Ledger Receives Strong Criticism From Community With New Function

Key Points:

• Several crypto investors expressed their dismay on social media after Ledger released a recovery tool for their hardware crypto wallets.
• According to the crypto wallet, the gadget only distributes encrypted shards of customers’ seed phrases to multiple organizations if they want to utilize the recovery service.

The cryptocurrency hardware wallet Ledger has launched a very contentious manufacturer update, prompting some users to flee the platform. The upgrade, which purportedly exposes seed words to the internet, has sparked concern and discontent in the crypto industry.

The Ledger Recover function lets users who opt-in and subscribe utilize it as a backup for their private keys. The service encrypts the user’s seed phrase and delivers it to third-party firms in three shards. When this data is merged and decrypted, it may be used to reconstitute the seed phrase.

Yet, the plan has provoked outrage among security experts and many Ledger owners. Mudit Gupta, Chief Information Security Officer at Polygon Labs, said on Twitter.

“It’s a horrendous idea, DON’T enable this feature.”

People have voiced their dissatisfaction and frustration with the upgrade on internet forums such as Reddit. Others have expressed similar sentiments, with some planning to acquire new wallets and move their crypto holdings.

In response to criticism, Ledger has said that the gadget only distributes encrypted shards of users’ seed phrases to other parties if they want to utilize the recovery service. Users may still opt to back up their own seed phrases.

The important distinction here is that the user may choose their guardians and avoid the possible security risk of supplying their passport and identification card.

This explanation, however, has done nothing to assuage the fears of those who think that the gadget should not have been able to leak data to the internet in the first place.

In related news, Web3 wallet Bitski is implementing support for hardware wallet Ledger to improve the security of its browser application.

Bitski will enable Ledger users to import their wallet credentials and use their self-custodial keys in Bitski. From there, Ledger users may securely move monies in and out of their Ledger wallets by connecting their Bitski wallets to dApps.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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