• Ledger released an update that introduced a new service known as Ledger Recover, which offers additional security to users of their hardware wallet.
• The update sparked significant controversy in the community due to concerns about potential backdoors and the risks involved in outsourcing storage and protection of private keys.
• Despite criticism from crypto community members and security specialists, Ledger maintains that the subscription is optional for users who prefer to manage their recovery phrases themselves.
Ledger Launches New Subscription-Based Crypto Security Service
Hardware wallet provider Ledger recently released an update that introduced a new service known as Ledger Recover. The service was designed to offer an additional layer of security to users of their hardware wallets by fragmenting and encrypting the user’s seed phrase into three distinct parts, which are then dispatched to separate external entities.
Outrage Among Crypto Community
The update sparked significant controversy in the community over concerns about a potential backdoor. Security specialists and influential figures voiced discontent with the risks involved in outsourcing storage and protection of private keys.
Ledger maintains that their subscription is optional for users who prefer to manage their recovery phrases themselves, although they emphasize its usefulness for those wanting extra layers of security.
Criticism From Security Specialists
Mudit Gupta, chief information security officer at Polygon Labs, strongly criticized the idea, emphatically advising against enabling it for any wallet user. Other experts have echoed Gupta’s sentiments while expressing similar reservations over the feature’s safety implications.
While there are benefits associated with using this service, certain aspects remain questionable given the concerns raised by prominent figures in the industry. It is important for wallet owners to educate themselves on all available options before making a decision regarding whether or not to use Ledger Recover’s subscription-based services