• Ledger released an optional subscription service called Ledger Recover to help users back up their wallets seed phrase.
• The service has been met with criticism from the crypto community, who suggested it created a backdoor for malicious actors to exploit.
• Delegate Cash builder foobar urged users to switch wallets due to Ledger’s “wanton disregard for customer safety”.
Ledger Releases Ledger Recover Subscription Service
Ledger, one of the most popular hardware wallet providers, has unveiled an optional subscription service called Ledger Recover which helps users back up their wallet seed phrases for $9.99 per month. This method is known as cold storage and is considered one of the most secure ways to store crypto assets because hardware wallets have no connection to the internet, reducing the risk of hacks.
Criticism Over Potential Backdoor
The new feature has received significant pushback from the crypto community who have suggested that it creates a backdoor that bad actors can exploit. Delegate Cash builder foobar argued that hackers could take advantage of this potential vulnerability and urged users to switch wallets due to Ledger’s “wanton disregard for customer safety”.
How It Works
Ledger explains that when customers sign up for the service, their seed phrases will be split into three encrypted fragments stored separately with Ledger, Coincover, and EscrowTech. Although they have assured customers that this process is secure and opt-in only, this did not convince many members in the crypto community arguing their data could still be vulnerable despite taking these measures.
Response from Ledger
In response to these concerns, Ledger pushed back against critics by rolling out a firmware update which was meant to address some of these perceived weaknesses with its wallet recovery service. However, this failed to satisfy some members in the crypto community who were still unconvinced by these assurances of security by saying it would not stop potential attacks if someone was determined enough or had access through other means such as malware or social engineering techniques.
Deciding how best store your cryptocurrency can be difficult as each method has its disadvantages but using hardware wallets are often touted as being one of the most secure options by core crypto proponents due its lack of connection with the internet reducing hack attempts on user’s data and funds stored in them . Despite attempts by companies such as ledger attempting make storing data more secure , there are still doubts over whether extra steps taken such as splitting user’s seed phrases into three fragments stored separately is still vulnerable if someone gains access through other channels such as malware or social engineering tactics .