Ledger introduces new features, causing concern among users.
Ledger Recover is an identity-based subscription service that allows you to retrieve your secret recovery phrase.applies to Ledger Nano X It is compatible with hardware wallets and will be deployed with firmware release 2.2.1.
to $545 million Bitcoin (BTC) is estimated to be lost in 2022 due to lost passwords or wrong recovery phrases, demonstrating the real need to address this problem.
However, Ledger users have voiced strong opposition to the feature, as it requires a secret recovery phrase to be stored online and associated with a passport or national ID card.
Ledger users say “no”
a Post on Reddit As for the new Ledger Recover feature, we labeled this a “disaster waiting to happen”.
The OP summarized his objections to this feature by pointing out the dangers of sharing seed phrases online while citing the Ledger 2020 data breach.
“Again, I am incredulous about this matter. It opens the door to a new level of crypto fraud.”
Most commentators expressed a similar opinion, with the most upvoted comment adding that the requirement to upload an ID makes this proposal even less desirable from a security perspective.
“Yeah, that’s a no from me, dog. Do I have to send a picture of my ID as well? That’s difficult.”
One user said that subscribing to new features is optional and that this is not an event. However, in response, it was stated that the fact that Ledger Recover exists “means that devices and seeds can be compromised, regardless of identity.”
data breach
Ledger’s systems were compromised in July 2020, resulting in the loss of customer data such as names, phone numbers, email addresses and, in some cases, home addresses.
The company announced that by December 2020, the information had been leaked on a hacker forum called RaidForums, making it accessible to everyone.
After uploading the data, Ledger customers reported being threatened.For example, one Rediter Receive a text message demanding 0.05 BTC within 48 hours or get killed. another I shared an email requesting $500 BTC. Otherwise, you risk burglary and torture.
“Otherwise, I may show up with my friends when you least expect it, and we’ll find a way to crush you and get the seed in your wallet.” .”
The consensus was that such messages were empty threats to compliance, but Ledger users were still outraged by the company’s data handling practices. With this in mind, uploading an ID for the recovery phrase feature is a big challenge.
Leisure CEO Pascal Gauthier apologized to users and expressed sympathy for the threats they received.
“In the name of Ledger, we deeply regret this situation. We know that this transgression is regrettable at best and maddening at worst.”
As an emerging field, cryptocurrency has some inefficiencies and problems. However, as it stands, being your own bank requires you to be responsible for your recovery phrase.
