This megathread is being created to stop the frontpage from being overrun.
Recently Ledger began launching a feature called Recover, which is an optional feature that backs up your cryptographically split seed phrase for a subscription fee. This requires submitting your identity for setup and completing an identification process for recovery.
The community has voiced many concerns about this, including:
- Ledger has had a major data breach in the past, so their inclusion as 1 of the 3 shares doesn't inspire confidence.
- Whether this feature is optional or not, it means code has been added that allows transmission of your seed phrase to the internet. Some do not agree that Ledger could be considered a cold wallet anymore.
- Parts of the Ledger architecture are not open source. This has not changed with Recover, but big changes in closed source software can raise questions and add trust back into a system that was meant to be trustless.
- The 3 companies could be subject to hackers or government pressure.
- Identity and information based verification has weakened over time as data breaches continue to occur. Even the KYC systems allegedly meant to protect you can end up leaking your data.
- This is confusing to people who have been told to never upload their seed to the internet and (depending on UI) “Ledger will never ask for your seed”. Educating and training people on good security practices in a consistent way is critical.
Please keep in mind that this is a developing story and many details are unknown. As more information comes out, we would be happy to add it here.
- Ledger Recovery FAQ
- Twitter Spaces AMA
- PSA: Ledger is officially a hot wallet. It can expose your seed phrase to third parties! (Confirmed on their sub)
- If you have a Ledger Wallet, be aware of the latest Firmware update 2.2.1
- Seed phrases should never be exposed on the internet, especially hardware wallet seeds
- WTF Ledger? This is a disaster waiting to happen… The new Ledger Nano X Firmware introduces an option to let them backup your seed.
- Ledger CTO official statement – “no backdoor, ledger does not have access to your secret recovery phrase”
- Hey Ledger, I have a great business opportunity for you.
- Ledger Confirms Their Hardware Wallets Have A Backdoor To Send A User's Seed To Companies, Over The Internet
- With the Ledger fiasco — how do companies / whales manage cold wallets
- I never understood why so many like the ledger and with a recently added “features” it only confirms what I knew.
- Ledger Under Fire for ‘Recover’: A New Cloud-Based Seed Phrase Backup Feature