Ledger Under Fire Following Latest Feature

It’s been just revealed that Ledger is now under fire following the introduction of their latest feature. Check out the new reports below.

Accoridng 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.

It’s also important that we mention the fact that the most significant criticism that the wallet manufacturer has received has had to do with data breaches.

The same online pubcalition mentioned above notes the fact that back in December 2020, the physical addresses of 270,000 Ledger owners were stolen, with this following another security breach in July 2020. The hacker shared the information for free on a forum.

It’s been also revealed that hackers used that information to target victims in an extortion campaign. Ledger responded to the incident with its CEO saying that the company “deeply regret this situation.”

“He assuaged users by emphasizing that there was no correlation between the data and the funds in their wallets. The crypto community, however, was still quite riled.”

Check out the original details about the issue in the article posted by the online publication.