CoinDesk: Ledger Continues to Defend Recovery System

As you probably know by now, Ledger is a firm that’s been in the spotlight a lot during the past days. This was following their latest move, which seems to compromise users’ private keys. Check out the latest reports about this below.

According to the latest reports, it seems that Ledger has released a firmware update for Nano X cold wallet, which offers a recovery service.

The crypto community is criticizing the service because it allows Ledger to store the seed phrases so that it can offer recovery. It’s been revealed that a lot of users are especially skeptical because Ledger has experienced data breaches in the past.

This update introduces a recovery feature that allows Ledger to back up seed phrases.

– market and sell device that keeps people’s private keys secure

– experience multiple data breaches leaking customer information

– offer service to upload private keys from secure device to a cloud based service

https://t.co/df9VseSi7o

— hodlonaut 13%er (@hodlonaut) May 16, 2023

“Cold wallet manufacturer Ledger is under fire yet again, this time for releasing a firmware upgrade that includes a subscription-based feature called “Recover.” The feature is facing criticism for granting the company access to customers’ seed phrases, which undermines the purpose of a hardware wallet,” BeInCrypto.com notes.

The feature comes as a part of the 2.2.1 firmware update.

Crypto wallet maker Ledger dug itself into a deeper public relations hole on Wednesday when its support team said on Twitter that “it is and always has been possible” for the firm to extract its users’ keys.

CoinDesk noted recently in their article that while answering queries about the firm’s new wallet recovery service, Ledger Support sent a couple of bizarre tweets which would have done little to assuage its users’ concerns, suggesting that it could make its customers’ assets vulnerable in any way it wanted to, but has (thus far) not done so.

“Technically speaking it is and always has been possible to write firmware that facilitates key extraction. You have always trusted Ledger not to deploy such firmware whether you knew it or not,” it said.

“This is what future customers want,” CEO Pascal Gauthier said during a Twitter Space. “This is the way that the next hundreds of millions of people will actually onboard to crypto.”