SNEAK PEEK

• Ledger’s introduction of Ledger Recover has faced strong criticism from the crypto community.
• Users can subscribe to Ledger Recover for additional protection for their recovery phrase.
• Mudit Gupta, the chief information security officer at Polygon Labs, raised concerns about Ledger Recover.

Ledger’s latest feature, Ledger Recover, has stirred up a wave of dissatisfaction among members of the crypto community, particularly those who own Ledger wallets. Taking to social media, these individuals express their discontent with the newly introduced retrieval solution for hardware crypto wallets. Ledger Recover, designed to provide a safety net in case users misplace their seed phrase, has failed to meet their expectations, prompting vocal criticism.

Exciting update, Ledger has a new product, Ledger Recover, that’s launching soon: https://t.co/nT1VHnnSYz

🧵Here’s what Ledger Recover is and what it isn’t, explained by @P3b7_ & in the thread below. pic.twitter.com/RW1w07H6pK

— Ledger (@Ledger) May 16, 2023

Users who desire an additional layer of protection for their secret recovery phrase now have the option to subscribe to Ledger Recover. This innovative feature allows individuals to obtain a backup of their recovery phrase.

However, it’s important to note that utilizing Ledger Recover is entirely voluntary. If you initially purchased a Ledger wallet with the intention of managing your recovery phrase independently, you can continue to do so without any obligations or changes.

The recent announcement made by the ledger CTO has sparked significant attention in the cryptocurrency community. Prominent figures in the space have voiced their criticism of this decision.

Mudit Gupta, the chief information security officer at Polygon Labs, strongly cautioned against enabling this feature, labeling it horrendous. Gupta elaborated in a series of tweets, highlighting the issue of encrypted key fragments being sent to three corporations, thereby granting them the ability to reconstruct users’ keys.

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.

— Mudit Gupta (@Mudit__Gupta) May 16, 2023

In response to Mudit Gupta’s concerns, Changpeng Zhao, the CEO of the world’s largest cryptocurrency exchange, entered the conversation with a different perspective. Zhao stated that the seed can now be taken off the device, signaling a departure from the previous notion that “your keys never leave the device.”

So the seed can leave the device now?

Sounds like a different direction than “your keys never leave the device”. 🤷‍♂️

— CZ 🔶 Binance (@cz_binance) May 16, 2023

A Reddit user passionately exclaimed, “We’re on the brink of a disastrous scenario here! I’m utterly astonished by what I’m reading. It’s mind-boggling that a hardware wallet provider would promote backing up your seed phrase online and handing over your Passport/ID to them—especially considering their experience with a data breach!”

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• Source: https://investorbites.com/ledgers-latest-feature-draws-criticism-users-express-discontent-with-ledger-recover/