“Ledger Wallet Stirs Up Controversy with Secret Recovery Phrase Service, Sparking Response from Cryptocurrency Community”

Ledger, the global hardware cryptocurrency wallet provider, has come under fire from the crypto community for its latest feature, Ledger Recover. The service aims to provide an additional layer of protection to users by offering a retrieval solution in case they misplace their seed phrase. Ledger Recover employs a technique where the seed phrase is divided into three encrypted fragments, each sent to different external entities, and can be reconstructed upon decryption. The wallet provider has clarified that the service is optional and users can continue managing their recovery phrase themselves. However, Mudit Gupta, the chief information security officer at Polygon Labs, and others have expressed concerns that this feature exposes users to vulnerabilities, as the encrypted keys parts are sent to three corporations that could reconstruct the keys. Notably, the 2020 Ledger data leak, which exposed users’ personal information and placed them at risk, has led many to question Ledger’s data security capabilities. Chris Dunn, a Bitcoin investor and podcaster, believes that this feature is a backdoor into seed phrases and suggests users say goodbye to Ledger. Ledger has reportedly sold an estimated 4.5 million wallets and introduced six distinct wallet models since its inception in 2014.

J-S Tremblay
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...

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