{"id":49850,"date":"2023-05-16T15:39:21","date_gmt":"2023-05-16T19:39:21","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=49850"},"modified":"2023-05-16T15:39:24","modified_gmt":"2023-05-16T19:39:24","slug":"crypto-community-members-disagree-over-ledger-recover","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/crypto-community-members-disagree-over-ledger-recover\/","title":{"rendered":"Crypto Community Members Disagree Over Ledger Recover"},"content":{"rendered":"\n

Ledger has introduced a seed recovery service dubbed Ledger Recover. However, this development did not sit well with crypto community <\/a>members and has caused many disagreements.<\/p>\n\n\n\n

\"Crypto
Crypto Community Members Disagree Over Ledger Recover<\/figcaption><\/figure>\n\n\n\n

Several crypto community members, including Ledger wallet owners, have taken to social media to express their displeasure with Ledger's latest feature. <\/p>\n\n\n\n

Ledger Recover, the newly introduced retrieval solution for itshardware crypto wallets, seeks to protect users if they lose their seed phrase.<\/p>\n\n\n\n

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Exciting update, Ledger has a new product, Ledger Recover, that\u2019s launching soon: https:\/\/t.co\/nT1VHnnSYz\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>

\ud83e\uddf5Here\u2019s what Ledger Recover is and what it isn\u2019t, explained by @P3b7_<\/use><\/svg><\/span><\/a> & in the thread below. pic.twitter.com\/RW1w07H6pK<\/use><\/svg><\/span><\/a><\/p>— Ledger (@Ledger) May 16, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

Ledger Recover is a subscription service that enables users to secure their private keys<\/a> with additional security. <\/p>\n\n\n\n

This service employs a technique in which the user's seed phrase is split into three encrypted fragments, each transmitted to a separate external entity.<\/p>\n\n\n\n

After combining and decrypting these fragments, they can be used to reconstruct the original seed phrase.<\/p>\n\n\n\n

According to the wallet provider, Ledger Recover is an optional subscription for users who wish to back up their recovery phrase. <\/p>\n\n\n\n

“You don't have to use it, and you can continue managing your recovery phrase yourself if that's why you bought a Ledger,” the company explained.<\/p>\n\n\n\n

However, the concept has angered many in the cryptography community, including security experts.<\/p>\n\n\n\n

The chief information security officer at Polygon Labs<\/use><\/svg><\/span><\/a>, Mudit Gupta, stated, “This is a terrible idea; DO NOT enable this feature.” <\/p>\n\n\n\n

Gupta elaborated in his Twitter thread, “The issue here is that the encrypted key fragments are sent to three companies, and they can reconstruct your keys.”<\/p>\n\n\n\n

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Oh but it is secured by ID verification!

You know what else is secured by ID verification? Mobile number porting.

Do you know how many high profile sim jacking cases happen every day? Too many.

Anything secured by "ID verification" is inherently insecure. Too easy to fake.<\/p>— Mudit Gupta (@Mudit__Gupta) May 16, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

Changpeng Zhao, founder and CEO of Binance, responded to Gupta's thread by stating, “So the seed can now exit the device? Sounds different from “your keys never leave the device.”<\/p>\n\n\n\n

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Ledger just released a new update for Nano X that allows social recovery of your seed phrase.

It encrypts your seed in 3 shards and sends it to different entities that can then reconstruct the seed for you post ID verification.

It's a horrendous idea, DON'T enable this feature. pic.twitter.com\/2E1GSuYN5r<\/use><\/svg><\/span><\/a><\/p>— Mudit Gupta (@Mudit__Gupta) May 16, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

Chris Dunn, a Bitcoin investor, and podcaster, stated, “Initially, they disclosed the mailing addresses, phone numbers, and email addresses of their consumers\u2026 They have now added a backdoor to propagate phrases.<\/p>\n\n\n\n

It's time to bid farewell to Ledger,” referring to the 2020 Ledger data breach<\/a> that exposed user information.<\/p>\n\n\n\n

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First they exposed mailing address, phone numbers, and email addresses of their customers\u2026

And now they\u2019ve put a back door into seed phrases.

It\u2019s time to say goodbye to @Ledger<\/use><\/svg><\/span><\/a> \u270c\ufe0f https:\/\/t.co\/FsZw1jUt6h<\/use><\/svg><\/span><\/a><\/p>— Chris Dunn (@ChrisDunnTV) May 16, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

Crypto investor DCinvestor also referenced Ledger's previous data leak that left users exposed and vulnerable, saying, “reminder that several years ago, Ledger leaked the names and home addresses for all of their customers via a data breach..the absolute last thing you want on their servers is your private key.”<\/p>\n\n\n\n

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reminder that several years ago, Ledger leaked the name and home addresses for all of their customers via a data breach

the absolute last thing you want on their servers is your private key https:\/\/t.co\/z89xxLS6ie<\/use><\/svg><\/span><\/a><\/p>— DCinvestor (@iamDCinvestor) May 16, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

Bitcoin investor and entrepreneur Alistair Milne stated, “Sure, you could<\/em> use Ledger's new ‘Recover' service and give them [\u2026] your private keys controlling your assets as well as a copy of your ID and other personal information\u2026\u2026 but then why to bother with a hardware wallet in the first place?” His post implied that Ledger's most recent recovery service undermines self-custody with a hardware wallet.<\/p>\n\n\n\n

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Sure, you *could* use Ledger's new 'Recover' service and give them the your private keys controlling your assets as well as a copy of your ID and other personal information…

… but why then bother with a hardware wallet in the first place? pic.twitter.com\/ZI39B01gFV<\/use><\/svg><\/span><\/a><\/p>— Alistair Milne (@alistairmilne) May 16, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

In April, Ledger introduced the Ledger Nano S Plus, a wallet explicitly designed for nonfungible tokens (NFTs). The Ledger Nano S Plus <\/a>seeks to improve user safety and provide an enhanced experience for Web3 customers who frequently trade NFTs. <\/p>\n\n\n\n

This development follows Ledger's recent incorporation of “clear signing” technology via Ledger Live and further strengthens user security.<\/p>\n\n\n\n

Ledger, founded in 2014, has become a prominent global participant in the hardware cryptocurrency wallet market. <\/p>\n\n\n\n

According to reports, the company has sold approximately 4.5 million wallets and has introduced six distinct wallet variants.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ledger has introduced a seed recovery service dubbed Ledger Recover. However, this development did not sit well with crypto community members and has caused many disagreements. Several crypto community members, including Ledger wallet owners, have taken to social media to express their displeasure with Ledger’s latest feature. Ledger Recover, the newly introduced retrieval solution for […]<\/p>\n","protected":false},"author":12,"featured_media":49854,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[9546,2220,14489,14490],"class_list":["post-49850","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-crypto-community","tag-ledger","tag-ledger-recover","tag-seed-phrase"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/05\/image-42.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/49850","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=49850"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/49850\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/49854"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=49850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=49850"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=49850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}