users following a controversial update that has raised concerns about the manufacturer’s security. The company claims that the new functionality is safe and optional, but security experts and crypto holders are already distancing themselves from the company. The update in question is Ledger’s new “Ledger Recover” service, a subscription service for Nano X device holders that allows them to recover their crypto even if they’ve lost both their wallet device and recovery phrase. The service works by duplicating the device’s recovery phrase on the device, encrypting the copy, fragmenting it into three parts, and securing it with Ledger, Coincover, and a third unnamed provider. To access the service, users must verify their identity using an ID document and a selfie recording. Despite Ledger’s assurances, concerns remain that the update exposes users’ private keys to external access. Community members have urged users to migrate away from Ledger wallets immediately. Ledger has compromised user security in the past by accidentally leaking personal information about over 270,000 customers in July 2020. Sales of Ledger wallets spiked in the aftermath of FTX’s collapse in November, as investors sought to secure their own crypto safely without trusting centralized intermediaries.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
View J-S Tremblay website
