Saturday, 25 May 2024

Crypto News

Crypto community reacts to Ledger wallet’s secret recovery phrase service

Crypto community reacts to Ledger wallet's secret recovery phrase service

Several crypto community members, including Ledger wallet owners, have taken to social media to express their discontent following the release of Ledger’s latest feature. The newly introduced retrieval solution for itshardware crypto wallets, known as Ledger Recover, aims to offer a safeguard in case users misplace their seed phrase.

Ledger Recover is a subscription service that allows users to utilize an additional layer of protection for their private keys. This service employs a technique where the user’s seed phrase is divided into three encrypted fragments, each sent to different external entities. Once these fragments are combined and decrypted, they can be used to reconstruct the original seed phrase. 

The wallet provider shared that Ledger Recover is an optional subscription for users who want to back up their secret recovery phrase. “You don’t have to use it, and can continue managing your recovery phrase yourself if that’s why you bought a Ledger,” the company explained. 

Nevertheless, the concept has enraged many in the crypto community, including security specialists.

Mudit Gupta, the chief information security officer at Polygon Labs, shared, “It’s a horrendous idea, DON’T enable this feature.” Gupta expanded further in his Twitter thread that “The problem here is that the encrypted keys parts are sent to 3 corporations and they can reconstruct your keys.” 

Founder and CEO of Binance, Changpeng Zhao, chimed in on Gupta’s thread, saying  “So the seed can leave the device now? Sounds like a different direction than “your keys never leave the device.” 

Bitcoin (BTC) investor and podcaster Chris Dunn shared, “First they exposed mailing address, phone numbers, and email addresses of their customers… And now they’ve put…

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