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
— 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.
Ledger reveals updates about the issue
The Ledger CEO said:
Ledger CEO, Pascal Gauthier, explains that Ledger Recover would give the state the ability to recover your #Bitcoin private keys in the event of a subpoena. pic.twitter.com/KWaXcgtMqr
— The ₿itcoin Therapist (@TheBTCTherapist) May 22, 2023
Someone commented: “Ledger is now doing a podcast tour to tell the world they plan to hand over your private keys if a government asks them. I repeat, do not use Ledger. Migrate away now. They’re either idiots or feds, either scenario is wildly dangerous for their users.”
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
— hodlonaut 13%er 🌮⚡🔑 🐝 (@hodlonaut) May 16, 2023
Stay tuned for more details about this.
